(1) If the Director of the Department of Consumer and Business Services finds, after hearings, that qualified members of any profession are unable to obtain insurance for damages arising out of professional negligence or that such professional liability insurance is not available at a reasonable cost to such members, the director may determine that a professional liability fund is necessary. Any such fund shall be separate and distinct from the General Fund, and interest earned by the fund shall be credited to the fund.
(2) The director may not make a determination to implement a professional liability fund if:
(a) The lack of availability of insurance is due to legitimate insurance underwriting considerations, including past claims experience, licensing noncompliance or inadequate risk management; and
(b) Actuarial studies show that private insurers are adequately setting rates for professional liability coverage, that a professional liability fund would not ultimately provide insureds lower premiums and that there is not an adequate number of potential insureds to fund a professional liability fund.
(3) The director may contract for actuarial studies in order to make the determinations required by this section. [1987 c.774 §89; 1989 c.966 §68]
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