Section 1. That sections 3903.28 and 3903.32 be amended and | 12 |
sections 3929.62, 3929.63, 3929.631, 3929.632, 3929.64, 3929.65, | 13 |
3929.66, 3929.661, 3929.67, 3929.68, 3929.681, 3929.682, 3929.69, | 14 |
and 3929.70 of the Revised Code be enacted to read as follows: | 15 |
Sec. 3903.28. (A)(1) A preference is a transfer of any of | 16 |
the property of an insurer or of an interest in the property of an | 17 |
insurer to or for the benefit of a creditor,
for or on account of | 18 |
an antecedent debt, made or suffered by the
insurer within one | 19 |
yeartwo years before the filing of a successful
complaint for | 20 |
liquidation under sections 3903.01 to 3903.59 of
the Revised Code, | 21 |
the effect of which transfer may be to enable
the creditor to | 22 |
obtain a greater percentage of his debt than another creditor of | 23 |
the same class would receive. If
a liquidation order is entered | 24 |
while the insurer is already subject
to a rehabilitation order, | 25 |
then such transfer shall be deemed
preferences if made or suffered | 26 |
within one year
before the filing of the successful complaint for | 27 |
rehabilitation,
or within two years before the filing of the | 28 |
successful complaint
for liquidation, whichever time is shorter | 29 |
date that enables the creditor to receive more than the creditor | 30 |
would receive if the insurer was liquidated under this chapter, | 31 |
the transfer had not been made, and the creditor received payment | 32 |
of the debt to the extent provided by the provisions of this | 33 |
chapter. | 34 |
(ii) A person, including but not limited to an employee or | 47 |
attorney or other person, who was in fact in a
position of | 48 |
comparable influence into effect a level of control over the | 49 |
actions of the insurer comparable to that of an officer
or | 50 |
director whether or not hethe person held
such position, or any | 51 |
but excluding employees of the department of insurance and any | 52 |
person retained or appointed by the department to assist in the | 53 |
examination, supervision, or other regulation or monitoring of the | 54 |
insurer; | 55 |
(3) Where the preference is voidable, the liquidator may | 62 |
recover the property or the value of the property from the initial | 63 |
transferee, and if itthe property has been transferred or | 64 |
converted, itsthe liquidator may recover the property or the | 65 |
value of the property from
any person who has received or | 66 |
converted the property, except
that a subsequent bona fide | 67 |
purchaser or lienor who has given consideration
of less than fair | 68 |
equivalent value has a lien upon the property
to the extent of the | 69 |
consideration actually given. Where a
preference by way of lien or | 70 |
security title is voidable, the
court may on due notice order the | 71 |
such lien or title to beis preserved
for the benefit of the | 72 |
estate, in which event the lien or title
shall pass to the | 73 |
liquidator. | 74 |
(C)(1) A lien obtainable by legal or equitable proceedings | 111 |
upon a simple contract is one arising in the ordinary course of | 112 |
such proceedings upon the entry or docketing of a judgment or | 113 |
decree, or upon attachment, garnishment, execution, or like | 114 |
process, whether before, upon, or after judgment or decree and | 115 |
whether before or upon levy. It does not include liens which
under | 116 |
applicable law are given a special priority over other
liens which | 117 |
are prior in time. | 118 |
(2) A lien obtainable by legal or equitable proceedings is | 119 |
superior to the rights of a transferee, or a purchaser may obtain | 120 |
rights superior to the rights of a transferee within the meaning | 121 |
of division (B) of this section, if such consequences follow only | 122 |
from the lien or purchase itself, or from the lien or purchase | 123 |
followed by any step wholly within the control of the respective | 124 |
lienholder or purchaser, with or without the aid of ministerial | 125 |
action by public officials. Such a lien is not, however,
superior | 126 |
and such a purchase does not create superior rights for
the | 127 |
purpose of division (B) of this section through any acts | 128 |
subsequent to the obtaining of such a lien or subsequent to such
a | 129 |
purchase which require the agreement or concurrence of any
third | 130 |
party or which require any further judicial action or
ruling. | 131 |
(D) A transfer of property for or on account of a new and | 132 |
contemporaneous consideration that is deemed under division (B)
of | 133 |
this section to be made or suffered after the transfer because
of | 134 |
delay in perfecting it does not thereby become a transfer for
