HBA-TYH, ATS H.B. 1354 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1354
By: Hartnett
Insurance
6/2/1999
Enrolled



BACKGROUND AND PURPOSE 

The Texas Medical Liability Insurance Underwriting Association (also known
as the Joint Underwriting Association or JUA) provides professional
liability insurance to Texas health care providers.  Prior to the 76th
Legislature, a health care provider aggrieved by an act, ruling, or
decision of JUA had the right to appeal to the JUA's board of directors
within 30 days of the act, ruling, or decision.  After the hearing, the
board of directors issues a final decision.  If that appeal fails, the
insured may appeal further to the commissioner of insurance.  The law did
not require the board of directors to give notice of the insured's right to
appeal within the prescribed period, although it does require the board of
directors to give at least 10 days' written notice of the time and place of
a hearing to a person requesting one.  Health care providers who were not
aware that they had 30 days to appeal the board's decision may have
forfeited their right to appeal because failure to appeal within the period
allotted bars the claim.   

H.B. 1354 requires the joint underwriting association to provide to a
person written notice of the person's right to appeal at the time the
person is notified of the association's initial act, ruling, or decision,
and at the time the person is notified of the association's final decision.
This bill also requires the commissioner of insurance (commissioner) to
provide to a person written notice of the person's right to appeal at the
time the person is notified of the commissioner's final decision. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 7, Article 21.49-3, Insurance Code, as follows:

(a) Adds a provision requiring the joint underwriting association (JUA) to
provide to a person written notice of the person's right to appeal at the
time the person is notified of JUA's act, ruling, or decision. 

(b) Adds a provision requiring JUA to provide to a person written notice of
the person's right to appeal at the time the person is notified of JUA's
final decision. 

(c) Redesignates existing Subsection (b) to this subsection.

(d) Adds a provision requiring the commissioner of insurance (commissioner)
to provide to a person written notice of the person's right to appeal at
the time the person is notified of the commissioner's final decision. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.