Bill Text: TX SB617 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to the operation of certain self-insurance trusts for health care liability claims; requiring a certificate of authority to engage in the business of insurance.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2015-02-23 - Referred to Business & Commerce [SB617 Detail]

Download: Texas-2015-SB617-Introduced.html

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84R9038 PMO-D
By: Burton S.B. No. 617

A BILL TO BE ENTITLED
AN ACT
relating to the operation of certain self-insurance trusts for
health care liability claims; requiring a certificate of authority
to engage in the business of insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2212.002, Insurance Code, is amended to
read as follows:
Sec. 2212.002. TRUST [NOT] ENGAGED IN BUSINESS OF
INSURANCE. A trust is [not] engaged in the business of writing
professional liability insurance for members of the profession
licensed to practice medicine or dentistry and is governed by
[under] this code and other laws of this state, and this code,
including Subtitle B, Title 10, applies [, other than this chapter,
does not apply] to the trust[, except as provided by Section
2212.052].
SECTION 2. Sections 2212.052 and 2212.053, Insurance Code,
are repealed.
SECTION 3. (a) In order to continue operating after the
effective date of this Act, a trust operating under Chapter 2212,
Insurance Code, shall prepare and not later than January 1, 2016,
submit to the commissioner of insurance a transition plan requiring
the trust to obtain a certificate of authority to engage in the
business of writing professional liability insurance in this state
and be organized under and governed by the laws of this state. The
transition plan must ensure that contractual obligations of the
trust are fulfilled.
(b) Not later than September 1, 2016, the commissioner of
insurance shall by rule adopt or modify the transition plan to
provide for the orderly transition of the operations of the trust
under this Act.
(c) Not later than January 1, 2017, the commissioner of
insurance shall take any action necessary to reflect the fact that,
as of January 1, 2017, the trust is an insurance company writing
professional liability insurance organized under and governed by
the laws of this state.
SECTION 4. (a) Section 2 of this Act takes effect January 1,
2017.
(b) Except as provided by Section 3 of this Act and
Subsection (a) of this section, this Act takes effect September 1,
2015.