Texas Insurance Code Title 10, Chapter 2203 - Medical Liability Insurance Joint Underwriting Association

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 2203.001 - Short Title
  This chapter may be cited as the Texas Medical Liability Insurance Underwriting Association Act. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec....
• Texas Section 2203.002 - Definitions
  In this chapter: (1) "Assisted living facility" means a for-profit or not-for-profit assisted living facility. (2) "Association" means the joint underwriting association established under this...
• Texas Section 2203.003 - Immunity
  Liability does not exist on the part of, and a cause of action does not arise against, the association, an association agent or employee, an...
• Texas Section 2203.004 - Applicability Of Other Law
  The association is subject to Sections 401.051, 401.052, 401.054-401.062, 401.151, 401.152, 401.155, and 401.156 and Subchapter A, Chapter 86. Added by Acts 2005, 79th Leg.,...

SUBCHAPTER B ASSOCIATION ADMINISTRATION AND OPERATION

• Texas Section 2203.005 - Relationship To Surplus Lines Insurance
  The association is not an authorized insurer for purposes of Chapter 981 with respect to medical liability insurance for physicians. Added by Acts 2005, 79th...
• Texas Section 2203.051 - Purpose Of Association
  The association provides medical liability insurance on a self-supporting basis. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1,
• Texas Section 2203.052 - Board Of Directors
  (a) The association is governed by a board of directors composed of the following nine members: (1) five representatives of insurers that are required to...
• Texas Section 2203.053 - Plan Of Operation
  (a) The association operates under a plan of operation adopted by the commissioner. (b) The plan of operation must: (1) provide for economic, fair, and...
• Texas Section 2203.054 - Amendments To Plan Of Operation
  Amendments to the plan of operation: (1) shall be made at the commissioner's direction; or (2) may be made by the board of directors, subject...
• Texas Section 2203.055 - Joint Underwriting Association Membership
  (a) The association is composed of each insurer, including a Lloyd's plan and a reciprocal or interinsurance exchange, authorized to write and writing liability insurance,...

SUBCHAPTER C ELIGIBILITY FOR COVERAGE

• Texas Section 2203.056 - Annual Statement; Additional Information
  (a) Not later than March 1 of each year, the association shall file with the department a statement that contains information regarding the association's transactions,...
• Texas Section 2203.101 - General Eligibility
  (a) The commissioner shall by order establish the categories of physicians and health care providers that are eligible to obtain insurance coverage from the association....
• Texas Section 2203.102 - Insurer Of Last Resort For Certain Nursing Homes And Assisted Living Facilities
  (a) A nursing home or assisted living facility not otherwise eligible for insurance coverage from the association under Section 2203.101 is eligible for that coverage...
• Texas Section 2203.1021 - Volunteer Health Care Providers
  (a) In this section: (1) "Charitable organization" has the meaning assigned by Section 84.003, Civil Practice and Remedies Code. (2) "Volunteer health care provider" has...
• Texas Section 2203.103 - Eligibility Of Other Health Care Practitioners And Facilities
  (a) In this section: (1) "Health care" includes a medical or health care service, including an examination, treatment, medical diagnosis, or evaluation, and care provided...

SUBCHAPTER D ASSOCIATION COVERAGE

• Texas Section 2203.104 - Application For Coverage
  (a) A health care provider or physician included in a category eligible for insurance coverage by the association is entitled to apply to the association...
• Texas Section 2203.151 - Powers Relating To Medical Liability Insurance Coverage
  (a) Under this chapter and the plan of operation, the association, on behalf of the association members, may: (1) issue, or cause to be issued,...
• Texas Section 2203.152 - Policy Limits
  The association may not issue one or more policies insuring an individual or organization for an amount exceeding $1 million for each occurrence and $3...
• Texas Section 2203.153 - Following Form Excess Liability Coverage
  Excess liability insurance coverage written for a physician or health care provider by the association under this chapter must be written as following form excess...
• Texas Section 2203.154 - Punitive Damages Excluded
  The association may not issue or renew a medical liability insurance policy for a physician or health care provider under this chapter that includes coverage...
• Texas Section 2203.155 - Installment Plan
  The association may offer an installment payment plan for insurance coverage obtained through the association. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017),...

