HB 717 -- Medical Malpractice Insurance

Sponsor:  Behnen

This bill establishes the Missouri Physicians Mutual Insurance
Company, which will operate as a public corporation and provide
medical malpractice insurance for its members.  A seven-member
board of directors, appointed by the Governor, will oversee the
company.  The bill sets forth the qualifications required for
board members.  Board members will be reimbursed for expenses,
and each member may also receive a stipend of up to $1,000 per
meeting.  The board will hire an administrator to manage the
company.  Employees of the company will be immune from personal
liability for acts performed, or obligations entered into, when
done in good faith.

The board will have control over the company's premium rates.
Any insurance producer licensed in the state may sell policies
for the company.  The administrator will formulate and implement
a program to reduce the amount of medical malpractice by
providing training seminars to physicians and their staffs.  The
board may deny insurance to physicians who refuse to attend the
training seminars.  The company will bear the cost of the
training.

The company may be capitalized by a loan of up to $10,000,000
from the state's Physicians Mutual Insurance Company Loan Fund,
which is created in the bill.  The board may also issue revenue
bonds in an amount not to exceed a principal amount of
$50,000,000.  The bill sets forth a process for the sale of the
bonds.

The board may declare cash dividends or allow credits to insureds
when the company has sufficiently built up its assets in excess
of its liabilities, necessary reserves, and a reasonable surplus
for catastrophe hazard.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:12 am