Bill No.: SF0078                  Drafter:  JWL

 

LSO No.:  05LSO-0416              Effective Date:  2/25/2005

 

Enrolled Act No.:  SEA0062

 

Chapter No.:       145

 

Prime Sponsor:     Joint Labor, Health and Social Services Interim Committee

 

Catch Title:       Medical malpractice insurance.

 

Subject:  Provides additional regulation of insurance rates in noncompetitive markets.

 

Summary/Major Elements:

 

·        Current law requires the insurance commissioner to regulate the insurance premiums in noncompetitive markets to ensure that rates are not excessive, inadequate or unfairly discriminatory.

 

·        This act:

 

o       Requires a public rate hearing if an insurer in a noncompetitive market requests a rate increase of 20% or more (25% for health care malpractice insurance);

 

o       Limits individual premiums in those markets to no more than 100% above the base rate for the same risk class;

 

o       Requires that "tail" coverage be calculated as a percentage of the base rate for the insured's risk class, with the formula set forth in the original policy;

 

o       Increases the mandatory notice period to an insured health care provider from a malpractice insurer before nonrenewal or renewal with altered terms of a health care malpractice policy.