AN ACT RELATING TO INSURANCE -- UNAUTHORIZED INSURANCE BUSINESS -- MEDICAL MALPRACTICE INSURANCE

HB 8401 strengthens the oversight of medical malpractice insurance for hospitals affiliated with accredited medical schools in Rhode Island. The bill requires these hospitals to obtain prior approval from the Department of Business Regulation before establishing or maintaining any self-insurance program for malpractice liability. To qualify, hospitals must demonstrate financial solvency, adequate reserves, and the ability to pay claims, with the department retaining the power to audit, examine, and revoke approval if standards are not met. Additionally, the legislation mandates that all forms of medical malpractice coverage, including self-insurance and captive arrangements, meet specific state-set limits and undergo annual renewal. Finally, the bill requires these entities to report claims, settlements, and judgments to relevant medical licensing boards within 30 days.