1.1 	A bill for an act
1.2 	relating to civil actions; providing limits on certain
1.3 	liability of long-term care providers; requiring a
1.4 	medical malpractice insurance report; proposing coding
1.5 	for new law in Minnesota Statutes, chapter 144A.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [144A.80] DEFINITIONS.
1.8 		Subdivision 1.Application. The definitions in this
1.9 	section apply to section 144A.81.
1.10 		Subd. 2.Long-term care provider. "Long-term care
1.11 	provider" means:
1.12 	(1) a boarding care home licensed under sections 144.56 and
1.13 	144A.02 to 144A.08;
1.14 	(2) a provider that furnishes continuing care within the
1.15 	meaning of section 80D.02, subdivision 2;
1.16 	(3) a home care provider as defined in section 144A.43;
1.17 	(4) a hospice provider as defined by section 144A.75,
1.18 	subdivision 5;
1.19 	(5) a housing with services establishment as defined by
1.20 	section 144D.01, subdivision 4;
1.21 	(6) day training and habilitation services licensed under
1.22 	sections 245B.01 to 245B.08; or 
1.23 	(7) a nursing home as defined by section 144A.01,
1.24 	subdivision 5.
1.25 		Subd. 3.Consumer. "Consumer" means a recipient of goods
2.1 	or services from a long-term care provider, or the recipient's
2.2 	agents, assigns, successors, heirs, or third-party beneficiaries.
2.3 		Subd. 4.Noneconomic damages. "Noneconomic damages"
2.4 	means subjective, nonpecuniary damages arising from death,
2.5 	disfigurement, pain, suffering, inconvenience, mental anguish,
2.6 	worry, emotional distress, loss of society or companionship,
2.7 	loss of consortium, bystander injury, physical impairment,
2.8 	injury to reputation, humiliation, embarrassment, loss of the
2.9 	enjoyment of life, hedonic damages, other nonpecuniary damages,
2.10 	and any similar kinds of damages, such as fear of loss, illness,
2.11 	or injury.  Noneconomic damages does not include economic
2.12 	damages.
2.13 		Subd. 5.Economic damages. "Economic damages" means
2.14 	objectively verifiable pecuniary damages arising from medical
2.15 	expenses and medical care, rehabilitation services, custodial
2.16 	care, disabilities, loss of earnings and earning capacity, loss
2.17 	of income, loss of use of property, cost of repair or
2.18 	replacement of property, cost of obtaining substitute domestic
2.19 	services, loss of employment, loss of business opportunities,
2.20 	burial costs, and other objectively verifiable monetary losses.

2.21 	Sec. 2. [144A.81] DAMAGE LIMITATION.
2.22 	(a) In an action by a consumer against a long-term care
2.23 	provider that arises out of the care or treatment of, or
2.24 	provision of other services to, the consumer, the amount of
2.25 	noneconomic damages awarded against the long-term provider may
2.26 	not exceed the dollar limits provided for total damages against
2.27 	a municipality under section 466.04.
2.28 	(b) The limitation on noneconomic damages in paragraph (a)
2.29 	does not apply unless the long-term care provider has insurance
2.30 	against liability for the type of claim described in paragraph
2.31 	(a), and the insurance has limits on total liability coverage
2.32 	for that type of claim that are at least as high as the dollar
2.33 	limits for total liability provided in section 466.04.
2.34 	(c) This section does not apply if the long-term care
2.35 	provider was grossly negligent or intended to cause the harm.

2.36 	Sec. 3. MEDICAL MALPRACTICE INSURANCE REPORT.
 3.1 	(a) The commissioner of commerce shall provide to the
3.2 	legislature, no later than March 1 of each year, a brief written
3.3 	report on the status of the market for medical malpractice
3.4 	insurance in Minnesota.  The report must summarize, interpret,
3.5 	explain, and analyze information on that subject available to
3.6 	the commissioner, through annual statements filed by insurance
3.7 	companies, information obtained under paragraph (c), and other
3.8 	sources.
3.9 	(b) The annual report must consider, to the extent
3.10 	possible, Minnesota-specific data on market shares; premiums
3.11 	received; amounts paid to settle claims that were not litigated,
3.12 	claims that were settled after litigation began, and claims that
3.13 	were litigated to court judgment; amounts spent on processing,
3.14 	investigation, litigation, and otherwise handling claims; other
3.15 	sales and administrative costs; and the loss ratios of the
3.16 	insurers.
3.17 	(c) Each insurance company that provides medical
3.18 	malpractice insurance in this state shall, no later than
3.19 	February 1 of each year, file with the commissioner of commerce,
3.20 	on a form prescribed by the commissioner, the Minnesota-specific
3.21 	data referenced in paragraph (b), other than market share, for
3.22 	the previous calendar year for that insurance company, shown
3.23 	separately for the categories of coverage provided to hospitals,
3.24 	medical clinics, nursing homes, emergency medicine physicians,
3.25 	and obstetrician-gynocologists.  An insurance company need not
3.26 	comply with this paragraph if its direct premium written in the
3.27 	state for the previous calendar year is less than $2,000,000.

3.28 	Sec. 4. EFFECTIVE DATE; APPLICATION.
 3.29 	Sections 1 and 2 are effective the day following final
3.30 	enactment and apply to claims for liability arising from
3.31 	incidents occurring on or after that date.