CHAPTER 59. MEDICAL MALPRACTICE COVERAGE FOR CERTAIN INSTITUTIONS

EDUCATION CODE

TITLE 3. HIGHER EDUCATION

SUBTITLE A. HIGHER EDUCATION IN GENERAL

CHAPTER 59. MEDICAL MALPRACTICE COVERAGE FOR CERTAIN INSTITUTIONS

SUBCHAPTER A. MEDICAL PROFESSIONAL LIABILITY

Sec. 59.01. DEFINITIONS. In this subchapter:

(1) "Medical staff or students" means medical doctors, doctors

of osteopathy, dentists, veterinarians, and podiatrists appointed

to the faculty or professional medical staff employed for student

health services by The University of Texas System, The Texas A

& M University System, the Texas Tech University Health

Sciences Center, or the University of North Texas Health Science

Center at Fort Worth , either full time or who, although

appointed less than full time (including volunteers), either

devote their total professional service to such appointment or

provide services to patients by assignment from the department

chairman; and interns, residents, fellows, and medical or dental

students, veterinary students, and students of osteopathy

participating in a patient-care program in The University of

Texas System, The Texas A & M University System, the Texas

Tech University Health Sciences Center, or the University of

North Texas Health Science Center at Fort Worth.

(2) "Medical malpractice claim" means a cause of action for

treatment, lack of treatment, or other claimed departure from

accepted standards of care which proximately results in injury to

or death of the patient, whether the patient's claim or cause of

action or the executor's claim or cause of action under Section

71.021, Civil Practice and Remedies Code, sounds in tort or

contract.

(3) "Board" means the board of regents of The University of

Texas System, the board of regents of The Texas A & M

University System, the board of regents of Texas Tech University,

or the board of regents of the University of North Texas.

(4) "Fund" means the medical professional liability fund.

(5) "Charitable care or services" means all care or services

provided for free or at discounted amounts at or below actual

costs based on the ability of the beneficiary to pay and

specifically includes all care and services provided to

beneficiaries covered by Medicare and Medicaid.

(6) "Medical and dental unit" has the meaning assigned by

Section 61.003 of this code.

Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, Sec.

1(a), eff. Sept. 1, 1983. Amended by Acts 1985, 69th Leg., ch.

117, Sec. 3(a), eff. Sept. 1, 1985; Acts 1985, 69th Leg., ch.

854, Sec. 1, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 1070,

Sec. 3, eff. May 15, 1988; Acts 1989, 71st Leg., ch. 2, Sec.

6.02(a), eff. Aug. 28, 1989; Acts 1991, 72nd Leg., ch. 832, Sec.

1, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 408, Sec. 7,

eff. Aug. 30, 1993.

Sec. 59.02. MEDICAL PROFESSIONAL LIABILITY FUND. (a) Each

board may establish a separate self-insurance fund to pay any

damages adjudged in a court of competent jurisdiction or a

settlement of any medical malpractice claim against a member of

the medical staff or students arising from the exercise of his

appointment, duties, or training with The University of Texas

System, The Texas A & M University System, the Texas Tech

University Health Sciences Center, or the University of North

Texas Health Science Center at Fort Worth.

(b) The boards may pay from the funds all expenses incurred in

the investigation, settlement, defense, or payment of claims

described above on behalf of the medical staff or students.

(c) On the establishment of each fund, transfers to the fund

shall be made in an amount and at such intervals as determined by

the board. Each board may receive and accept any gifts or

donations specified for the purposes of this subchapter and

deposit those gifts or donations into the fund. Each board may

invest money deposited in the fund, and any income received shall

be retained in the fund. The money shall be deposited in any of

the approved depository banks of The University of Texas System,

The Texas A & M University System, the Texas Tech University

Health Sciences Center, or the University of North Texas Health

Science Center at Fort Worth. All expenditures from the funds

shall be paid pursuant to approval by the boards.

Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, Sec.

1(a), eff. Sept. 1, 1983. Amended by Acts 1989, 71st Leg., ch. 2,

Sec. 6.02(a), eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 408,

Sec. 8, eff. Aug. 30, 1993.

Sec. 59.03. RULES. Each board may adopt rules for the

establishment and administration of the fund and the negotiation,

settlement, and payment of claims as necessary to carry out the

purpose of this subchapter. Each board may establish by rule

reasonable limits on the amount of claims to be paid from the

fund or to be provided in purchased insurance.

Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, Sec.

1(a), eff. Sept. 1, 1983. Amended by Acts 1989, 71st Leg., ch. 2,

Sec. 6.02(a), eff. Aug. 28, 1989.

Sec. 59.04. PURCHASE OF INSURANCE. Each board may purchase

medical malpractice insurance from an insurance company

authorized to do business in this state as it considers necessary

to carry out the purpose of this subchapter.

Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, Sec.

1(a), eff. Sept. 1, 1983. Amended by Acts 1989, 71st Leg., ch. 2,

Sec. 6.02(a), eff. Aug. 28, 1989.

Sec. 59.05. LEGAL COUNSEL. Each board may employ private legal

counsel to represent the medical staff and students covered by

this subchapter under the rules of the board.

Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, Sec.

1(a), eff. Sept. 1, 1983. Amended by Acts 1989, 71st Leg., ch. 2,

Sec. 6.02(a), eff. Aug. 28, 1989.

Sec. 59.06. LIMITATION ON APPROPRIATED FUNDS. Funds

appropriated by the legislature to either system, to the Texas

Tech University Health Sciences Center, or to the University of

North Texas Health Science Center at Fort Worth from the General

Revenue Fund may not be used to establish or maintain the fund,

to purchase insurance, or to employ private legal counsel.

Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, Sec.

1(a), eff. Sept. 1, 1983. Amended by Acts 1989, 71st Leg., ch. 2,

Sec. 6.02(a), eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 408,

Sec. 9, eff. Aug. 30, 1993.

Sec. 59.07. EXEMPTION FROM INSURANCE CODE; REPORT. The

establishment and administration of each fund under this

subchapter and the rules of the boards do not constitute the

business of insurance as defined and regulated in the Insurance

Code. However, the boards of regents shall annually report to the

State Board of Insurance information appropriate for carrying out

the functions of the State Board of Insurance.

Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, Sec.

1(a), eff. Sept. 1, 1983. Amended by Acts 1989, 71st Leg., ch. 2,

Sec. 6.02(a), eff. Aug. 28, 1989.

Sec. 59.08. STATE INDEMNIFICATION. (a) The state shall

indemnify a member of the medical staff or a student for damages

paid as required by a judgment on or settlement of a medical

malpractice claim arising out of the provision of charitable care

or services.

(b) State liability for indemnification under this section may

not exceed:

(1) $100,000 for each defendant for each occurrence; and

(2) $250,000 for each occurrence for all defendants.

(c) The state is not liable for indemnity under this section for

damages found by the trier of fact to result from fraud, malice,

or gross negligence.

(d) The state may not charge or assess a board, a medical and

dental unit, or any fund or account of a board or medical and

dental unit for any amount of indemnification paid or to be paid

by the state under this section.

(e) The attorney general is entitled to approve any settlement

of the portion of a medical malpractice claim that may result in

the state being liable for indemnification of the defendant under

this section. If the attorney general does not approve a

settlement, the state is not liable for indemnification of the

defendant under this section. The attorney general shall base the

determination on the best interests of the defendant.

(f) This section prevails over any other law, including Chapter

104, Civil Practice and Remedies Code, to the extent of any

conflict.

Added by Acts 1991, 72nd Leg., ch. 832, Sec. 2, eff. Sept. 1,

1991.

SUBCHAPTER B. VETERINARY MALPRACTICE COVERAGE PURCHASED BY TEXAS

A & M

Sec. 59.21. DEFINITIONS. In this subchapter:

(1) "Board" means the board of regents of The Texas A & M

University System.

(2) "Fund" means the veterinary medical diagnostic professional

liability fund.

(3) "Professional staff" means veterinarians, diagnosticians,

toxicologists, pathologists, microbiologists, and other

professional employees employed by the Texas Veterinary Medical

Diagnostic Laboratory, including the director.

(4) "Veterinary malpractice claim" means a cause of action for

damages resulting proximately from negligence in performing

diagnostic services, toxicological and other diagnostic analyses,

and in making recommendations for treatment.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 6.02(a), eff. Aug. 28,

1989.

Sec. 59.22. VETERINARY MEDICAL DIAGNOSTIC PROFESSIONAL LIABILITY

FUND. (a) The board may establish a separate self-insurance

fund to pay any damages adjudged in a court of competent

jurisdiction or a settlement of any veterinary malpractice claim

against a member of the professional staff arising from the

exercise of his appointment or duties with the Texas Veterinary

Medical Diagnostic Laboratory.

(b) The board may pay from the fund all expenses incurred in

amounts and at intervals determined by the board.

(c) The board may receive and accept any gifts or donations into

the fund.

(d) The board may invest money deposited in the fund, and any

income received shall be retained in the fund. The money shall be

deposited in any of the approved depository banks of The Texas A

& M University System. All expenditures from the fund shall

be paid pursuant to approval by the board.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 6.02(a), eff. Aug. 28,

1989.

Sec. 59.23. RULES. The board may adopt rules for the

establishment and administration of the fund and the negotiation,

settlement, and payment of claims as necessary to carry out the

purpose of this subchapter. The board may establish by rule

reasonable limits on the amount of claims to be paid from the

fund or to be provided in purchased insurance.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 6.02(a), eff. Aug. 28,

1989.

Sec. 59.24. PURCHASE OF INSURANCE. The board may purchase

veterinary medical malpractice insurance from an insurance

company authorized to do business in this state as it considers

necessary to carry out the purpose of this subchapter.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 6.02(a), eff. Aug. 28,

1989.

Sec. 59.25. LEGAL COUNSEL. The board may employ private legal

counsel to represent the professional staff covered by this

subchapter under the rules of the board.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 6.02(a), eff. Aug. 28,

1989.

Sec. 59.26. LIMITATION ON APPROPRIATED FUNDS. Funds

appropriated by the legislature to the Texas Veterinary Medical

Diagnostic Laboratory from the General Revenue Fund may not be

used to establish or maintain the fund, to purchase insurance, or

to employ private legal counsel.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 6.02(a), eff. Aug. 28,

1989.

Sec. 59.27. EXEMPTION FROM INSURANCE CODE; REPORT. The

establishment and administration of the fund under this

subchapter and the rules of the board do not constitute the

business of insurance as defined and regulated in the Insurance

Code. However, the board shall annually report to the State Board

of Insurance information appropriate for carrying out the

functions of the State Board of Insurance.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 6.02(a), eff. Aug. 28,

1989.

Sec. 59.28. ADDITIONAL COMPENSATION. Malpractice liability

coverage authorized by this subchapter is provided as additional

compensation to the professional staff.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 6.02(a), eff. Aug. 28,

1989.