383.155. Association created, when--limits of coverage--plan of operation, when due, contents of, amended, how.
Association created, when--limits of coverage--plan of operation,when due, contents of, amended, how.
383.155. 1. A joint underwriting association may be createdupon determination by the director after a public hearing thatmedical malpractice liability insurance is not reasonablyavailable for health care providers in the voluntary market. Theassociation shall contain as members all companies authorized towrite and engaged in writing, on a direct basis, any insurance orbenefit, the premium for which is included under the definitionof "net direct premiums". Membership in the association shall bea condition of continued authority to do business in this state.
2. A plan of operation shall be adopted to be effectiveconcurrently with the effective date of the association.
3. The association shall, pursuant to the provisions ofsections 383.150 to 383.195 and the plan of operation, withrespect to medical malpractice insurance, have the authority onbehalf of its members:
(1) To issue, or to cause to be issued, policies ofinsurance to applicants, including incidental coverages andsubject to limits as specified in the plan of operation but notto exceed one million dollars for each claimant under one policyand three million dollars for all claimants under one policy inany one policy year;
(2) To underwrite such insurance and to adjust and paylosses with respect thereto, or to appoint a service company toperform those functions;
(3) To assume reinsurance from its members; and
(4) To cede reinsurance.
4. Within forty-five days following the creation of theassociation, the directors of the association shall submit to thedirector for his review, a proposed plan of operation, consistentwith the provisions of sections 383.150 to 383.195.
5. The plan of operation shall provide for economic, fairand nondiscriminatory administration and for the prompt andefficient distribution of medical malpractice insurance, andshall contain other provisions including, but not limited to,preliminary assessment of all members for initial expenses tocommence operations, establishment of necessary facilities,management of the association, assessment of members to defraylosses and expenses, reasonable and objective underwritingstandards, acceptance and cession of reinsurance, appointment ofa servicing company and procedures for determining amounts ofinsurance to be provided by the association. The preliminaryassessment shall be an advance to be recouped under theprovisions of subsection 5 of section 383.160.
6. The plan of operation shall be subject to approval by thedirector after consultation with the members of the association,representatives of the public and other affected* individuals andorganizations. If the director disapproves all or any part ofthe proposed plan of operation, the directors shall withinfifteen days submit for review a revised plan of operation. Ifthe directors fail to do so, the director shall promulgate a planof operation or part thereof, as the case may be. The plan ofoperation approved or promulgated by the director shall becomeeffective and operational upon his order.
7. Amendments to the plan of operation may be made by thedirectors of the association, subject to the approval of thedirector or shall be made at his direction.
(L. 1976 H.B. 1309 § 2)*Word "effected" appears in original rolls.