This is an informational bulletin to apprise you of legislation that affects the filing of forms, rules and rates for medical professional liability insurance for for-profit nursing homes.
The 77th Legislature enacted Senate Bill 1839 that, among other things, relates to medical professional liability insurance for for-profit nursing homes. The bill amended the Texas Insurance Code (TIC), Article 5.15-1, Professional Liability Insurance for Physicians and Health Care Providers. For-profit nursing homes are now defined as a category of health care provider in Section 2, Definitions, of Article 5.15-1, TIC. Under 5.15-1, Section 4, and per Article 5.13-2, policy forms and endorsements for for-profit nursing homes are now required to be filed for approval and rules and rates are file and use. The legislation became effective June 15, 2001.
Policy forms, rules, and rates for medical professional liability insurance for for-profit nursing homes were not previously subject to filing. Insurers that have not filed these forms, rules, and rates previously and that intend to provide such coverage should refer to the Texas Property and Casualty, Filings Made Easy, for questions concerning filing requirements. It is available on the Texas Department of Insurance web site at:
http://www.tdi.state.tx.us/company/rspceasy.html
SB 1839 also added Article 5.15-4 to the Insurance Code which requires the Commissioner of Insurance to adopt best practices for risk management and loss control that may be used by for-profit and not-for-profit nursing homes. Article 5.15-4 further provides that a nursing home's adoption and implementation of these best practices may be considered by an insurance company in determining rates for professional liability insurance applicable to a for-profit or not-for-profit nursing home. Commissioner's Order No. 01-1132 adopts new 28 TAC Division 9, §§5.1740-5.1741, Best Practices for Risk Management and Loss Control for For-Profit and Not-For-Profit Nursing Homes effective December 20, 2001. For information regarding these "Best practices", please visit our website at:
http://www.tdi.state.tx.us/commish/nursing.html
Questions regarding this bulletin may be addressed to:
Texas Department of Insurance
Kenneth P. McDaniel
Commercial Property/Casualty Section
P.O. Box 149104, MC 104 PC
Austin, Texas 78714-9104
512-322-3445
Ken.McDaniel@tdi.state.tx.us
Sincerely,
Marilyn Hamilton, Associate Commissioner
Property & Casualty Program MC 104-PC