SEC. 83-36-5. Joint underwriting association created; conditions of creation.
(1) The commissioner is authorized to establish a temporary joint underwriting association that shall consist of all insurers authorized to write, and engaged in writing, within this state on any basis, liability insurance as reported in the companies' annual statements.
(2) The purpose of the association shall be to provide a market for medical malpractice insurance on a self-supporting basis without subsidy from its members.
(3) The association shall not be established nor commence underwriting operations until the commissioner, after due hearing and investigation, has determined that medical malpractice insurance is not readily available for hospitals or for physicians, nurses and other personnel licensed to practice in a hospital or other health care facility licensed by the State of Mississippi. A determination that insurance is not readily available for a particular group shall be necessary before the association begins operations for that particular group. For the purposes of this chapter, if premiums for medical malpractice insurance for hospitals, physicians, nurses or other personnel who are duly licensed to practice in a hospital or other health care facility licensed by the State of Mississippi shall increase by one hundred percent (100%) within a period of thirty-six (36) months or less immediately preceding the hearing, the commissioner shall determine that medical malpractice insurance is not readily available in this state.
(4) Upon determination, the association shall be authorized to issue policies of medical malpractice insurance to hospitals, physicians, nurses or other personnel who are duly licensed to practice in a hospital or other health care facility licensed by the State of Mississippi.
(5) This chapter shall not preclude any physician, nurse, other personnel who are duly licensed to practice in a hospital or other health care facility licensed by the State of Mississippi or hospital from procuring medical malpractice insurance from any source other than the association.
(6) If the commissioner determines at any time that medical malpractice insurance can be made readily available in the voluntary market for either physicians, nurses, hospitals, or other personnel, who are duly licensed to practice in a hospital or other health care facility licensed by the State of Mississippi, the association shall then cease its underwriting operations for medical malpractice insurance that has been determined to be available in the voluntary market. The commissioner may cease all activities and close all accounts of the temporary joint underwriting association, as provided in Section 83-36-31, until the time that it is necessary to reinstate the plan under like terms and conditions.
(7) All policies issued by the association shall provide for a continuous period of coverage beginning on their respective effective dates and terminating automatically three (3) years after the effective date unless sooner terminated according to terms of the policy or this chapter. Policies shall provide that premiums shall be payable annually and may be adjusted during the coverage period.
(8) The association, pursuant to this chapter and the plan of operation with respect to medical malpractice insurance, shall have the power on behalf of its members: (a) to issue or cause to be issued policies of insurance to applicants, including incidental coverages, subject to limits, deductibles and coinsurance amounts specified in the plan of operation but not to exceed Three Hundred Thousand Dollars ($300,000.00) for each claimant under one (1) policy and One Million Dollars ($1,000,000.00) for all claimants under one (1) policy in any one (1) year; (b) to underwrite the insurance, and to adjust and pay losses with respect thereto, or to appoint service companies to perform those functions; (c) to assume reinsurance from its members; and (d) to cede reinsurance.
SOURCES: Laws, 1976, ch. 471, Sec. 3; 1987, ch. 472, Sec. 2; 1989, ch. 356, Sec. 3, eff from and after July 1, 1989, and by terms of Laws, 1987, ch. 472, Sec. 12, shall stand repealed from and after July 1, 1992. Reenacted without change, Laws, 1992, ch. 559, Sec. 2; 1994, ch. 318, Sec. 1, eff from and after passage (approved March 10, 1994)
1997 Amendment
Reenacted.
SOURCE: 1997 Laws, Chapter 406, Sec. 3, HB261, Effective July 1, 1997.