By: Eiland H.B. No. 3855
A BILL TO BE ENTITLED
AN ACT
relating to the reporting of information to the Texas Department of
Insurance by certain insurance carriers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 12, Insurance Code, is amended by adding
Chapter 3504 to read as follows:
CHAPTER 3504. INFORMATION CONCERNING PROFESSIONAL LIABILITY
INSURANCE
Sec. 3504.001. DEFINITIONS. (a) In this chapter
"Professional Liability Insurance" means a type of liability
insurance that covers:
(1) legal liability for damages due to injuries to
other persons, damage to their property, or other damage or loss to
such other persons (including the expenses of litigation and
settlement) resulting from or arising out of any tortuous act,
error, or omission of the covered individual in common law,
statutory, or constitutional causes of action while in performance
of such individual's official duties.
(2) the cost of legal representation for the covered
individual in connection with any administrative or judicial
proceeding (including any investigation or disciplinary
proceeding) relating to any act, error, or omission of the covered
individual while in performance of such individual's official
duties.
(b) "Issuer" means an insurance company, reciprocal or
interinsurance exchange, mutual insurance company, capital stock
company, county mutual insurance company, Lloyd's plan, or other
legal entity authorized to write professional liability insurance
policies in this state.
(c) "Rate" means the cost of insurance per exposure unit,
whether expressed as a single number or as a prospective loss cost,
with an adjustment to account for the treatment of expenses,
profit, and individual insurer variation in loss experience, and
before any application of individual risk variations based on loss
or expense considerations.
Sec. 3504.002. REPORT. (a) Each Professional Liability
issuer authorized to issue professional liability insurance
polices in this state shall submit a report to the department
containing rates, profit margins, the total number of claims paid,
the number of claims filed, exclusions in coverage, and the types of
coverage being offered.
(b) If the department determines that the information filed
by an insurer under this chapter is incomplete or otherwise
deficient, the department may request additional information from
the insurer.
(c) The commissioner shall adopt rules necessary to
implement this section, including rules concerning any applicable
reporting period and the form of the report required in subsection
(a).
Sec. 3504.003. INTERNET POSTING; CONSUMER HOTLINE. (a)
The department shall post on the department's Internet website:
(1) the information contained in the reports received
under Section 3504.002; and
(2) The department shall operate a toll-free telephone
hotline to respond to consumer inquiries concerning professional
liability insurance.
SECTION 2. The commissioner of insurance shall adopt rules
under Section 3504.002(c), Insurance Code, as added by this Act,
not later than January 1, 2010. The rules must require Professional
Liability issuers to submit the first report under Section
3504.002, Insurance Code, as added by this Act, not later than April
1, 2010.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.