2012 -- H 7776

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LC01700

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO INSURANCE

     Introduced By: Representatives Tanzi, Kennedy, and Nunes

     Date Introduced: February 16, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 27-16-2.6 of the General Laws in Chapter 27-16 entitled

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"Unauthorized Insurance Business" is hereby amended to read as follows:

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     27-16-2.6. Hospitals affiliated with accredited medical schools -- Indemnification of

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personnel. -- Nothing in sections 27-16-1.2 -- 27-16-2.2 shall be construed to limit or prevent

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hospitals affiliated with an accredited medical school from agreeing to indemnify hospital

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employees, and physicians, including physicians' incorporated or unincorporated practices and

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employees, and medical, nursing, or allied health students affiliated with the hospital, collectively

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"covered persons", for the legal liability of those covered persons for loss, damage, or expense

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incident to claims of bodily injury or death arising out of medical malpractice or professional

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error or mistake, "malpractice coverage", whether the hospital charges the covered persons for

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malpractice coverage or not. The hospitals making the agreements shall be required to establish

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and maintain a reserve fund with which the malpractice coverage will be provided, which may be

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either part of or separate from a self-insurance fund maintained by or on behalf of the hospital.

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Any self-insurance fund shall annually provide a certified financial statement with actuarial

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projections as to the soundness of its reserving to the director of the department of health and the

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director of the department of business regulation. The malpractice coverage provided by the

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agreements shall be in amounts which meet the minimum insurance coverage limits required by

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any regulation promulgated by the director of business regulation pursuant to section 42-14.1-2 or

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any regulation promulgated thereunder.

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     SECTION 2. Section 42-14.1-2 of the General Laws in Chapter 42-14.1 entitled

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"Department of Business Regulation - Medical Malpractice Insurance" is hereby amended to read

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as follows:

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     42-14.1-2. Malpractice insurance. -- (a) The director of business regulation shall

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promulgate rules and regulations requiring all All licensed physicians, physician assistants, nurse

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practitioners, dentists, and podiatrists involved in the clinical practice of medicine to include

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clinical radiology, pathology and or laboratory medicine shall maintain medical and dental

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professional and all licensed health care providers to be covered by professional liability

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insurance insuring the practitioner for claims of bodily injury or death arising out of malpractice,

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professional error, or mistake. The director of the department of business regulation health is

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hereby authorized to promulgate regulations establishing the minimum insurance coverage limits

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which shall be required; provided, however, that such limits shall not be less than one hundred

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thousand dollars ($100,000) one million dollars ($1,000,000) for claims arising out of the same

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professional service and three hundred thousand dollars ($300,000) three million dollars

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($3,000,000) in the aggregate. The director of the department of business regulation health is

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further authorized to establish rules and regulations allowing persons or entities with sufficient

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financial resources to be self-insurers. Indemnification by a hospital under section 27-16-2.6 shall

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satisfy the requirements of this section

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      (b) Every licensed health care provider in direct patient care within a licensed hospital

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shall obtain liability insurance in a minimum amount determined by the board of trustees of that

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hospital.

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     SECTION 3. This act shall take effect upon passage.

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LC01700

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO INSURANCE

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     This act would transfer authority to require that health care professionals and nursing

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homes have professional liability insurance from the department of business regulation to the

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department of health. This act would not affect the department of business regulation’s

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jurisdiction over medical malpractice insurers.

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     This act would take effect upon passage.

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LC01700

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