KRS 304.40-075: Medical malpractice insurance for charitable health care providers --

Scope of coverage -- Premiums -- Registration of providers -- Review --

Availability of information.

(1) As used in this section, unless the context requires otherwise:

(a) "Charitable health care provider" has the same meaning as in KRS 216.940;

(b) "Medical malpractice insurer" means every person or entity engaged as

principal and as indemnitor, surety, or contractor in the business of entering

into contracts to provide medical professional liability insurance, except an

entity in the business of providing such medical professional liability

insurance only to itself or its affiliated subsidiary, or parent corporation, or

subsidiaries of its parent corporations; and

(c) "Medical professional liability insurance" means insurance to cover liability

incurred as a result of the hands-on providing of medical professional services

directly to patients by an insured in the treatment, diagnosis, or prevention of

patient illness, disease, or injury.

(2) Insurers offering medical professional liability insurance in the Commonwealth

shall make available, as a condition of doing business in the Commonwealth

pursuant to this chapter, medical professional liability insurance for charitab le

health care providers and persons volunteering to perform medical services for

charitable health care providers, with the same coverage limits made available to its

other insureds.

(3) (a) Premiums for policies issued under subsection (2) of this sectio n shall be paid

by the Commonwealth from the general fund upon written application for

payment of the premium by the health care provider wishing to offer

charitable services. A health care provider shall submit an application for

payment of premium to the Department of Insurance no later than one (1) year

from the expiration of the policy for which payment is being requested.

(b) The Department of Insurance shall, through promulgation of administrative

regulations pursuant to KRS Chapter 13A, establish rea sonable guidelines for

the registration of charitable health care providers. The guidelines shall

require the provider to supply, at a minimum, the following information:

1. Name and address of the charitable health care provider;

2. Number of employees of the charitable health care provider who will be:

a. Rendering medical care without compensation or charge and

without expectation of compensation or charge; and

b. Covered under the policy issued under subsection (2) of this

section;

3. The expected number of patients to be provided charitable health care

services in the year for which the insurer will offer malpractice

coverage;

4. The charitable health care provider's acknowledgment that the insurer's

risk management and loss prevention policies shall be followed;

5. A copy of the registration filed with the Cabinet for Health and Family

Services under KRS 216.941; and

6. A copy of the medical malpractice policy, declaration page, and any

other documentation the commissioner may deem nec essary to

determine the proper amount of premiums and taxes to be reimbursed.

(c) Persons insured under this section shall be required to comply with the same

risk management and loss prevention policies which the insurer imposes upon

its other insureds.

(d) Any premium refund for medical professional liability insurance issued under

subsection (2) of this section received for any reason by the charitable health

care provider shall be promptly remitted to the department for transmittal to

the general fund.

(4) This section shall only apply to charitable health care providers, and persons

volunteering to perform medical services for charitable health care providers:

(a) Who are not otherwise covered by any policy of medical professional liability

insurance for the charitable health care services provided; and

(b) That meet the terms for eligibility established pursuant to this section.

(5) Coverage offered to charitable health care providers, and persons volunteering at

charitable health care providers, shall be at least as broad as the coverage offered by

the insurer to other noncharitable health care providers or facilities and to medical

professionals working at noncharitable health care facilities.

(6) The Department of Insurance shall retrospectively revie w on an annual basis the

premiums paid pursuant to this section as opposed to the expenses incurred by the

insurers covering risks under this section to determine if the profits made for those

risks were consistent with reasonable loss ratio guidelines. If the determination is

made that the profits were not consistent with reasonable loss ratio guidelines, the

Department of Insurance shall determine the amount of the premiums to be

refunded to the Commonwealth.

(7) The Cabinet for Health and Family Services shall make available to the Department

of Insurance information on its registration of charitable health care providers for

the purpose of obtaining medical malpractice insurance.

(8) The Department of Insurance shall not provide medical malpractice insur ance as

specified in subsection (3)(a) of this section to a charitable health care provider who

has not registered with the Cabinet for Health and Family Services under KRS

216.941.