HF 1465

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to civil actions; providing limits on certain
liability of long-term care providers; requiring a
medical malpractice insurance report; proposing coding
for new law in Minnesota Statutes, chapter 144A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [144A.80] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The definitions in this
section apply to section 144A.81.
new text end

new text begin Subd. 2. new text end

new text begin Long-term care provider. new text end

new text begin "Long-term care
provider" means:
new text end

new text begin (1) a boarding care home licensed under sections 144.56 and
144A.02 to 144A.08;
new text end

new text begin (2) a provider that furnishes continuing care within the
meaning of section 80D.02, subdivision 2;
new text end

new text begin (3) a home care provider as defined in section 144A.43;
new text end

new text begin (4) a hospice provider as defined by section 144A.75,
subdivision 5;
new text end

new text begin (5) a housing with services establishment as defined by
section 144D.01, subdivision 4;
new text end

new text begin (6) day training and habilitation services licensed under
sections 245B.01 to 245B.08; or
new text end

new text begin (7) a nursing home as defined by section 144A.01,
subdivision 5.
new text end

new text begin Subd. 3. new text end

new text begin Consumer. new text end

new text begin "Consumer" means a recipient of goods
or services from a long-term care provider, or the recipient's
agents, assigns, successors, heirs, or third-party beneficiaries.
new text end

new text begin Subd. 4. new text end

new text begin Noneconomic damages. new text end

new text begin "Noneconomic damages"
means subjective, nonpecuniary damages arising from death,
disfigurement, pain, suffering, inconvenience, mental anguish,
worry, emotional distress, loss of society or companionship,
loss of consortium, bystander injury, physical impairment,
injury to reputation, humiliation, embarrassment, loss of the
enjoyment of life, hedonic damages, other nonpecuniary damages,
and any similar kinds of damages, such as fear of loss, illness,
or injury. Noneconomic damages does not include economic
damages.
new text end

new text begin Subd. 5. new text end

new text begin Economic damages. new text end

new text begin "Economic damages" means
objectively verifiable pecuniary damages arising from medical
expenses and medical care, rehabilitation services, custodial
care, disabilities, loss of earnings and earning capacity, loss
of income, loss of use of property, cost of repair or
replacement of property, cost of obtaining substitute domestic
services, loss of employment, loss of business opportunities,
burial costs, and other objectively verifiable monetary losses.
new text end

Sec. 2.

new text begin [144A.81] DAMAGE LIMITATION.
new text end

new text begin (a) In an action by a consumer against a long-term care
provider that arises out of the care or treatment of, or
provision of other services to, the consumer, the amount of
noneconomic damages awarded against the long-term provider may
not exceed the dollar limits provided for total damages against
a municipality under section 466.04.
new text end

new text begin (b) The limitation on noneconomic damages in paragraph (a)
does not apply unless the long-term care provider has insurance
against liability for the type of claim described in paragraph
(a), and the insurance has limits on total liability coverage
for that type of claim that are at least as high as the dollar
limits for total liability provided in section 466.04.
new text end

new text begin (c) This section does not apply if the long-term care
provider was grossly negligent or intended to cause the harm.
new text end

Sec. 3. new text begin MEDICAL MALPRACTICE INSURANCE REPORT.
new text end

new text begin (a) The commissioner of commerce shall provide to the
legislature, no later than March 1 of each year, a brief written
report on the status of the market for medical malpractice
insurance in Minnesota. The report must summarize, interpret,
explain, and analyze information on that subject available to
the commissioner, through annual statements filed by insurance
companies, information obtained under paragraph (c), and other
sources.
new text end

new text begin (b) The annual report must consider, to the extent
possible, Minnesota-specific data on market shares; premiums
received; amounts paid to settle claims that were not litigated,
claims that were settled after litigation began, and claims that
were litigated to court judgment; amounts spent on processing,
investigation, litigation, and otherwise handling claims; other
sales and administrative costs; and the loss ratios of the
insurers.
new text end

new text begin (c) Each insurance company that provides medical
malpractice insurance in this state shall, no later than
February 1 of each year, file with the commissioner of commerce,
on a form prescribed by the commissioner, the Minnesota-specific
data referenced in paragraph (b), other than market share, for
the previous calendar year for that insurance company, shown
separately for the categories of coverage provided to hospitals,
medical clinics, nursing homes, emergency medicine physicians,
and obstetrician-gynocologists. An insurance company need not
comply with this paragraph if its direct premium written in the
state for the previous calendar year is less than $2,000,000.
new text end

Sec. 4. new text begin EFFECTIVE DATE; APPLICATION.
new text end

new text begin Sections 1 and 2 are effective the day following final
enactment and apply to claims for liability arising from
incidents occurring on or after that date.
new text end