or | 135 |
on account of an antecedent debt if any acts required by the | 136 |
applicable law to be performed in order to perfect the transfer
as | 137 |
against liens or bona fide purchasers' rights are performed
within | 138 |
twenty-one days or any period expressly allowed by the
law, | 139 |
whichever is less. A transfer to secure a future loan, if
such a | 140 |
loan is actually made, or a transfer which becomes
security for a | 141 |
future loan, has the same effect as a transfer for
or on account | 142 |
of a new and contemporaneous consideration. | 143 |
(E) If any lien deemed voidable under division (A)(2) of
this | 144 |
section has been dissolved by the furnishing of a bond or
other | 145 |
obligation, the surety on which has been indemnified
directly or | 146 |
indirectly by the transfer of or the creation of a
lien upon any | 147 |
property of an insurer before the filing of a
complaint under | 148 |
sections 3903.01 to 3903.59 of the Revised Code
which results in a | 149 |
liquidation orderdate, the indemnifying transfer
or lien is also | 150 |
deemed voidable. | 151 |
(F) The property affected by any lien deemed voidable
under | 152 |
divisions (A) and (E) of this section is discharged from
such | 153 |
lien, and that property and any of the indemnifying property | 154 |
transferred to or for the benefit of a surety passes to the | 155 |
liquidator, except that the court may on due notice order any
such | 156 |
lien to be preserved for the benefit of the estate and the
court | 157 |
may direct that such conveyance be executed as may be
proper or | 158 |
adequate to evidence the title of the liquidator. | 159 |
(G) The Franklin county court of common pleas has
exclusive | 160 |
jurisdiction of any proceeding initiated by the liquidator filed | 161 |
in the state to
hear and determine the rights of any parties under | 162 |
this section.
Reasonable notice of any hearing in the proceeding | 163 |
shall be given
to all parties in interest, including the obligee | 164 |
of a releasing
bond or other like obligation. Where an order is | 165 |
entered for the
recovery of indemnifying property in kind or for | 166 |
the avoidance of
an indemnifying lien, the court, upon motion of | 167 |
any party in
interest, shallmay in the same proceeding ascertain | 168 |
the value of the
property or lien, and if the value is less than | 169 |
the amount for
which the property is indemnity or than the amount | 170 |
of the lien,
the transferee or lienholder may elect to retain the | 171 |
property or
lien upon payment of its value, as ascertained by the | 172 |
court, to
the liquidator, within such reasonable times as the | 173 |
court shall
fix. | 174 |
(J) If an insurer shall, directly or indirectly, within
four | 187 |
monthsone hundred twenty days before the filing of a successful | 188 |
complaint for
liquidation under sections 3903.01 to 3903.59 of the | 189 |
Revised
Codedate, or at any time in contemplation of a proceeding | 190 |
to
liquidate it, pay money or transfer property to an | 191 |
attorney-at-law for services rendered or to be rendered, the | 192 |
transaction may be examined by the court on its own motion or | 193 |
shall be examined by the court on motion of the liquidator and | 194 |
shall be held valid only to the extent of a reasonable amount to | 195 |
be determined by the court, and the excess may be recovered by
the | 196 |
liquidator for the benefit of the estate provided that where
the | 197 |
attorney is in a position of influence in the insurer or an | 198 |
affiliate thereof, payment of any money or the transfer of any | 199 |
property to the attorney-at-law for services rendered or to be | 200 |
rendered shall be governed by the provisions of division (A)(2)
of | 201 |
this section. | 202 |
(K)(1) Every officer, manager, employee, shareholder,
member, | 203 |
subscriber, attorney, or any other person acting on
behalf of the | 204 |
insurer who knowingly participates in giving any
preference when | 205 |
he has reasonable cause to
believe the insurer is or is about to | 206 |
become insolvent at the time of the
preference shall be personally | 207 |
liable to the liquidator for the amount of
the preference. It | 208 |
shall be presumed that there is reasonable
cause to so believe if | 209 |
the transfer was made within four months
before the date of filing | 210 |
of the successful complaint for
liquidation. | 211 |
(1) "Complaint date" means the date on which a complaint is | 232 |
filed by the superintendent of insurance seeking the liquidation | 233 |
of an insurer, if the complaint results in an order of | 234 |
liquidation. If the insurer is placed in rehabilitation, which | 235 |
