Bill stiffens malpractice insurance regulations

House Bill 1837, sponsored by Rep. Brian Yates, “strengthens the department’s authority to act when premiums are determined to be unfair, discriminatory or inadequate,” according to a statement from Blunt’s office.

Under the bill, the department is required to establish risk-reporting categories and reporting standards for insurers, as well as to annually report malpractice insurance premiums, losses and exposures.

The department will establish and publish a market rate that reflects the average rates charged for each risk-reporting category and will publish comparisons.

Additionally, the bill creates the Health Care Stabilization Fund Feasibility Board within the department to analyze medical malpractice data and determine whether a health-care stabilization fund should be established in Missouri.

The bill gives the department’s director authority to:

• Issue a cease-and-desist order to anyone found to be violating insurance laws;

• Issue a curative order for an insurer to take other action;

• Issue a civil penalty or forfeiture order;

• Award reasonable costs of an investigation;

• Authorize fines of up to $100,000 and imprisonment of up to 10 years;

• Suspend or revoke a certificate of authority; and

• Seek redress in county circuit courts.