HOUSE BILL REPORT

                  HB 2430

             As Reported By House Committee On:

             Financial Institutions & Insurance

Title:  An act relating to making technical corrections related to the policy limits of the midwifery joint underwriting association.

Brief Description:  Correcting an error concerning midwifery and birth center malpractice insurance.

Sponsors:  Representatives Dyer, Zellinsky, Kessler, Romero, Jones and Springer; by request of Insurance Commissioner.

Brief History:

Reported by House Committee on:

Financial Institutions & Insurance, January 26, 1994, DPS.

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 16 members:  Representatives Zellinsky, Chair; Scott, Vice Chair; Mielke, Ranking Minority Member; Dyer, Assistant Ranking Minority Member; Anderson; Dellwo; Dorn; Grant; R. Johnson; Kessler; Kremen; Lemmon; R. Meyers; Schmidt; Tate; and L. Thomas.

Staff:  Charlie Gavigan (786-7340).

Background:  In 1993 the Legislature created a Joint Underwriting Association for Midwives and Birthing Centers.  The Insurance Commissioner approves a plan for the establishment of this nonprofit association, which is comprised of all insurance companies authorized by the Insurance Commissioner to write malpractice and casualty insurance.  The joint underwriting association makes malpractice insurance available to licensed midwives, certified nurse midwives or licensed birthing centers.

The joint underwriting association offers an insurance policy with liability limits of $1 million per individual and $3 million per occurrence.

Summary of Substitute Bill:  The liability limits for malpractice insurance coverage under the Joint Underwriting Association for Midwives and Birthing Centers are changed.  Coverage is provided for up to $1 million per claim (rather than per individual), $3 million per year (rather than per occurrance), or other minimum levels of mandated coverage as determined by the Department of Health.

Substitute Bill Compared to Original Bill:  Technical corrections are made, including changing Health Services Commission to Department of Health.

Fiscal Note:  Not requested.

Effective Date of Substitute Bill:  This bill contains an emergency clause and takes effect immediately.

Testimony For:  These technical corrections are needed to implement the underwriting association created in 1993.

Testimony Against:  None

Witnesses:  Walt Corneille, and Melodie Barker, Office of the Insurance Commissioner (supports); Mike Kapphahn, Farmers Insurance (supports); and Martha Butzen, Midwives Association of Washington State (supports).