SUBCHAPTER E RATES AND POLICY FORMS

• Texas Section 2203.156 - Term Of Policy; Notice Of Certain Changes
  (a) A policy issued by the association must be for a term of one year or less, as determined by the association. (b) Section 1901.253...
• Texas Section 2203.201 - Applicability Of Other Law To Rates And Policy Forms
  (a) Except as provided by Subsection (b) and subject to Section 2203.203, the following laws govern the rates, rating plans, rating rules, rating classifications, territories,...
• Texas Section 2203.202 - Rate Standards
  (a) In determining rates, rating plans, rating rules, rating classifications, territories, and policy forms, the association shall consider: (1) the past and prospective loss and...

SUBCHAPTER F FINANCIAL PARTICIPATION BY MEMBERS AND POLICYHOLDERS

• Texas Section 2203.203 - Discount For Certain Health Care Providers
  (a) The rates applicable to professional liability insurance coverage provided by the association for not-for-profit nursing homes and not-for-profit assisted living facilities must reflect a...
• Texas Section 2203.251 - Deficit Recoupment
  (a) This section applies to a deficit sustained in a single year by the association with respect to: (1) physicians and health care providers, other...
• Texas Section 2203.252 - Assessment Of Policyholders For Deficit Recoupment
  (a) Each policyholder within the group of physicians and health care providers, other than nursing homes and assisted living facilities, or within the group of...
• Texas Section 2203.253 - Limitation On Reimbursement By Member For Deficit Recoupment
  (a) An association member is not obligated in a single year to reimburse the association for the member's proportionate share of the deficits from the...
• Texas Section 2203.254 - Contribution By Members For Sound Financial Operation
  If sufficient funds are not available for the sound financial operation of the association, each association member shall contribute to the financial requirements of the...
• Texas Section 2203.255 - Reimbursement Of Assessment Or Contribution; Premium Tax Credit
  (a) Subject to commissioner approval, the association shall reimburse an assessment or contribution, with interest at a rate approved by the commissioner, to: (1) the...

SUBCHAPTER G POLICYHOLDER'S STABILIZATION RESERVE FUNDS

• Texas Section 2203.256 - Standards For Recoupment Provisions
  A provision for recoupment must be based on: (1) the association's loss and expense experience; and (2) other information based on that experience the department...
• Texas Section 2203.301 - Policyholder's Stabilization Reserve Fund For Physicians And Certain Health Care Providers
  (a) The policyholder's stabilization reserve fund for physicians and health care providers other than nursing homes and assisted living facilities is collected and administered by...
• Texas Section 2203.302 - Policyholder's Stabilization Reserve Fund Charge For Physicians And Certain Health Care Providers
  (a) Each policyholder other than a nursing home or assisted living facility shall pay annually into the policyholder's stabilization reserve fund under Section 2203.301 a...
• Texas Section 2203.303 - Policyholder's Stabilization Reserve Fund For Nursing Homes And Assisted Living Facilities
  (a) The policyholder's stabilization reserve fund for nursing homes and assisted living facilities is collected and administered by the association as provided by this section,...
• Texas Section 2203.304 - Policyholder's Stabilization Reserve Fund Charge For Nursing Homes And Assisted Living Facilities
  (a) Each policyholder that is a nursing home or assisted living facility shall pay annually into the policyholder's stabilization reserve fund under Section 2203.303 a...