rehabilitation is later converted to liquidation, the "complaint | 236 |
date" is the date on which the original complaint seeking | 237 |
rehabilitation was filed. | 238 |
(2) "New value" means money or money's worth in goods, | 239 |
services, new credit, or the release by a transferee of property | 240 |
previously transferred to the transferee in a transaction that is | 241 |
neither void nor voidable by the liquidator under any applicable | 242 |
law, including the proceeds of the transferred property, but does | 243 |
not include an obligation substituted for an existing obligation. | 244 |
Sec. 3903.32. The amount recoverable by the liquidator from | 245 |
reinsurers shall
not be reduced as a result of delinquency | 246 |
proceedings, regardless of any
provision in the reinsurance | 247 |
contract or other agreement. Payment made
by a reinsurer
directly | 248 |
to an insured or other creditor does not diminish the reinsurer's | 249 |
obligation to the insurer's estate except when the reinsurance | 250 |
contract
or other written agreement either
provides
for direct | 251 |
payment
of the
reinsurance to the insured or beneficiary of the | 252 |
insurance
policy in the event of the
insolvency of the ceding | 253 |
insurer or provides for payment to a third party and has received | 254 |
the prior written approval of the superintendent of insurance. | 255 |
(C) "Medical liability insurance" means insurance coverage | 265 |
against the legal liability of the insured and against loss, | 266 |
damage, or expense incident to a claim arising out of the death, | 267 |
disease, or injury of any person as the result of negligence or | 268 |
malpractice in rendering professional service or related to the | 269 |
credentialing or accreditation of any medical professional or | 270 |
hospital by any licensed physician, podiatrist, or hospital, as | 271 |
those terms are defined in section 2305.113 of the Revised Code, | 272 |
or any employee or agent acting within the scope of their duties | 273 |
for a physician, podiatrist, or hospital. | 274 |
(1) A substantial number of applicants for such class or | 281 |
classes of medical liability insurance have not been placed with | 282 |
insurers authorized to write medical liability insurance in this | 283 |
state, and are insurable risks. For purposes of this section, | 284 |
"insurable risk" means that the physician, podiatrist, or hospital | 285 |
is licensed, certified, or accredited as required by law. | 286 |
(1) Issue or cause to be issued policies of insurance to | 291 |
applicants, including incidental coverages, subject to terms, | 292 |
conditions, exclusions, and limits, established by the medical | 293 |
liability underwriting association's board of governors subject to | 294 |
the superintendent's approval. Coverages under such policies may | 295 |
be made available as primary or excess protection, provided limits | 296 |
of primary protection under one policy shall not exceed one | 297 |
million dollars for each claim and three million dollars in any | 298 |
year unless otherwise provided for in the plan of operation. | 299 |
Sec. 3929.631. (A) In the event the superintendent of | 305 |
insurance creates the medical liability underwriting association | 306 |
under section 3929.63 of the Revised Code or reactivates the | 307 |
medical liability underwriting association under section 3929.632 | 308 |
of the Revised Code, the superintendent also shall create a | 309 |
stabilization reserve fund for the medical liability underwriting | 310 |
association under Chapter 119. of the Revised Code. The | 311 |
stabilization reserve fund shall be administered by thirteen | 312 |
directors, one of whom shall be the superintendent of insurance or | 313 |
the superintendent's deputy. The remaining twelve directors shall | 314 |
be appointed by the superintendent. Of these twelve directors, | 315 |
five shall be doctors of medicine and surgery, two shall be | 316 |
doctors of osteopathic medicine and surgery, one shall be a doctor | 317 |
of podiatric medicine, and four shall be representatives of | 318 |
hospitals. | 319 |
(B) The directors shall act by majority vote with seven | 320 |
directors constituting a quorum for the transaction of any | 321 |
business or the exercise of any power of the stabilization reserve | 322 |
fund. The directors shall serve without salary, but each director | 323 |
shall be reimbursed for actual and necessary expenses incurred in | 324 |
the performance of official duties as a director of the | 325 |
stabilization reserve fund. The directors are not subject to any | 326 |
personal liability with respect to administration of the fund. | 327 |
