- Introduced -

SB 1204 - This act creates the Missouri Medical Malpractice Joint Underwriting Association. The association will be an independent public corporation for the purpose of insuring health care providers against medical malpractice claims. It will operate as a domestic mutual insurance company and will not be a state agency. The association is granted the powers of a not for profit corporation. The association's members will consist of insurance companies authorized to write casualty insurance in Missouri. The association is authorized to issue medical malpractice insurance policies in amounts not to exceed $1 million per claimant or $3 million for all claimants under one policy. In addition, the association is authorized to make an assessment against member companies to meet the operational expenses of the association. The association shall be operational by March 1, 2004.

The act creates a board of directors for the association. The board shall be appointed by January 1, 2003, and will consist of five members who shall serve five years and be appointed by the Governor with the advice and consent of the Senate. The board shall adopt a plan of operation by March 1, 2004.

The board must hire an administrator by March 1, 2003, to act as the association's chief executive officer. The administrator must formulate a risk management program for all policyholders. The program shall include an investigation into the causes of medical injuries, development of methods to control these injuries, and an audit of association members to assure implementation of the program. The plan may refuse to insure any insured who refuses to comply with the risk management program.

The act requires the Director of the Department of Insurance to obtain complete statistical data with respect to medical malpractice losses and well as the costs related to medical malpractice liability insurance. The Director shall promulgate a statistical plan relating to loss and loss adjustment expense experience.

The act requires an annual audit of the association. A copy of the audit report shall be filed with the Director of the Department of Insurance and shall be open to the public for inspection.

STEPHEN WITTE