NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

 

 

CHAPTER 623

HOUSE BILL 567

 

 

AN ACT TO CREATE A NORTH CAROLINA PROFESSIONAL LIABILITY INSURANCE STUDY COMMISSION.

 

The General Assembly of North Carolina enacts:

 

Section 1.  Commission created, purpose. There is hereby created a Professional Liability Insurance Study Commission. The commission shall have the responsibility to make a thorough and comprehensive study on any and all aspects of professional liability insurance including but not limited to the following:

(1)        The problems which insurance companies face in writing professional liability insurance in North Carolina and other states of the Union.

(2)        The problems which professionals (particularly professionals in the health care professions) have in obtaining professional liability insurance in North Carolina, including problems dealing with the adequacy of coverage, limits of coverage, availability of coverage and reasonableness of rates.

(3)        The desirability and feasibility of: (a) Affording professional liability insurance through the establishment of a State-operated fund or insurance company; (b) Creating a State Administrative Board or Commission with the necessary expertise to hear and determine questions of fact relating to professional malpractice and the amount of damages injured persons are entitled to recover resulting therefrom; (c) Implementing compulsory arbitration procedures for the determination of professional malpractice disputes; and (d) Improving the quality of professional services through strict supervision and control by State licensing boards.

(4)        The desirability and feasibility of (a) amending the Statute of Limitations with reference to professional malpractice claims; (b) eliminating contingent fee contracts between attorneys and clients in malpractice claims; and (c) implementing a joint underwriting association or reinsurance pool underwritten by insurers or the State or federal government.

Sec. 2.  Appointment of membership; composition; tenure of office. The commission shall consist of 12 members who shall be appointed as follows: The Speaker of the House shall appoint six members, four persons from membership of the House, one person representing insurance companies writing professional liability insurance in this State and one person who shall be a professional in the delivery of health care services in this State. The President of the Senate shall appoint six members, four from the membership of the Senate, one person representing insurance companies writing professional liability insurance in this State, and one person who shall be a professional in the delivery of health care services in this State. The members shall serve until the termination of the commission. If a vacancy occurs in the membership, the appointing authority shall appoint another person to serve until the termination of the commission. Members of the commission shall take office upon their appointment. The commission shall terminate upon the filing of a report with the General Assembly.

Sec. 3.  Duty to report. The commission shall submit a written report and recommendations, including recommended legislation, to the General Assembly on or before March 15, 1976, or as soon thereafter as practicable.

Sec. 4.  Organization of commission; employment of professional and clerical staff. The members of the commission shall elect one of their members as chairman and one member as vice-chairman. The chairman shall preside at all meetings of the commission and in his absence the vice-chairman shall act as chairman. The commission is authorized to employ such professional and clerical staff and assistants as are necessary to the performance and execution of its duties from such funds as shall be made available for this purpose.

Sec. 5.  Compensation and reimbursement of members. (a) Legislator members of the commission shall be reimbursed for subsistence and travel expenses at the rates set out in G.S. 120-3.1 from funds available to the commission.

(b)        The other members of the commission who are not officers or employees of the State shall receive compensation and reimbursement for travel and subsistence expenses at the rates set out in G.S. 138-5 from funds available to the commission.

(c)        The members of the commission who are officers or employees of the State shall receive reimbursement for travel and subsistence expenses at the rates set out in G.S. 138-6 from funds available to the commission.

Sec. 6.  State departments and agencies to cooperate. Upon request of the commission, State departments and agencies shall provide the commission with any information and assistance that the commission shall deem helpful to its inquiry.

Sec. 7.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 16th day of June, 1975.