(C) Each policyholder of the medical liability underwriting | 328 |
association shall pay to the medical liability underwriting | 329 |
association annually a stabilization reserve fund charge. The | 330 |
charge shall be determined by the directors with the agreement of | 331 |
the board of governors of the medical liability underwriting | 332 |
association, subject to the approval of the superintendent. In the | 333 |
event that there is no agreement among the directors, the board of | 334 |
governors, and the superintendent as to the charge, the | 335 |
superintendent shall determine the charge. The amount of the | 336 |
charge may differentiate between types of coverage, but shall be | 337 |
sufficient to ensure that the medical liability underwriting | 338 |
association is actuarially sound, adequately reserved, financially | 339 |
stable, and efficiently managed so as to satisfy the purposes of | 340 |
sections 3929.62 to 3929.70 of the Revised Code. The medical | 341 |
liability underwriting association shall cancel the policy of any | 342 |
policyholder who fails to pay the stabilization reserve fund | 343 |
charge. | 344 |
(E) All money received by the stabilization reserve fund | 349 |
shall be held in trust by a corporate trustee selected by the | 350 |
directors. The corporate trustee may invest the money held in | 351 |
trust, subject to the approval of the directors. All investment | 352 |
income shall be credited to the stabilization reserve fund. All | 353 |
expenses of administration of the stabilization reserve fund shall | 354 |
be charged against the stabilization reserve fund. The money held | 355 |
in trust shall be used for the purpose of reimbursing the medical | 356 |
liability underwriting association for any deficit that arises out | 357 |
of the operations of the medical liability underwriting | 358 |
association and for any other purpose that is approved by the | 359 |
board of directors, if the purpose is reasonably consistent with | 360 |
the purposes of the association. Such payment to the medical | 361 |
liability underwriting association shall be made by the directors | 362 |
upon the medical liability underwriting association's | 363 |
certification to the directors of the amount due. | 364 |
(F) If the board of governors determines that the moneys | 365 |
contained in the stabilization reserve fund at the end of a fiscal | 366 |
year, exclusive of dollars allocated for pending claims and after | 367 |
payment of all claims and expenses, are in excess of amounts that | 368 |
are necessary to ensure that the medical liability underwriting | 369 |
association is actuarially sound, adequately reserved, financially | 370 |
stable, and efficiently managed as to satisfy the purposes of | 371 |
sections 3929.62 to 3929.70 of the Revised Code, and the | 372 |
superintendent concurs, the superintendent shall cause the return | 373 |
of the excess fund moneys to applicants that have contributed to | 374 |
the fund and that are not medical liability underwriting | 375 |
association policyholders at the end of the fiscal year. In | 376 |
effectuating the return of fund moneys, the superintendent shall | 377 |
ascertain the total amount contributed to the fund by each | 378 |
applicant during the entire period of the fund's existence. Within | 379 |
a reasonable time period not to exceed one year, the | 380 |
superintendent shall remit to each eligible applicant an amount | 381 |
that bears the same ratio to the total amount of excess fund | 382 |
moneys as the total amount contributed to the fund by each | 383 |
applicant bears to the total amount contributed to the fund by all | 384 |
applicants. Notwithstanding the return of moneys under this | 385 |
division, policyholders shall continue to be subject to the | 386 |
charges of the stabilization reserve fund under this section. The | 387 |
total amount to be returned under this division shall reflect any | 388 |
interest actually earned by the fund less fund operating expenses. | 389 |
Sec. 3929.632. (A) The medical liability underwriting | 390 |
association created under section 3929.63 of the Revised Code may | 391 |
be dissolved, or its operations may be suspended, by rule of the | 392 |
superintendent of insurance adopted pursuant to Chapter 119. of | 393 |
the Revised Code, upon a finding by the superintendent that the | 394 |
circumstances described in division (A) of section 3929.63 of the | 395 |
Revised Code no longer exist, or if the superintendent finds that | 396 |
the continued operation of the medical liability underwriting | 397 |
association undermines its statutory purpose or threatens its | 398 |
ability to meet its contractual obligations. | 399 |
