§ 36-2208. Duties of Commissioner – Review and evaluation – Study and analysis of cost of administration.

A.  The Commissioner shall annually review negotiations between the trust and any entity to provide administrative, claim, underwriting or claim management services or excess insurance, aggregate excess insurance and reinsurance to the trust.

B.  The Commissioner shall, at least twice yearly, review and evaluate each category of operations of the trust or association as follows:

1.  Underwriting policies and activities, including all new applications for coverage, as well as all decisions regarding denial of new policies and surcharges on or nonrenewal of existing insureds;

2.  Summaries of all claims activities, including number of claims filed, lawsuits filed, resolution of closed claims and lawsuits, amounts paid in settlements, jury verdicts, defense attorney fees, expert witness costs and other defense costs;

3.  Consumer satisfaction with quality of service by the trust or its agents;

4.  Investment activities;

5.  All filed base rates and proposed rate increases; and

6.  All risk-management activities, including continuing education and counseling of insureds.

C.  The Commissioner shall further study and analyze the cost of administration of the trust to determine how its administrative costs compare to the administrative costs of other medical professional liability trusts and insurers providing medical liability coverage.  The Commissioner shall submit a report of the Commissioner’s study to the Governor, the President Pro Tempore of the Senate and the Speaker of the House of Representatives no later than February 1 of each year.

D.  The trust shall provide the Commissioner with policy changes, rate changes, rules proposed by the trust and changes to the trust instrument prior to implementation of policy changes, rate changes, proposed rules and changes to the trust instrument within thirty (30) days of implementation of such changes.

Added by Laws 2004, c. 368, § 65, eff. July 1, 2004.