SUBCHAPTER H REVENUE BOND PROGRAM

• Texas Section 2203.305 - Separate Funds
  The policyholder's stabilization reserve fund for physicians and health care providers other than nursing homes and assisted living facilities described by Section 2203.301 is separate...
• Texas Section 2203.351 - Purpose
  The legislature finds that the issuance of bonds to provide a method to raise funds to provide professional liability insurance for nursing homes and assisted...
• Texas Section 2203.352 - Definitions
  In this subchapter: (1) "Board" means the board of directors of the Texas Public Finance Authority. (2) "Bond resolution" means the resolution or order authorizing...
• Texas Section 2203.353 - Applicability Of Other Laws
  The following laws apply to bonds issued under this subchapter to the extent consistent with this subchapter: (1) Chapters 1201, 1202, 1204, 1205, 1231, 1232,...
• Texas Section 2203.354 - Issuance Of Bonds Authorized
  On behalf of the association and subject to Section 2203.355, the Texas Public Finance Authority shall issue revenue bonds to: (1) fund the policyholder's stabilization...
• Texas Section 2203.355 - Limitation On Amount Of Bonds
  The Texas Public Finance Authority may issue on behalf of the association bonds in a total amount not to exceed $75 million. Added by Acts...
• Texas Section 2203.356 - Terms Of Issuance
  (a) Bonds issued under this subchapter may be issued at a public or private sale. (b) Bonds must: (1) be issued in the name of...
• Texas Section 2203.357 - Contents Of Bond Resolution; Administration Of Accounts
  (a) In a bond resolution, the board may: (1) provide for the flow of funds and the establishment, maintenance, and investment of funds and special...
• Texas Section 2203.358 - Source Of Payment
  (a) Bonds issued under this subchapter are payable only from: (1) the surcharge fee established under Section 2203.359; or (2) other sources the association is...
• Texas Section 2203.359 - Surcharge Fee
  (a) A surcharge fee is assessed against: (1) each association member; and (2) the association. (b) The commissioner shall set the surcharge fee in an...
• Texas Section 2203.360 - Exemption From Taxation
  Bonds issued under this subchapter, any interest from the bonds, and all assets pledged to secure the payment of the bonds are exempt from taxation...
• Texas Section 2203.361 - Authorized Investments
  Bonds issued under this subchapter are authorized investments under Subchapter B, Chapter 424, and Subchapter D, Chapter 425. Added by Acts 2005, 79th Leg., Ch....
• Texas Section 2203.362 - State Pledge Regarding Bond Owner Rights And Remedies
  (a) The state pledges to and agrees with the owners of bonds issued in accordance with this subchapter that the state will not limit or...

SUBCHAPTER I APPEALS

• Texas Section 2203.363 - Payment Enforceable By Mandamus
  A writ of mandamus and any other legal or equitable remedy are available to a party in interest to require the association or another party...
• Texas Section 2203.401 - Definition
  In this subchapter, "act" includes a ruling or decision. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
• Texas Section 2203.402 - Appeal To Board Of Directors; Hearing
  (a) A person insured or applying for insurance under this chapter, the person's authorized representative, or an affected insurer that may be aggrieved by an...
• Texas Section 2203.403 - Decision Of Board Of Directors
  (a) Not later than the 10th day after the date of the hearing under Section 2203.402(b), the board of directors shall affirm, reverse, or modify...
• Texas Section 2203.404 - Appeal To Commissioner; Hearing
  (a) Not later than the 30th day after the date of the final action of the board of directors under Section 2203.403, a person insured...
• Texas Section 2203.405 - Commissioner's Decision
  (a) Not later than the 30th day after the date of the hearing under Section 2203.404, the commissioner shall affirm, reverse, or modify the appealed...

SUBCHAPTER J TRANSFER OF ASSETS; SUSPENSION OF NEW BUSINESS

• Texas Section 2203.406 - Appeal Of Commissioner's Decision
  (a) The association or a person aggrieved by an order or decision of the commissioner may appeal in accordance with Subchapter D, Chapter 36. (b)...
• Texas Section 2203.451 - Transfer Of Assets
  (a) Not later than the 90th day after the effective date of this section, the department shall complete an actuarial study to determine the amount...
• Texas Section 2203.4515 - Suspension Of New Business
  (a) Promptly after the completion of the actuarial study required by Section 2203.451, the commissioner, after notice and hearing, shall determine whether a necessity exists...
• Texas Section 2203.452 - Expiration Of Subchapter
  This subchapter expires September 1, 2017. Added by Acts 2015, 84th Leg., R.S., Ch. 321 (S.B. 18), Sec. 8, eff. September 1, 2015.

Last modified: September 28, 2016