Texas 2009 - 81st Regular

Texas House Bill HB3855 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Eiland H.B. No. 3855
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the reporting of information to the Texas Department of
7	7	Insurance by certain insurance carriers.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Title 12, Insurance Code, is amended by adding
10	10	Chapter 3504 to read as follows:
11	11	CHAPTER 3504. INFORMATION CONCERNING PROFESSIONAL LIABILITY
12	12	INSURANCE
13	13	Sec. 3504.001. DEFINITIONS. (a) In this chapter
14	14	"Professional Liability Insurance" means a type of liability
15	15	insurance that covers:
16	16	(1) legal liability for damages due to injuries to
17	17	other persons, damage to their property, or other damage or loss to
18	18	such other persons (including the expenses of litigation and
19	19	settlement) resulting from or arising out of any tortuous act,
20	20	error, or omission of the covered individual in common law,
21	21	statutory, or constitutional causes of action while in performance
22	22	of such individual's official duties.
23	23	(2) the cost of legal representation for the covered
24	24	individual in connection with any administrative or judicial
25	25	proceeding (including any investigation or disciplinary
26	26	proceeding) relating to any act, error, or omission of the covered
27	27	individual while in performance of such individual's official
28	28	duties.
29	29	(b) "Issuer" means an insurance company, reciprocal or
30	30	interinsurance exchange, mutual insurance company, capital stock
31	31	company, county mutual insurance company, Lloyd's plan, or other
32	32	legal entity authorized to write professional liability insurance
33	33	policies in this state.
34	34	(c) "Rate" means the cost of insurance per exposure unit,
35	35	whether expressed as a single number or as a prospective loss cost,
36	36	with an adjustment to account for the treatment of expenses,
37	37	profit, and individual insurer variation in loss experience, and
38	38	before any application of individual risk variations based on loss
39	39	or expense considerations.
40	40	Sec. 3504.002. REPORT. (a) Each Professional Liability
41	41	issuer authorized to issue professional liability insurance
42	42	polices in this state shall submit a report to the department
43	43	containing rates, profit margins, the total number of claims paid,
44	44	the number of claims filed, exclusions in coverage, and the types of
45	45	coverage being offered.
46	46	(b) If the department determines that the information filed
47	47	by an insurer under this chapter is incomplete or otherwise
48	48	deficient, the department may request additional information from
49	49	the insurer.
50	50	(c) The commissioner shall adopt rules necessary to
51	51	implement this section, including rules concerning any applicable
52	52	reporting period and the form of the report required in subsection
53	53	(a).
54	54	Sec. 3504.003. INTERNET POSTING; CONSUMER HOTLINE. (a)
55	55	The department shall post on the department's Internet website:
56	56	(1) the information contained in the reports received
57	57	under Section 3504.002; and
58	58	(2) The department shall operate a toll-free telephone
59	59	hotline to respond to consumer inquiries concerning professional
60	60	liability insurance.
61	61	SECTION 2. The commissioner of insurance shall adopt rules
62	62	under Section 3504.002(c), Insurance Code, as added by this Act,
63	63	not later than January 1, 2010. The rules must require Professional
64	64	Liability issuers to submit the first report under Section
65	65	3504.002, Insurance Code, as added by this Act, not later than April
66	66	1, 2010.
67	67	SECTION 3. This Act takes effect immediately if it receives
68	68	a vote of two-thirds of all the members elected to each house, as
69	69	provided by Section 39, Article III, Texas Constitution. If this
70	70	Act does not receive the vote necessary for immediate effect, this
71	71	Act takes effect September 1, 2009.