HB 899 Summary

• Repeals and re-enacts sections of Missouri law relating to assessable associations that provide malpractice insurance, establishing new definitions for initial, regular, operating, and special assessments.

• Requires assessable associations to maintain a minimum policyholder's surplus of $600,000, with a phased transition period allowing associations licensed before January 1, 2013 to gradually increase from $200,000 (by December 31, 2013) to $600,000 (by December 31, 2015).

• Establishes that the ratio of net written premiums to policyholders' surplus cannot exceed 3:1 without director approval, with phased requirements for existing associations increasing from 4:1 (by December 31, 2013) to 3:1 (by December 31, 2015).

• Limits special assessments to apply to former members only within five years of their coverage termination date, and requires articles of association and bylaws to specify assessment types, methods, timing, and maximum amounts.

• Modifies health care provider malpractice insurance rate review procedures, requiring the director to hold a hearing and apply specific factors including Missouri loss experience, investment income over ten years, administrative costs, and reasonable rates of return before determining if rates are excessive, inadequate, or unfairly discriminatory.