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  Chapter 383back to chapter 383

  383.155.  Association created, when — limits of coverage — plan of operation, when due, contents of, amended, how. — 1.  A joint underwriting association may be created upon determination by the director after a public hearing that medical malpractice liability insurance is not reasonably available for health care providers in the voluntary market.  The association shall contain as members all companies authorized to write and engaged in writing, on a direct basis, any insurance or benefit, the premium for which is included under the definition of "net direct premiums".  Membership in the association shall be a condition of continued authority to do business in this state.

  2.  A plan of operation shall be adopted to be effective concurrently with the effective date of the association.

  3.  The association shall, pursuant to the provisions of sections 383.150 to 383.195 and the plan of operation, with respect to medical malpractice insurance, have the authority on behalf of its members:

  (1)  To issue, or to cause to be issued, policies of insurance to applicants, including incidental coverages and subject to limits as specified in the plan of operation but not to exceed one million dollars for each claimant under one policy and three million dollars for all claimants under one policy in any one policy year;

  (2)  To underwrite such insurance and to adjust and pay losses with respect thereto, or to appoint a service company to perform those functions;

  (3)  To assume reinsurance from its members; and

  (4)  To cede reinsurance.

  4.  Within forty-five days following the creation of the association, the directors of the association shall submit to the director for his review, a proposed plan of operation, consistent with the provisions of sections 383.150 to 383.195.

  5.  The plan of operation shall provide for economic, fair and nondiscriminatory administration and for the prompt and efficient distribution of medical malpractice insurance, and shall contain other provisions including, but not limited to, preliminary assessment of all members for initial expenses to commence operations, establishment of necessary facilities, management of the association, assessment of members to defray losses and expenses, reasonable and objective underwriting standards, acceptance and cession of reinsurance, appointment of a servicing company and procedures for determining amounts of insurance to be provided by the association.  The preliminary assessment shall be an advance to be recouped under the provisions of subsection 5 of section 383.160.

  6.  The plan of operation shall be subject to approval by the director after consultation with the members of the association, representatives of the public and other affected* individuals and organizations.  If the director disapproves all or any part of the proposed plan of operation, the directors shall within fifteen days submit for review a revised plan of operation.  If the directors fail to do so, the director shall promulgate a plan of operation or part thereof, as the case may be.  The plan of operation approved or promulgated by the director shall become effective and operational upon his order.

  7.  Amendments to the plan of operation may be made by the directors of the association, subject to the approval of the director or shall be made at his direction.


(L. 1976 H.B. 1309 § 2)

*Word "effected" appears in original rolls.

< end of effective 28 Aug 1976 >

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