1.1                          A bill for an act 
  1.2             relating to insurance; regulating the joint 
  1.3             underwriting association; modifying coverage; amending 
  1.4             Minnesota Statutes 2002, section 62F.04, by adding a 
  1.5             subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 62F.04, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 2a.  [DUTY TO LONG-TERM CARE PROVIDERS.] (a) The 
  1.10  association is specifically authorized and directed to issue or 
  1.11  cause to be issued medical malpractice insurance policies on a 
  1.12  primary basis to nursing facility applicants and other long-term 
  1.13  care provider applicants who are otherwise eligible, including 
  1.14  incidental coverages, with one of the following limits, as the 
  1.15  applicant may select:  (1) $1,000,000 for each claimant under 
  1.16  one policy and $3,000,000 for all claimants under one policy in 
  1.17  any one year; or (2) $2,000,000 for each claimant under one 
  1.18  policy and $4,000,000 for all claimants under one policy in any 
  1.19  one year; or (3) $3,000,000 for each claimant under one policy 
  1.20  and $6,000,000 for all claimants under one policy in any one 
  1.21  year.  Unless and until the commissioner revokes the 
  1.22  association's authorization pursuant to paragraph (b), the 
  1.23  association shall also underwrite the insurance and adjust and 
  1.24  pay losses with respect thereto, or appoint service companies to 
  1.25  perform those functions, assume reinsurance from its members, 
  2.1   and cede reinsurance. 
  2.2      (b) The authorization and direction to issue insurance 
  2.3   under paragraph (a) remains in effect unless and until the 
  2.4   commissioner determines after a hearing that the insurance can 
  2.5   be made available in the voluntary market and revokes the 
  2.6   association's authorization to issue the insurance. 
  2.7      (c) The association shall amend its plan of operation to 
  2.8   reflect the substance of this subdivision and shall file the 
  2.9   amendment with the commissioner within 30 days after the 
  2.10  effective date of this subdivision or, in the case of a 
  2.11  revocation under paragraph (b), within 30 days after the 
  2.12  effective date of the revocation.  Notwithstanding section 
  2.13  62F.05, subdivision 3, an amendment filed pursuant to this 
  2.14  paragraph is not subject to the approval of the commissioner and 
  2.15  becomes effective and operational upon filing. 
  2.16     Sec. 2.  [EFFECTIVE DATE.] 
  2.17     Section 1 is effective the day following final enactment.