Senate Bill No. 502
(By Senators Rowe, Hunter, White and Fanning)
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[Introduced February 12, 2003; referred to the Committee on
Banking and Insurance; and then to the Committee on Finance.]
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A BILL to amend article twenty-b, chapter thirty-three of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
eight-a, relating to establishing the medical malpractice
insurance excess premium rebate act of two thousand three.
Be it enacted by the Legislature of West Virginia:
That article twenty-b, chapter thirty-three of the code of
West Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
eight-a, to read as follows:
ARTICLE 20B. RATES AND MALPRACTICE INSURANCE POLICIES.
§33-20B-8a. Medical malpractice insurance excess rebate act of
two thousand three.
(a) This section shall be known and may be cited as the
"Medical Malpractice Insurance Excess Premium Rebate Act of 2003." (b) Insurance companies, mutual companies, the board of risk
management or other entities providing medical malpractice
liability coverage in this state which is underwritten after the
effective date of this section, shall rebate to insureds any
premiums or receipts for that coverage realized in the calendar
years of two thousand four, two thousand five, two thousand six and
two thousand seven in amounts which, for all years considered in
the aggregate, exceed a sum which is twenty percent over the costs
for that coverage provided in the state, including liability
payments and reasonable administrative, underwriting defense and
other costs of that coverage in those years as determined by the
insurance commissioner.
(c) Insureds who have had successful claims for medical
malpractice presented against their coverage in those same years
referred to in subsection (a) of this section are not entitled to
a rebate.
(d) The rebates are due to insureds on or before the first day
of July, two thousand eight, in amounts to be calculated on a pro
rata basis, in the same proportionate share of excess profits or
receipts as the share of an insured's premium payments in those
years represents to the total amount of all premiums paid in this
state by all health care providers of the insuring entity in those
same years.
(e) The insurance commissioner may require bonds in amounts sufficient to assure timely payments of the rebates required by
this section.
(f) The insurance commissioner shall require annual reports of
premiums and costs referred to in this section and shall promulgate
rules, including emergency rules for immediate implementation of
this section.
NOTE: The purpose of this bill is to establish the "Medical
Malpractice Insurance Excess Premium Rebate Act of 2003."
This section is new; therefore, strike-throughs and
underscoring have been omitted.