2005 Texas Insurance Code CHAPTER 2212. SELF-INSURANCE TRUSTS FOR HEALTH CARE LIABILITY CLAIMS

INSURANCE CODE

CHAPTER 2212. SELF-INSURANCE TRUSTS FOR HEALTH CARE LIABILITY 
CLAIMS

SUBCHAPTER A. GENERAL PROVISIONS


	§ 2212.001. DEFINITIONS.  In this chapter:                                  
		(1)  "Dentist" means a person licensed to practice 
dentistry in this state. 
		(2)  "Health care liability claim" means a cause of 
action against a physician or dentist for treatment, lack of 
treatment, or other claimed departure from accepted standards of 
health care or safety that proximately results in injury to or death 
of the patient, whether the patient's claim or cause of action 
sounds in tort or contract.
		(3)  "Physician" means a person licensed to practice 
medicine in this state.
		(4)  "Trust" means a self-insurance trust organized and 
operated under this chapter.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2212.002. TRUST NOT ENGAGED IN BUSINESS OF 
INSURANCE.  A trust is not engaged in the business of insurance 
under this code and other laws of this state, and this code, other 
than this chapter, does not apply to the trust, except as provided 
by Section 2212.052.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           

SUBCHAPTER B. CREATION AND OPERATION OF TRUST


	§ 2212.051. CREATION OF TRUST.  (a) Subject to Subsection 
(b), an incorporated association, a purpose of which is to unite in 
one compact organization the entire profession licensed to practice 
medicine or dentistry in this state, or a portion of the members of 
the profession licensed to practice medicine who are practicing a 
particular specialty within the practice of medicine in the state 
or are practicing within a particular region of the state, may 
create a trust to self-insure physicians or dentists and agree, by 
contract or otherwise, to insure other members of the organization 
or association against health care liability claims and related 
risks.
	(b)  The organization or association must:                                     
		(1)  have been in continuing existence for at least two 
years;              
		(2)  have established a health care liability claim 
trust or other agreement to provide coverage against health care 
liability claims and related risks;  and
		(3)  employ appropriate professional staff and 
consultants for program management.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2212.052. MINIMUM REQUIREMENTS.  (a) The department may 
require a trust to satisfy reasonable minimum requirements that 
ensure the trust is able to satisfy the trust's contractual 
obligations.
	(b)  On request, a trust shall provide books, records, and 
documents required by the department to fulfill the requirements of 
this section relating to the trust's solvency.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2212.053. FILING REQUIREMENTS.  (a) A trust shall file 
with the department:
		(1)  all rates and forms, for informational purposes 
only;                  
		(2)  all liability claims reports required under 
Subchapter D, Chapter 38;  and
		(3)  the trust's independently audited annual financial 
statement.          
	(b)  An audited annual financial statement filed under this 
section may not be considered an examination document.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2212.054. POWERS OF TRUST.  (a) A trust may:                              
		(1)  purchase, on behalf of the members of the 
association that created the trust, medical professional liability 
insurance, specific excess insurance, aggregate excess insurance, 
and reinsurance, as necessary in the opinion of the trustees;
		(2)  purchase required risk management services;  and                         
		(3)  pay claims that arise under any deductible 
provisions.                 
	(b)  A trust's investment powers and limitations are the same 
as the investment powers and limitations of a state bank with trust 
powers.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2212.055. GUARANTEE OF CERTAIN LIABILITIES.  The trust 
shall adopt rules to guarantee all contingent liabilities in the 
event of dissolution.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2212.056. ADMINISTRATIVE SANCTIONS.  If a trust is 
found to have violated this code or a rule adopted by the 
commissioner that is declared applicable to the trust, the 
commissioner may order sanctions under Chapter 82 for the 
violation.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           

SUBCHAPTER C. INSURANCE CONTRACTS ISSUED BY TRUST


	§ 2212.101. COVERAGE UNDER CONTRACT.  A contract of 
professional liability insurance issued by a trust may include 
coverage of:
		(1)  a professional association or partnership of 
physicians, with respect to health care liability claims and 
related risks if a majority of the persons having a proprietary 
interest in the association or partnership are members of the 
association that created the trust;
		(2)  proprietary members, associates, stockholders, 
and executive officers and directors of an association or 
partnership described by Subdivision (1), with respect to potential 
vicarious liability for acts or omissions of others giving rise to 
health care liability claims and related risks;
		(3)  an insured physician and, as applicable, an 
insured professional association or partnership, including 
proprietary members, associates, stockholders, and executive 
officers and directors of the association or partnership, with 
respect to liability of an insured arising out of:
			(A)  injury to a patient related to ownership, 
maintenance, or use of premises for the practice of medicine, 
including necessary or incidental operations;
			(B)  service by an insured physician as a member 
of a committee, board, or similar group of a hospital medical staff 
or of a professional association or society with respect to medical 
staff privileges, accreditation, or disciplinary matters relating 
to competency or patient safety and risk reduction programs;  or
			(C)  a health care liability claim or related risk 
based in whole or part on an act or omission occurring before the 
date a contract of professional insurance is issued by the trust;  
or
		(4)  an applicant for membership in the association 
that created the trust, pending final action on the application, 
with respect to health care liability claims and related risks, 
including coverage described by Subdivision (1), (2), or (3), as 
applicable.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.