03RS SB115


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SB 115 (BR 1122) - W. Blevins, R. Jones II, E. Scorsone

     AN ACT relating to the Kentucky Medical Professional Mutual Insurance Authority and making an appropriation therefor.
     Create new sections of Subtitle 40 of KRS Chapter 304 to create the Kentucky medical professional mutual insurance authority to provide medical malpractice insurance to health care providers; provide that the authority is a nonprofit, independent, self-supporting de jure municipal corporation and political subdivision of the Commonwealth; provide for a board of directors which shall function in a manner similar to the governing body of a mutual insurance company; direct the board to hire a manager who shall have proven successful experience for a period of at least five (5) years as an executive at the general management level in insurance operations or in the management of a state fund for medical malpractice; establish powers and duties of the manager; provide that the authority shall provide medical malpractice insurance to any licensed health care provider who pays the premium and complies with any other qualifications and conditions adopted by the authority; require the authority to provide coverage to any health care provider who is unable to secure coverage in the voluntary market unless the health care provider owes undisputed premiums to a previous medical malpractice carrier or to a medical malpractice residual market mechanism; direct the authority to establish separate rating plans, rates and underwriting standards for different classes of risks; require rates to be based only on Kentucky experience; authorize the board to declare an annual dividend and distribute it in the form of premium discounts, dividends, or a combination of discounts and dividends if certain conditions are met; require a quarterly report of assets and liabilities to be provided to the board, the Governor, and the Legislative Research Commission; require the board to file an annual report indicating the business done in the previous year and deliver the report to the Governor, commissioner of the Department of Insurance, Auditor of Public Accounts, Attorney General, and co-chairs of the Legislative Research Commission; prohibit the authority from entering into a contract for an audit unless the Auditor of Public Accounts has turned down a request to perform the audit; provide that if the assets of the authority are less than its liabilities, the board may levy an assessment on its policyholders; require the board to formulate and adopt an investment policy; require the manager to compile and maintain statistical and actuarial data; prohibit the authority from receiving any direct state general fund appropriation; provide that upon request of the board, the Governor and the Secretary of the Finance and Administration Cabinet may authorize initial funding which may include a loan from existing state agencies not to exceed seven million dollars ($7,000,000); provide that the authority may utilize only agents duly and legally licensed and in good standing with the provisions of this chapter; exempt board members, the manager, and any employee from being held personally liable for acts taken in official capacity; require the board, manager, and employees to comply with the Executive Branch code of ethics; prohibit the authority from participating in any plan, pool, association, guarantee, or insolvency fund required by this chapter; require the board to comply with the open meetings and open records laws; direct the Attorney General and the Auditor of Public Accounts to monitor operations of the authority and authorize each to make examinations or investigations of the operations, practices, management, and other matters of the authority; require the Attorney General and the Auditor of Public Accounts to report jointly to the General Assembly in January in each year in which the General Assembly convenes in an even-numbered regular session the results of their monitoring activities.

     Feb 5-introduced in Senate
     Feb 7-to Appropriations and Revenue (S)

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