HB 1196 -- Medical Malpractice Mutual Insurance Company

Sponsor:  Behnen

This bill creates a mutual insurance company, a nonprofit
corporation, to provide medical malpractice insurance coverage to
health care professionals in the state.  The bill establishes the
Missouri Medical Malpractice Mutual Insurance Company Loan Fund,
to be administered by the State Treasurer.  The corporation will
be capitalized through a loan from this fund, from which the
corporation may borrow up to $10 million.  The corporation will
also have the authority to issue revenue bonds, not to exceed $50
million.  The interest on these bonds will be exempt from state
income tax.

The bill sets the process for creating a seven-member board of
directors to oversee the corporation and hire an executive
director.  Board members cannot be employed by, or have any
financial interest in, any hospital, health maintenance
organization, or insurance entity.  Board members will be
reimbursed for necessary expenses and may be paid a stipend of up
to $1,000 per board meeting.  Among the board's duties will be
the formulation and implementation of a program designed to
decrease medical negligence by physicians and their staff, via
training seminars.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:14 am