BILL REQ. #:  S-1454.1 

Read first time 02/13/2003.   Referred to Committee on Health & Long-Term Care.

     AN ACT Relating to creating a joint underwriting association for gynecologists and obstetricians; and adding a new chapter to Title 48 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Association" means the joint underwriting association established under this chapter.
     (2) "Gynecologist and obstetrician insurance" or "insurance" means insurance coverage against the legal liability of the insured and against loss damage or expense incident to a claim arising out of the death or injury of a person as a result of negligence or malpractice in rendering professional service by a licensee.
     (3) "Licensee" means a person or facility licensed to provide gynecological or obstetrical services.

NEW SECTION.  Sec. 2   The insurance commissioner shall approve by December 31, 2003, a reasonable plan for the establishment of a nonprofit, joint underwriting association for gynecologist and obstetrician insurance subject to the conditions and limitations contained in this chapter. This plan must include a market assistance plan to be used prior to activating a joint underwriting association.

NEW SECTION.  Sec. 3   The association is comprised of all insurers possessing a certificate of authority to write and engaged in writing medical malpractice insurance within this state and general casualty companies. Every insurer must be a member of the association and must remain a member as a condition of its authority to continue to transact business in this state. Only licensees may participate in the joint underwriting authority.

NEW SECTION.  Sec. 4   A licensee may apply to the association to purchase insurance and the association must offer a policy with liability limits of one million dollars per claim and three million dollars per annual aggregate, or any other minimum level of mandated coverage as determined by the department of licensing. The insurance commissioner shall require the use of a rating plan for malpractice insurance that permits rates to be modified according to practice volume. Any rating plan for malpractice insurance used under this section must be based on sound actuarial principles.

NEW SECTION.  Sec. 5   The insurance commissioner may select an insurer to administer a plan established under this chapter. The insurer must be admitted to transact the business of insurance of the state of Washington.

NEW SECTION.  Sec. 6   The insurance commissioner may not approve a policy written on a claims made basis by an insurer doing business in this state unless the insurer guarantees to the commissioner the continued availability of suitable liability protection for licensees subsequent to the discontinuance of professional practice by a licensee or the sooner termination of the insurance policy by the insurer for so long as there is a reasonable probability of a claim for injury for which the licensee might be liable.

NEW SECTION.  Sec. 7   A risk management program for insureds of the association must be established as a part of the plan. This program must include but not be limited to: Investigation and analysis of frequency, severity, and causes of adverse or untoward outcomes; development of measures to control these injuries; systematic reporting of incidents; investigation and analysis of patient complaints; and education of association members to improve quality of care and risk reduction.

NEW SECTION.  Sec. 8   The insurance commissioner may adopt all rules necessary to ensure the efficient, equitable operation of the association, including but not limited to, rules requiring or limiting certain policy provisions.

NEW SECTION.  Sec. 9   Sections 1 through 8 of this act constitute a new chapter in Title 48 RCW.