BILL REQ. #:  Z-0327.1 

Read first time 01/15/2007.   Referred to Committee on Financial Institutions & Insurance.

     AN ACT Relating to medical malpractice closed claim reporting; and amending RCW 48.140.020.

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

Sec. 1   RCW 48.140.020 and 2006 c 8 s 202 are each amended to read as follows:
     (1) For claims closed on or after January 1, 2008:
     (a) Every insuring entity or self-insurer that provides medical malpractice insurance to any facility or provider in Washington state must report each medical malpractice closed claim to the commissioner.
     (b) If a claim is not covered or not reported by an insuring entity or self-insurer, the facility or provider named in the claim must report ((it)) either instance to the commissioner after a final claim disposition has occurred due to a court proceeding or a settlement by the parties.
     (i) Instances in which a claim is not reported by an insuring entity include, but are not limited to, situations in which the insuring entity contends that it cannot be regulated, such as:
     (A) A risk retention group that refuses to report closed claims and asserts that the federal liability risk retention act (95 Stat. 949; 15 U.S.C. 3901 et seq.) preempts state law; or
     (B) An unauthorized insurer refuses to report closed claims and asserts a federal exemption or other jurisdictional preemption.
     (ii) Instances in which a claim may not be covered by an insuring entity or self-insurer include, but are not limited to, situations in which the:
     (((i))) (A) Facility or provider did not buy insurance or maintained a self-insured retention that was larger than the final judgment or settlement;
     (((ii))) (B) Claim was denied by an insuring entity or self-insurer because it did not fall within the scope of the insurance coverage agreement; or
     (((iii))) (C) Annual aggregate coverage limits had been exhausted by other claim payments.
     (2) Beginning in 2009, reports required under subsection (1) of this section must be filed by March 1st, and include data for all claims closed in the preceding calendar year and any adjustments to data reported in prior years. The commissioner may adopt rules that require insuring entities, self-insurers, facilities, or providers to file closed claim data electronically.
     (3) The commissioner may impose a fine of up to two hundred fifty dollars per day against any insuring entity, except a risk retention group, that violates the requirements of this section.
     (4) The department of health, department of licensing, or department of social and health services may require a provider or facility to take corrective action to assure compliance with the requirements of this section.