11890-11892

INSURANCE CODE
SECTION 11890-11892




11890.  As used in this chapter:
   (a) "Long-term health care facility" has the same meaning as that
term is defined in Section 1418 of the Health and Safety Code.
   (b) "Residential care facilities for the elderly" has the same
meaning as that term is defined in Section 1569.2 of the Health and
Safety Code.


11891.  (a) If the commissioner finds after a public hearing that
liability insurance for long-term health care facilities, residential
care facilities for the elderly, or physicians who provide or
oversee the provision of services to residents in long-term health
care facilities or residential care facilities for the elderly is not
readily available in the voluntary insurance market, and that the
public interest requires this availability, the commissioner may
authorize the formation of a market assistance program to assist in
securing that insurance for long-term health care facilities,
residential care facilities for the elderly, or physicians who
provide or oversee the provision of services to residents in
long-term health care facilities or residential care facilities for
the elderly. The commissioner may require insurers, agents, and
brokers to attend public hearings and meetings concerning either the
need for a market assistance program or the organization and
formation of a program. The commissioner may also assist in securing
insurance for long-term health care facilities, residential care
facilities for the elderly, or physicians who provide or oversee the
provision of services to residents in long-term health care
facilities or residential care facilities for the elderly for which
commercial liability insurance is not readily available by forming a
risk pooling arrangement as permitted by the Federal Liability Risk
Retention Act of 1986.
   (b) The commissioner may develop appropriate standards and
regulations to implement the market assistance program and risk
pooling arrangement authorized by this section.



11892.  (a) The commissioner may order the creation of an
unincorporated, not-for-profit, temporary joint underwriting
association for liability insurance, constituting a legal entity
separate and distinct from all its members. The purpose of the
association shall be to provide a market for liability insurance on a
self-supporting basis, without subsidy from association members.
   (b) If the commissioner determines after a public hearing that
liability insurance for long-term health care facilities, residential
care facilities for the elderly, or physicians who provide or
oversee the provision of services to residents in long-term health
care facilities or residential care facilities for the elderly is
readily available through the voluntary market, the association
created pursuant to subdivision (a) shall cease its underwriting
operations.
   (c) The commissioner may develop appropriate standards and
regulations to implement the joint underwriting association
authorized by this section.