ENROLLED
Senate Bill No. 619
(By Senators Minard and Jenkins)
____________
[Passed March 7, 2006; in effect ninety days from passage.]
____________
AN ACT to amend and reenact §33-20F-5 of the Code of West Virginia,
1931, as amended, relating to the governance and organization
of the West Virginia Physicians' Mutual Insurance Company; and
removing a restriction limiting service on the board of
directors of the company to two consecutive terms.
Be it enacted by the Legislature of West Virginia:
That §33-20F-5 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 20F. PHYSICIANS' MUTUAL INSURANCE COMPANY.
§33-20F-5. Governance and organization.
(a) (1) The Board of Risk and Insurance Management shall
implement the initial formation and organization of the company as
provided by this article.
(2) From the first day of July, two thousand three, until the
thirtieth day of June, two thousand four, the company shall be governed by a provisional board of directors consisting of the
members of the Board of Risk and Insurance Management, the Dean of
the West Virginia University School of Medicine or a physician
representative designated by him or her and five physician
directors elected by the policyholders whose policies are to be
transferred to the company pursuant to section nine of this
article.
(3) Only physicians who are licensed to practice medicine in
this state pursuant to article three or fourteen, chapter thirty of
this code and who have purchased medical professional liability
coverage from the Board of Risk and Insurance Management are
eligible to serve as physician directors on the provisional board
of directors. One of the physician directors shall be selected
from a list of three physicians nominated by the West Virginia
Medical Association. The Board of Risk and Insurance Management
shall develop procedures for the nomination of the remaining
physician directors and for the conduct of the election, to be held
no later than the first day of June, two thousand three, of all of
the physician directors, including, but not limited to, giving
notice of the election to the policyholders. These procedures
shall be exempt from the provisions of article three, chapter
twenty-nine-a of this code.
(b) From the first day of July, two thousand four, the company
shall be governed by a board of directors consisting of eleven directors, as follows:
(1) Five directors who are physicians licensed to practice
medicine in this state by the Board of Medicine or the Board of
Osteopathy, including at least one general practitioner and one
specialist: Provided, That only physicians who have purchased
medical professional liability coverage from the Board of Risk and
Insurance Management are eligible to serve as physician
representatives on the company's first board of directors;
(2) Three directors who have substantial experience as an
officer or employee of a company in the insurance industry;
(3) Two directors with general knowledge and experience in
business management who are officers and employees of the company
and are responsible for the daily management of the company; and
(4) One director who is a dean of a West Virginia school of
medicine or osteopathy or his or her designated physician
representative. This director's position shall rotate annually
among the Dean of the West Virginia University School of Medicine,
the Dean of the Marshall University Joan C. Edwards School of
Medicine and the Dean of the West Virginia School of Osteopathic
Medicine. This director shall serve until such time as the moneys
loaned to the company from the West Virginia Tobacco Settlement
Medical Trust Fund have been replenished as provided in subsection
(e), section four of this article. After the moneys have been
replenished to the West Virginia Tobacco Settlement Medical Trust Fund, this director shall be a physician licensed to practice
medicine in this state by the Board of Medicine or the Board of
Osteopathy.
(c) In addition to the eleven directors required by subsection
(b) of this section, the bylaws of the company may provide for the
addition of at least two directors who represent an entity or
institution which lends or otherwise provides funds to the company.
(d) The directors and officers of the company are to be chosen
in accordance with the articles of incorporation and bylaws of the
company. The initial board of directors selected in accordance
with the provisions of subdivision (3), subsection (a) of this
section shall serve for the following terms: (1) Three for
four-year terms; (2) three for three-year terms; (3) three for
two-year terms; and (4) two for one-year terms. Thereafter, the
directors shall serve staggered terms of four years. If an
additional director is added to the board as provided in subsection
(c) of this section, his or her initial term shall be for four
years.
(e) The incorporators are to prepare and file articles of
incorporation and bylaws in accordance with the provisions of this
article and the provisions of this chapter and chapter thirty-one
of this code.