(B) In the case of any dissolution or suspension under | 400 |
division (A) of this section, the superintendent shall adopt rules | 401 |
pursuant to Chapter 119. of the Revised Code that establish | 402 |
standards and procedures for the fair and equitable cessation or | 403 |
suspension of operations, including rules that ensure the payment | 404 |
of all claims on policies issued and expenses incurred by the | 405 |
medical liability underwriting association. Rules adopted under | 406 |
this section may include rules relating to reinsurance. The | 407 |
remaining funds of the medical liability underwriting association | 408 |
shall be used for funding the medical liability underwriting | 409 |
association or for funding another medical malpractice initiative | 410 |
with the approval of the general assembly. | 411 |
Sec. 3929.64. (A)(1) A board of governors consisting of nine | 428 |
members shall govern the medical liability underwriting | 429 |
association. The members shall be appointed by the governor with | 430 |
the advice of the superintendent of insurance. Five shall be | 431 |
selected from insurers licensed to write and writing liability | 432 |
insurance in this state, at least two of which insurers must write | 433 |
medical liability insurance in this state. One shall be a licensed | 434 |
physician and one shall be from a hospital operating in this | 435 |
state. One shall be an insurance agent licensed and writing | 436 |
medical liability insurance in this state. One shall represent the | 437 |
interests of consumers and shall neither be a member of, or | 438 |
associated with, a health insuring corporation holding a | 439 |
certificate of authority under Chapter 1751. of the Revised Code | 440 |
or an insurance company. The members of the board of governors | 441 |
shall serve without compensation but shall be reimbursed for their | 442 |
actual and necessary expenses incurred in the discharge of their | 443 |
official duties. The directors of the stabilization reserve fund | 444 |
shall serve as ex officio members of the medical liability | 445 |
underwriting association's board of governors. | 446 |
(2) Of the initial member appointments made under division | 447 |
(A)(1) of this section, three shall be for terms of one year, | 448 |
three shall be for terms of two years, and three shall be for | 449 |
terms of three years, with the members' terms determined from the | 450 |
date the medical liability underwriting association is created | 451 |
under section 3929.63 of the Revised Code. Thereafter, terms of | 452 |
office for appointed members shall be for three years, each term | 453 |
ending on the same day of the same month of the year as did the | 454 |
term it succeeds. A vacancy shall be filled in the same manner as | 455 |
the original appointment. Members may be reappointed to the board | 456 |
of governors. | 457 |
Sec. 3929.65. (A)(1) Within forty-five days after the | 462 |
creation or a reactivation of the medical liability underwriting | 463 |
association, the board of governors of the medical liability | 464 |
underwriting association shall submit to the superintendent of | 465 |
insurance, for the superintendent's review, a proposed plan of | 466 |
operation consistent with sections 3929.62 to 3929.70 of the | 467 |
Revised Code. The superintendent may adopt this plan by rule | 468 |
promulgated in accordance with Chapter 119. of the Revised Code. | 469 |
If the superintendent does not adopt the plan within thirty days | 470 |
of its submission, the superintendent shall formulate a plan of | 471 |
operation consistent with sections 3929.62 to 3929.70 of the | 472 |
Revised Code. Subsequent to the termination of the thirty-day | 473 |
period, the superintendent shall establish the plan by rule in the | 474 |
minimum time permitted by Chapter 119. of the Revised Code. | 475 |
(2) At any time after the adoption of a plan of operation | 476 |
under division (A)(1) of this section, the board of governors may | 477 |
submit proposals for amendments to the plan of operation to the | 478 |
superintendent for the superintendent's approval. The | 479 |
superintendent also may propose amendments to the plan of | 480 |
operation. All amendments to the plan of operation shall be | 481 |
consistent with sections 3929.62 to 3929.70 of the Revised Code | 482 |
and shall be adopted as rules in accordance with Chapter 119. of | 483 |
the Revised Code. | 484 |
Sec. 3929.66. (A) Any applicant practicing or operating in | 506 |
this state seeking to purchase medical liability insurance being | 507 |
offered by the medical liability underwriting association, on or | 508 |
after the effective date of the medical liability underwriting | 509 |
