Session Laws

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to further regulate professional liability insurance to health care providers, 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, as follows:

SECTION 1. Section 1 of chapter 175D of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by inserting after the word "person", in line 26, the following words:- , except as provided in the ninth paragraph of section six of chapter three hundred and sixty-two of the acts of nineteen hundred and seventy-five,.

SECTION 2. The first paragraph of section 6 of chapter 362 of the acts of 1975 is hereby amended by striking out the definition of "Net direct premiums".

SECTION 3. Said section 6 of said chapter 362 is hereby further amended by striking out the second paragraph, as amended by section 31 of chapter 351 of the acts of 1986, and inserting in place thereof the following paragraph:-

A temporary, nonexclusive, joint underwriting association is hereby established. The purpose of the association shall be to provide medical malpractice insurance on a self-supporting basis. Upon approval of the commissioner, the association may for all purposes consider the business of each category of health care provider as a separate line of business.

SECTION 4. Said section 6 of said chapter 362 is hereby further amended by striking out the third paragraph, as amended by section 32 of said chapter 351, and inserting in place thereof the following paragraph:-

The association shall, pursuant to the provisions of this section and the plan of operation with respect to medical malpractice insurance, have the power to issue or to cause to be issued policies of insurance to applicants, including incidental coverages and subject to limits as specified in the plan of operation but not to exceed two million dollars for each claimant under one policy and six million dollars for all claimants under one policy in any one year, or twenty million dollars for all claimants under one policy in any one year, provided the applicant is a hospital; to underwrite such insurance and to adjust and pay losses with respect thereto, or to appoint service companies to perform these functions; to assume reinsurance; and to assign reinsurance.

SECTION 5. The fourth paragraph of said section 6 of said chapter 362 is hereby amended by striking out, in lines 11 and 12, the words "preliminary assessment of all members for initial expenses necessary to commence operations,".

SECTION 5A. Said fourth paragraph of said section 6 of said chapter 362 is hereby further amended by striking out, in line 14, the words ", assessment of members to defray losses and expenses".

SECTION 6. The eighth paragraph of said section 6 of said chapter 362, as amended by chapter 680 of the acts of 1989, is hereby further amended by striking out the third and fourth sentences.

SECTION 7. Said section 6 of said chapter 362 is hereby further amended by striking out the ninth paragraph and inserting in place thereof the following paragraph:-

The association shall not be considered an "insurer" pursuant to the provisions of chapter one hundred and seventy-five D of the General Laws.

SECTION 8. Said section 6 of said chapter 362 is hereby further amended by striking out the tenth paragraph, as most recently amended by section 33 of chapter 351 of the acts of 1986, and inserting in place thereof the following paragraph:-

The association shall be governed by a board of eleven directors, two of whom shall be non-health care providers with expertise in insurance appointed by the commissioner. Seven directors shall be appointed by the commissioner as representatives of the health care profession, five of whom shall be physicians registered pursuant to section two of chapter one hundred and twelve of the General Laws and appointed, on a basis which reflects geographical balance, from a list of nominees provided by the Massachusetts Medical Society, one of whom shall be a representative of dentists appointed from a list of nominees provided by the Massachusetts Dental Society, and one of whom shall be a representative of licensed hospitals appointed from a list of nominees provided by the Massachusetts Hospital Association; such lists of nominees shall in each instance be comprised of the names of three persons for each director to be appointed. One director shall be appointed by the commissioner as a representative of insurance producers and one director shall be appointed by the commissioner as a representative of the public. Directors shall each be appointed to a term of three years, and vacancies occurring other than by expiration of a term among the directors so appointed shall be filled for the unexpired portion of such term in the same manner as the original appointment.

SECTION 9. The eleventh paragraph of said section 6 of said chapter 362 is hereby amended by striking out, in line 2, the words ", or any affected insurer,".

SECTION 10. Said section 6 of said chapter 362 is hereby further amended by adding the following paragraph:-

There shall be no liability on the part of, and no cause of action of any nature shall arise against, any insurer that is authorized to write and is engaged in writing insurance within the commonwealth for any obligations incurred, any deficit sustained, or any action taken before, on, or after the effective date of this act by the joint underwriting association established herein or by its successor organization.

SECTION 11. Section 13 of said chapter 362, as most recently amended by section 37 of chapter 351 of the acts of 1986, is hereby further amended by striking out, in line 4, the word "ninety-two" and inserting in place thereof the following word:- ninety-four.

SECTION 12. The eleven directors to be appointed pursuant to the tenth paragraph of section six of chapter three hundred and sixty-two of the acts of nineteen hundred and seventy-five, as amended by section eight of this act, shall be appointed within forty-five days of the effective date of this act, and the terms of all those persons serving on the board of directors of said association upon the effective date of this act shall expire upon the appointment of such eleven directors.