STATE OF OKLAHOMA

1st Session of the 53rd Legislature (2011)

HOUSE BILL 1872	By:	Morrissette

AS INTRODUCED

An Act relating to public health and safety; requiring liability insurance for nursing facilities; specifying coverage; providing for proof of coverage; directing the Oklahoma Health Care Authority to promulgate rules establishing certain form; providing exception for mandated coverage; providing for certain form; providing for suspension or revocation of license for failure to comply; providing for codification; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1903.1 of Title 63, unless there is created a duplication in numbering, reads as follows:
A.  A nursing facility shall maintain liability insurance coverage of at least Two Hundred Thousand Dollars ($200,000.00) for each occurrence of negligence.  An insurance policy or contract required under this section shall cover injury to a patient that occurs while the patient is on the premises of the nursing facility or in the care of the nursing facility.  
B.  The Oklahoma Health Care Authority shall promulgate rules providing for a standard form to be signed and dated by an insurance agent licensed in this state stating that the nursing facility has an unexpired and uncanceled insurance policy or contract of at least Two Hundred Thousand Dollars ($200,000.00) that meets the requirements of this section.  This form shall be completed annually and shall be kept in a file at the facility. 
C.  Should the nursing facility for financial reasons or for lack of availability of an underwriter willing to issue a policy be unable to secure the insurance required under subsection A of this section or should the policy limits be exhausted, the nursing facility shall notify the patient, a relative, or guardian of each patient for whom the nursing facility provides care that the liability coverage is not provided and there shall not be a ground for suspension or revocation of the nursing facility’s license under the Nursing Home Care Act.  The nursing facility shall also notify the Authority that coverage is not provided and provide the reason for same. 
D.  The Authority shall promulgate rules providing for a standard form for the facility to provide to patients, relatives, or guardians notifying the patients, relatives or guardians that the facility does not carry liability insurance for the reasons allowed in subsection C of this section.  This form shall be signed and dated by a patient, relative, or guardian and maintained in the file of the patient.  If the facility is without insurance for reasons provided for in subsection C of this section for longer than one (1) year, the facility shall update this notification form with signatures and dates annually.  In no case shall the inability to secure coverage serve to indemnify the nursing facility due to negligence.
E.  The insurance policy or contract shall be maintained at all times in an amount as required by this section, except as provided for in subsections C and D of this section.  Failure by a nursing facility to renew the policy or contract or to maintain the policy or contract in the required amount is a ground for suspension or revocation of the nursing facility license under the Nursing Home Care Act. 
SECTION 2.  This act shall become effective November 1, 2011.

53-1-6112	SDR	12/14/10