SB 1301 Requires medical malpractice insurance rates to be approved by the Director of the Department of Insurance
Sponsor:Bray Co-Sponsor(s)
LR Number:4746S.01I Fiscal Note:4746-01
Committee:Small Business, Insurance & Industrial Relations
Last Action:03/01/04 - Second Read and Referred S Small Business, Insurance Journal page:S498
and Industrial Relations Committee
Effective Date:August 28, 2004
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Current Bill Summary

SB 1301 - This act requires medical malpractice insurance rates to be approved by the Director of the Department of Insurance. The act requires the Director of the Department of Insurance to approve or disapprove rates for medical malpractice insurance.

The act sets out factors for the Director to consider including the Missouri loss experience, rather than the loss experience in other states unless the failure to do so would jeopardize the insurer's financial stability. The Director must also ensure that the rates reflect the impact of any state and federal legislation regarding tort reform or medical malpractice insurance. The insurer may charge an additional premium or grant a discount based upon the health care provider's loss experience, loss prevention measures employed, number of claims, the specialty of the provider and other factors approved by the Director. The Director must approve or disapprove rate filings within 60 days unless additional time is needed based on applicant's failure to provide information. If a rate filing is rejected, the director shall notify the insurer in writing of the rejection and indicate the rate that the Director has determined to be justified. The insurer may request a hearing to challenge the Director's decision.

The Director shall annually provide the Governor and the General Assembly a report as to the increases or decreases of the rates approved pursuant to this act.

This act is substantially similar to SB 1179 (2004).