2013 - 2014 LEGISLATURE
February 17, 2014 - Introduced by Senators Darling,
Vukmir and Jauch,
cosponsored by Representatives
Nygren, Ballweg, Bies, Born, Kaufert,
Petryk, Pridemore, Severson, Spiros, Strachota, Swearingen, Tittl and
Vruwink. Referred to Committee on Health and Human Services.
1An Act to amend
618.43 (1) (a) 2.; and
655.001 (8c) and 655.23 (3) (am) 2
of the statutes; relating to: authorizing out-of-state risk retention groups to
3provide health care liability insurance.
Analysis by the Legislative Reference Bureau
The health care liability provisions of the statutes require certain health care
providers to carry health care liability (medical malpractice) insurance with liability
limits of at least $1,000,000 for each occurrence and at least $3,000,000 for all
occurrences in a policy year. Any portion of a medical malpractice claim that exceeds
the policy limits is paid by the Injured Patients and Families Compensation Fund
for health care providers that are subject to the health care liability provisions.
Under current law, a health care provider may satisfy the requirement for liability
coverage either by being covered under a policy issued by an insurer authorized to
do business in this state or by qualifying as a self-insurer in accordance with
conditions established by the commissioner of insurance (commissioner).
This bill authorizes a health care provider to satisfy the liability coverage
requirement by being covered under a policy issued by an insurer that is a risk
retention group that is domiciled in another state. Although not authorized to do
business in this state, the risk retention group must be registered with the
commissioner and approved by the commissioner to provide health care liability
insurance coverage to health care providers under the health care liability provisions
of the statutes. Under the bill, any such risk retention group is subject to all the
requirements under the health care liability provisions of the statutes that apply to
other insurers that provide health care liability insurance coverage under the health
care liability provisions of the statutes, including policy approval by the
commissioner, assessments for the peer review council, mandated payment of
specified costs in the settlement or defense of claims, and reporting requirements
related to claims paid. Current law defines a risk retention group with the meaning
given under federal law, which is, generally, a corporation or limited liability
company whose primary activity is assuming and spreading the liability exposure
of its group members; that is chartered or licensed as a liability insurance company
under the laws of a state; that has as its owners only persons who comprise the
membership of the group and who are provided insurance by the group, or that has
as its sole owner an organization that has as its members only persons who comprise
the membership of the group and as its owners only persons who comprise the
membership of the group and who are provided insurance by the group; and whose
members are engaged in businesses or activities similar or related with respect to the
liability to which such members are exposed by virtue of any related, similar, or
common business, services, or operations.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
618.43 (1) (a) 2. of the statutes is amended to read:
(a) 2. The insurance is transacted by an unauthorized insurer which 3that
is a risk retention group, including a foreign risk retention group authorized to
4provide health care liability insurance under s. 655.23 (3) (am) that has not been
5issued a certificate of authority under s. 618.12
655.001 (8c) of the statutes is created to read:
"Insurer" includes a foreign insurer that is a risk retention group 8
that issues health care liability insurance under this chapter.
655.23 (3) (am) of the statutes is created to read:
(am) For purposes of par. (a) only, a foreign insurer that is a risk 11
retention group and that has not been issued a certificate of authority under s. 618.12 12
is authorized to do business in this state if the risk retention group is registered with
the commissioner and approved by the commissioner to provide health care liability 2
insurance coverage under this chapter.