BILL REQ. #:  S-3576.1 

Read first time 01/15/2004.   Referred to Committee on Financial Services, Insurance & Housing.

     AN ACT Relating to underwriting medical malpractice insurance; and adding a new section to chapter 48.19 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 48.19 RCW to read as follows:
     (1) For the purposes of this section, "underwrite" or "underwriting" means the process of selecting, rejecting, or pricing a risk, and includes each of the following processes:
     (a) Evaluation, selection, and classification of risk;
     (b) The application of rates, rating rules, and classification plans to risks that are accepted; and
     (c) Determining eligibility for:
     (i) Coverage provisions;
     (ii) Providing or limiting the amount of coverage or policy limits; or
     (iii) Premium payment plans.
     (2) Each medical malpractice insurer must file its underwriting rules, guidelines, criteria, standards, or other information the insurer uses to underwrite medical malpractice coverage.
     (a) Every filing of underwriting information must identify and explain:
     (i) The class, type, and extent of coverage provided by the insurer;
     (ii) Any changes that have occurred to the underwriting standards; and
     (iii) How underwriting changes are expected to affect future losses.
     (b) This information must be filed with the commissioner at least thirty days before it becomes effective.
     (c) This information is subject to public disclosure upon receipt by the commissioner.