Whereas, The deferred operation of this act would tend to defeat its purpose, which is, in part, to guarantee the continued affordability of medical malpractice insurance, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Notwithstanding any provision of the general or special laws to the contrary, premium charges for medical malpractice insurance for physicians and surgeons insured by the medical malpractice joint underwriting association established pursuant to section six of chapter three hundred and sixty-two of the acts of nineteen hundred and seventy-five and by any insurance company with respect to policies issued on or after July first, nineteen hundred and eighty-four, shall be equal to the premium charges contained in the decision of the Commissioner of Insurance dated May eighteenth, nineteen hundred and eighty-four.
Premium charges with respect to policies of medical malpractice insurance for physicians and surgeons issued by the Joint Underwriting Association or any insurance company on or after July first, nineteen hundred and eighty-four shall be subject, effective May first, nineteen hundred and eighty-six, to the provisions of section five A of chapter one hundred and seventy-five A of the General Laws.
SECTION 2. Notwithstanding any provisions of the general or special laws to the contrary, the medical malpractice joint underwriting association established pursuant to section six of chapter three hundred and sixty-two of the acts of nineteen hundred and seventy-five shall be subject to an audit by the State Auditor. The State Auditor shall be reimbursed by the Massachusetts Medical Society for the actual cost of performing said audit.
An audit performed pursuant to this section shall include, but not be limited to, the following matters: an analysis of the ratio of premium dollars to incurred but not reported losses, management procedures, risk management procedures, the composition of the board of directors, reserve limits and adequacy, reserve methodologies, claims nature and breakdown in accordance with settlements and judgements, general accounting procedures, and overall fiscal soundness.
The State Auditor shall report its findings and recommendations to the Joint Legislative Committee on Insurance on or before April thirtieth, nineteen hundred and eighty-six.
SECTION 3. Section two of this act shall expire on June thirtieth, nineteen hundred and eighty-six.