arising out of the death or injury of an individual as a result of a
licensee's negligence or malpractice in rendering professional
Sec. 7. (a) The commissioner shall, not later than December 31, 2009, approve a reasonable plan for the establishment of a nonprofit, midwife joint underwriting association through which insurers that are members of the association make available midwifery malpractice liability insurance policies in accordance with this chapter.
(b) The plan approved under subsection (a) must include the following:
(1) A market assistance plan to be used before the association begins functioning.
(2) A risk management program for licensees insured by the association. The risk management program must include the following:
(A) Investigation and analysis of frequency, severity, and causes of adverse outcomes.
(B) Development of measures to control the adverse outcomes.
(C) Systematic reporting of incidents.
(D) Investigation and analysis of client complaints.
(E) Education of association policyholders to improve quality of care and risk reduction.
Sec 8. Each insurer that possesses a certificate of authority under IC 27 to do general casualty or malpractice liability insurance business in Indiana shall be a member of the association.
Sec. 9. The commissioner may:
(1) administer the association; or
(2) contract with an insurer described in section 8 of this chapter to administer the association.
Sec. 10. (a) The association shall provide coverage under a midwifery malpractice liability insurance policy with liability limits of:
(1) one million dollars ($1,000,000) per occurrence; and
(2) three million dollars ($3,000,000) in the annual aggregate;
or a higher minimum amount as determined by the commissioner.
(b) The commissioner shall require the use of a rating plan for midwifery malpractice liability insurance that:
(1) is based on sound actuarial principles; and
(2) permits rates to be modified according to an individual licensee's practice volume.
(c) Coverage provided by the association may not exclude coverage for home birth or birthing center deliveries.
Sec. 11. The commissioner may not approve a midwifery malpractice liability insurance policy that is written on a claims made basis unless the insurer guarantees the continued availability
of sufficient midwifery malpractice liability protection after the:
(1) licensee discontinues the practice of midwifery; or
(2) insurer terminates the midwifery malpractice liability insurance policy;
until there is no longer a reasonable probability of a claim for injury for which the licensee may be liable.
Sec. 12. (a) Only a licensee is eligible to purchase coverage from the association.
(b) A licensee may apply to the association to purchase midwifery malpractice liability insurance.
Sec. 13. The commissioner may adopt rules under IC 4-22-2 to implement this chapter, including rules specifying midwifery malpractice liability insurance policy provisions.
IC 27-13-34-4), the minimum annual aggregate insurance
amount is one million seven hundred fifty thousand dollars
(C) If the health care provider is a health facility, the minimum annual aggregate insurance amount is as follows:
(i) For health facilities with not more than one hundred (100) beds, seven hundred fifty thousand dollars ($750,000).
(ii) For health facilities with more than one hundred (100) beds, one million two hundred fifty thousand dollars ($1,250,000).
(D) If the health care provider is a certified direct entry midwife, the minimum malpractice liability insurance policy amounts are as follows:
(i) One million dollars ($1,000,000) per occurrence.
(ii) Three million dollars ($3,000,000) in the annual aggregate.
(2) By filing and maintaining with the commissioner cash or surety bond approved by the commissioner in the amounts set forth in subdivision (1).
(3) If the health care provider is a hospital or a psychiatric hospital, by submitting annually a verified financial statement that, in the discretion of the commissioner, adequately demonstrates that the current and future financial responsibility of the health care provider is sufficient to satisfy all potential malpractice claims incurred by the provider or the provider's officers, agents, and employees while acting in the course and scope of their employment up to a total of two hundred fifty thousand dollars ($250,000) per occurrence and annual aggregates as follows:
(A) For hospitals of not more than one hundred (100) beds, five million dollars ($5,000,000).
(B) For hospitals of more than one hundred (100) beds, seven million five hundred thousand dollars ($7,500,000).
The commissioner may require the deposit of security to assure continued financial responsibility.".
Renumber all SECTIONS consecutively.
(Reference is to ESB 86 as printed April 10, 2009.)