Texas Insurance Code - Not Codified - Article 21.49-4. Self-Insurance Trusts
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Art. 21.49-4. SELF-INSURANCE TRUSTS.
Article repealed effective April 1, 2007
(a) In this article:
(1) "Physician" means a person licensed to practice
medicine in this state.
(2) "Dentist" means a person licensed to practice dentistry
in this state.
(3) "Health care liability claim" means a cause of action
against a physician or dentist for treatment, lack of treatment, or
other claimed departure from accepted standards of health care or
safety which proximately results in injury to or death of the
patient, whether the patient's claim or cause of action sounds in
tort or contract.
(4) "Charitable organization" has the meaning assigned by
Section 84.003, Civil Practice and Remedies Code.
(5) "Volunteer health care provider" has the meaning
assigned by Section 84.003, Civil Practice and Remedies Code.
(b) An incorporated association, the purpose of which,
among other things, shall be to federate and bring into one compact
organization the entire profession licensed to practice medicine
and surgery or dentistry in the State of Texas, or a portion of the
members of the profession licensed to practice medicine who are
practicing a particular specialty within the practice of medicine
or surgery in the state or are practicing within a particular region
of the state, may create a trust to self-insure physicians or
dentists and by contract or otherwise agree to insure other members
of the organization or association against health care liability
claims and related risks on complying with the following
conditions:
(1) the organization or association must have been in
continuing existence for a period of at least two years;
(2) establishment of a health care liability claim trust or
other agreement to provide coverage against health care liability
claims and related risks; and
(3) employment of appropriate professional staff and
consultants for program management.
(c) The trust may purchase, on behalf of the members of the
organizing association, medical professional liability insurance,
specific excess insurance, aggregate excess insurance, and
reinsurance, as in the opinion of the trustees are necessary. The
trust fund is further authorized to purchase such risk management
services as may be required and pay claims that arise under any
deductible provisions.
(c-1) The trust, in accordance with Subsection (c) of this
article, may make available professional liability insurance
covering a volunteer health care provider for an act or omission
resulting in death, damage, or injury to a patient while the person
is acting in the course and scope of the person's duties as a
volunteer health care provider as described by Chapter 84, Civil
Practice and Remedies Code. This subsection does not affect the
liability of a volunteer health care provider who is serving as a
direct service volunteer of a charitable organization. Section
84.004(c), Civil Practice and Remedies Code, applies to the
volunteer health care provider without regard to whether the
volunteer health care provider obtains liability insurance under
this subsection. The trust may make professional liability
insurance available under this subsection to a volunteer health
care provider without regard to whether the volunteer health care
provider is a physician or dentist.
(d) The trust investment powers and limitations shall be the
same as those of any state bank with trust powers. The trust shall
adopt rules and regulations to guarantee all contingent liabilities
in the event of dissolution.
(e) The trust is not engaged in the business of insurance
under this code and other laws of this state and the provisions of
any chapters or sections of this code are declared inapplicable to a
trust organized and operated under this article, provided that the
State Board of Insurance may require any trust created under this
article to satisfy reasonable minimum requirements to insure the
capability of the trust to satisfy its contractual obligations.
(f) On request, the trust shall furnish such books, records
and documents as are required by the State Board of Insurance to
fulfill its obligations under Subsection (e) of this article
relating to the solvency of the trust.
(g) The trust shall file, for informational purposes only,
all rates and forms with the State Board of Insurance.
(h) The trust shall file with the State Board of Insurance
all liability claims reports which are required pursuant to
Articles 1.24A and 1.24B, Insurance Code.
(i) If the trust is found to be in violation of or to have
failed to comply with any provision of this code or any duly
promulgated rule or regulation of the State Board of Insurance
which is declared applicable to a trust organized and operated
under this article, the State Board of Insurance, pursuant to
Section 7, Article 1.10, Insurance Code, may order sanctions for
such violation.
(j) The trust shall file its independently audited annual
financial statement with the State Board of Insurance; this audit
shall not be considered an examination document.
Added by Acts 1977, 65th Leg., p. 2063, ch. 817, Sec. 31.13, eff.
Aug. 29, 1977.
Subsecs. (f) to (j) added by Acts 1991, 72nd Leg., ch. 608, Sec. 1,
eff. Sept. 1, 1991; Subsec. (b) amended by Acts 2003, 78th Leg.,
ch. 206, Sec. 19.01, eff. June 11, 2003; Subsec. (a)(4), (5) added
by Acts 2005, 79th Leg., ch. 184, Sec.2, eff. May 27, 2005; Acts
2005, 79th Leg., ch. 246, Sec. 2, eff. May 30, 2005; Acts 2005, 79th
Leg., ch. 1136, Sec. 3, eff. June 18, 2005; Subsec. (c-1) added by
Acts 2005, 79th Leg., ch. 184, Sec. 3, eff. May 27, 2005; Acts 2005,
79th Leg., ch. 246, Sec. 3, eff. May 30, 2005; Acts 2005, 79th Leg.,
ch. 1136, Sec. 4, eff. June 18, 2005.
Article: 21.49 21.49-2V 21.49-3 21.49-3a 21.49-3b 21.49-3c 21.49-3d 21.49-4 21.49-4a 21.49-5 21.49-6 21.49-7 21.49-8 21.49-11 21.49-13
Last modified: August 11, 2007
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