association's plan of operation, may apply to the medical | 510 |
liability underwriting association for medical liability | 511 |
insurance. The application may be made on behalf of an applicant | 512 |
by a broker or agent authorized by the applicant, or may be made | 513 |
on behalf of a number of eligible applicants who are members of a | 514 |
medical society. | 515 |
(B) The board of governors of the medical liability | 516 |
underwriting association, in formulating the plan of operation | 517 |
under section 3929.65 of the Revised Code, shall include minimum | 518 |
eligibility and underwriting standards for applicants. If the | 519 |
medical liability underwriting association determines that an | 520 |
applicant meets the eligibility and underwriting standards of the | 521 |
medical liability underwriting association as prescribed in the | 522 |
plan of operation and there is no unpaid, uncontested premium due | 523 |
to the medical liability underwriting association from the | 524 |
applicant for prior medical liability insurance, the medical | 525 |
liability underwriting association, upon receipt of the premium, | 526 |
or such portion thereof as is prescribed in the plan of operation, | 527 |
shall issue a policy of medical liability insurance for a term of | 528 |
one year. | 529 |
(D) The rates, rating plans, rating rules, rating | 539 |
classifications, territories, and policy forms applicable to the | 540 |
insurance written by the medical liability underwriting | 541 |
association and related statistics are subject to Chapter 3937. of | 542 |
the Revised Code and shall be established by the board of | 543 |
governors subject to the approval of the superintendent of | 544 |
insurance, giving due consideration to the past and prospective | 545 |
loss and expense experience for medical liability insurance sold | 546 |
by insurers in this state, trends in the frequency and severity of | 547 |
losses, and such other information as the superintendent may | 548 |
require. All rates shall be on an actuarially sound basis, and | 549 |
shall be calculated to be self-supporting exclusive of any amounts | 550 |
held by the stabilization reserve fund. There shall be a | 551 |
presumption that the rates filed and premiums for the business of | 552 |
the medical liability underwriting association are not | 553 |
unreasonable or excessive. The superintendent shall take all | 554 |
appropriate steps to make available to the medical liability | 555 |
underwriting association the profit, loss, and expense experience | 556 |
of insurers currently or previously writing medical liability | 557 |
insurance in this state. | 558 |
(F) All policies issued by or on behalf of the medical | 565 |
liability underwriting association shall contain a provision that | 566 |
upon termination of the policy through cancellation on grounds | 567 |
other than nonpayment of premiums, or through retirement or death | 568 |
of the insured, the insured or the insured's estate has the right | 569 |
on payment of appropriate additional premiums to extend coverage | 570 |
to include claims covered by the policy and discovered and | 571 |
reported after the policy period and for which written claim is | 572 |
made against the insured. | 573 |
Sec. 3929.661. The medical liability underwriting association | 574 |
may offer policyholders the option of being liable as a co-insurer | 575 |
on sums paid out by way of settlement or judgment against the | 576 |
policyholder on any claim made under the policy. The medical | 577 |
liability underwriting association has sole authority to settle | 578 |
any claim subject to the co-insurance option without the consent | 579 |
of the insured. The plan of operation shall set forth the terms | 580 |
and conditions of the optional co-insurance coverage. | 581 |
Sec. 3929.68. (A) There shall be no liability imposed on the | 623 |
part of, and no cause of action of any nature arises against, the | 624 |
medical liability underwriting association or the stabilization | 625 |
reserve fund, its board of governors, directors, agents, or | 626 |
employees, an insurer or its employees, any licensed agent or | 627 |
broker, or the superintendent of insurance or the superintendent's | 628 |
authorized representatives and employees, for any action taken by | 629 |
them in the performance of their powers and duties under sections | 630 |
3929.62 to 3929.70 of the Revised Code. Any reports and | 631 |
communications made in connection with those actions are not | 632 |
public records. | 633 |
(B) With respect to any policy of insurance issued by the | 634 |
medical liability underwriting association, any contract executed | 635 |
by the medical liability underwriting association or the | 636 |
stabilization reserve fund, or any action taken under or related | 637 |
to sections 3929.62 to 3929.70 of the Revised Code, there shall be | 638 |
no liability on the part of the state beyond amounts paid into or | 639 |
earned by the medical liability underwriting association and | 640 |
stabilization reserve fund. | 641 |
Sec. 3929.681. Any insurer or other person aggrieved by any | 642 |
action or decision of the medical liability underwriting | 643 |
association may appeal to the board of governors. The decision of | 644 |
the board of governors may be appealed to the superintendent of | 645 |
insurance within thirty days from the date of the action or the | 646 |
decision. The superintendent shall, after a hearing held upon | 647 |
proper notice, issue an order approving or disapproving the action | 648 |
or decision, with respect to the matter that is the subject of | 649 |
appeal. All final orders and decisions of the superintendent are | 650 |
subject to judicial review as provided in Chapter 119. of the | 651 |
Revised Code. | 652 |
Sec. 3929.682. (A) A medical liability fund is hereby created | 653 |
in the state treasury. The medical liability fund shall consist of | 654 |
the remaining funds of the joint underwriting association, the | 655 |
association created under section 3929.72 of the Revised Code and | 656 |
dissolved under section 3929.721 of the Revised Code, and shall be | 657 |
used for the purposes of funding the medical liability | 658 |
underwriting association that is created in accordance with | 659 |
sections 3929.62 to 3929.70 of the Revised Code or for funding | 660 |
another medical malpractice initiative with the approval of the | 661 |
general assembly. | 662 |
Sec. 3929.69. (A) Annually on or before the first day of | 668 |
March, the medical liability underwriting association and the | 669 |
stabilization reserve fund shall file in the office of the | 670 |
superintendent of insurance a statement or statements containing | 671 |
information with respect to their transactions, condition, | 672 |
operations, and affairs during the preceding year. The statement | 673 |
or statements shall contain such matters and information as are | 674 |
prescribed and shall be in a form approved by the superintendent. | 675 |
(B) The superintendent or any person designated by the | 676 |
superintendent, at any time, may visit and examine the operation | 677 |
and experience of the medical liability underwriting association | 678 |
and stabilization reserve fund. The association and stabilization | 679 |
reserve fund shall give the superintendent or the superintendent's | 680 |
designee free access to all the books, records, files, papers, and | 681 |
documents that relate to the operation of the medical liability | 682 |
underwriting association and stabilization reserve fund, and may | 683 |
summon, qualify, and allow the examination as witnesses of all | 684 |
persons having knowledge of the operations of the medical | 685 |
liability underwriting association and the stabilization reserve | 686 |
fund, including officers, agents, and employees of the medical | 687 |
liability underwriting association and the stabilization reserve | 688 |
fund. | 689 |
(B) The Superintendent of Insurance shall certify to the | 717 |
Director of Budget and Management the amount of cash deposited | 718 |
from the remaining funds of the Joint Underwriting Association to | 719 |
the General Revenue Fund. Notwithstanding section 3929.721 of the | 720 |
Revised Code, the Director of Budget and Management shall transfer | 721 |
an amount equal to the certified amount from the General Revenue | 722 |
Fund to the Medical Liability Fund created in section 3929.682 of | 723 |
the Revised Code. The amount transferred is hereby appropriated in | 724 |
fiscal year 2004. Any unencumbered and unallocated balances are | 725 |
hereby reappropriated in fiscal year 2005. | 726 |
Section 6. This act is hereby declared to be an emergency | 731 |
measure necessary for the immediate preservation of the public | 732 |
peace, health, and safety. The reason for this necessity is the | 733 |
need to maintain ready access to medical liability insurance for | 734 |
Ohio's physicians, podiatrists, and hospitals as the availability | 735 |
of this insurance in the market declines; access to medical | 736 |
liability insurance needed if Ohio's physicians, podiatrists, and | 737 |
hospitals are to maintain their practices and operations in this | 738 |
state, providing Ohio's residents with ready, quality medical | 739 |
care. Therefore, this act shall go into immediate effect. | 740 |