HB 2256 -- Medical Malpractice Insurance

Sponsor:  Schaaf

This bill changes the laws regarding the reporting of information
related to medical malpractice insurance.  In its main
provisions, the bill:

(1)  Requires insurers providing medical malpractice insurance to
Missouri health care providers to quarterly report to the
Director of the Department of Insurance, Financial Institutions,
and Professional Registration the following information:

(a)  Written and earned premium at filed base rates;

(b)  Written and earned premium;

(c)  Written and earned exposures;

(d)  Paid and incurred losses;

(e)  Paid and incurred loss adjustment expenses;

(f)  Basic limits paid and incurred losses;

(g)  Assessments;

(h)  Loss and expense reserves, including case basis reserves,
total reserves, and basic limits reserves;

(i)  Open claims, closed claims, open occurrences, and closed
occurrences;

(j)  Cancellations and nonrenewals; and

(k)  Policies renewed and new policies issued;

(2)  Requires all collected information and data derived from the
information to be confidential unless the data meets certain
criteria.  Any employee of the department disclosing information
to a non-employee without authorization will be guilty of a class
B misdemeanor;

(3)  Requires the department by December 31, 2009, to post on its
web site the average of actual rates charged for medical
malpractice insurance.  The database may distinguish between
rates for different types of coverage;

(4)  Requires the department, beginning September 30, 2008, to
annually establish reporting standards for insurers to report
base rates for health care provider classifications and for any
modification to its base rates between annual filings.  By
January 1, 2009, and annually thereafter, the director will
publish comparisons of the base rates charged by each insurer;

(5)  Prohibits insurers from selling policies with rates which
are excessive, inadequate, or unfairly discriminatory.  Any
insurer violating this provision may be issued an administrative
order as authorized under Section 374.046, RSMo; and

(6)  Allows insurers to group risks by classifications for the
establishment of base rates and minimum premiums and to modify
actual rates based on individual risks for variations in hazards
or expense provisions.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm