| 1 | 1 | | 89R2462 SCL-D |
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| 2 | 2 | | By: Cain H.B. No. 1649 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to availability of certain insurance from a self-insurance |
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| 10 | 10 | | trust for health care liability claims. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. The heading to Section 2212.054, Insurance Code, |
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| 13 | 13 | | is amended to read as follows: |
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| 14 | 14 | | Sec. 2212.054. POWERS AND DUTIES OF TRUST. |
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| 15 | 15 | | SECTION 2. Section 2212.054, Insurance Code, is amended by |
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| 16 | 16 | | amending Subsection (a) and adding Subsection (c) to read as |
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| 17 | 17 | | follows: |
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| 18 | 18 | | (a) A trust may: |
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| 19 | 19 | | (1) purchase, on behalf of the members of the |
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| 20 | 20 | | association that created the trust or other persons who are |
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| 21 | 21 | | licensed to practice medicine or dentistry in this state, [medical] |
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| 22 | 22 | | professional liability insurance, specific excess insurance, |
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| 23 | 23 | | aggregate excess insurance, and reinsurance, as necessary in the |
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| 24 | 24 | | opinion of the trustees; |
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| 25 | 25 | | (2) purchase required risk management services; and |
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| 26 | 26 | | (3) pay claims that arise under any deductible |
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| 27 | 27 | | provisions. |
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| 28 | 28 | | (c) A trust may not make membership in the association that |
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| 29 | 29 | | created the trust a condition of issuing a contract for |
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| 30 | 30 | | professional liability insurance or other insurance to a person |
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| 31 | 31 | | licensed to practice medicine or dentistry in this state. |
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| 32 | 32 | | SECTION 3. This Act takes effect immediately if it receives |
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| 33 | 33 | | a vote of two-thirds of all the members elected to each house, as |
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| 34 | 34 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 35 | 35 | | Act does not receive the vote necessary for immediate effect, this |
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| 36 | 36 | | Act takes effect September 1, 2025. |
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