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A bill to be entitled

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An act relating to medical malpractice insurance; creating

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s. 627.41485, F.S.; prohibiting an insurer from issuing

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legal defense coverage for the purpose of providing legal

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defense services in conjunction with a claim for medical

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negligence or medical malpractice unless certain

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conditions exist; providing a penalty for the issuance of

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such insurance in contravention of such conditions;

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requiring that financial responsibility be in effect at

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the time any legal defense coverage is issued by the

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insurer or invoked by a physician or osteopathic

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physician; requiring that such financial responsibility

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remain in effect throughout the period of legal

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representation provided under such legal defense coverage;

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providing that legal defense coverage is null and void if

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a physician fails to maintain the required financial

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responsibility; requiring that an insurer issuing certain

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types of legal defense coverage require a physician to

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show proof that he or she maintains a specified type of

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financial responsibility; requiring that a physician

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notify an insurer of any change in the status of his or

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her financial responsibility; authorizing the issuance of

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professional liability coverage for medical malpractice or

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medical negligence, including legal defense coverage, in

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conjunction with indemnity; authorizing the issuance of

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legal defense coverage under certain circumstances;

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providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Section 627.41485, Florida Statutes, is created

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to read:

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     627.41485 Medical malpractice insurance legal defense

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coverage.--

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     (1) An insurer may not issue legal defense coverage for the

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purpose of providing legal defense services in conjunction with a

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claim for medical negligence or medical malpractice unless such

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coverage is issued to a physician licensed under chapter 458 or

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an osteopathic physician licensed under chapter 459 who has in

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effect at the time such coverage is issued financial

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responsibility in accordance with one of the following methods in

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the per-claim amount applicable to such physician or osteopathic

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physician:

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     (a) Establishing and maintaining an escrow account in

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accordance with s. 458.320(1)(a) or (2)(a) or s. 459.0085(1)(a)

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or (2)(a);

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     (b) Maintaining professional liability coverage in

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accordance with s. 458.320(1)(b) or (2)(b) or s. 459.0085(1)(b)

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or (2)(b); or

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     (c) Obtaining and maintaining an unexpired, irrevocable

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letter of credit in accordance with s. 458.320(1)(c) or (2)(c) or

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s. 459.0085(1)(c) or (2)(c).

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     (2) The required financial responsibility must be in effect

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at the time any legal defense coverage is issued by the insurer

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or invoked by the physician or osteopathic physician and must

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remain in effect throughout the period of legal representation

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provided under such legal defense coverage.

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     (3) If a physician or osteopathic physician fails to

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maintain financial responsibility as required by this section for

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purposes of purchasing legal defense coverage, such coverage is

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null and void and such insurer is not liable for providing legal

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defense services.

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     (4) Any insurer issuing legal defense coverage or services

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in accordance with this section shall require a physician or

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osteopathic physician to show proof that he or she maintains

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financial responsibility in accordance with subsection (1) before

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issuing any coverage or services to such physician or osteopathic

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physician. Such physician or osteopathic physician must

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immediately notify the insurer of any change in the status of his

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or her financial responsibility.

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     (5) Any insurer issuing or providing legal defense coverage

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to any physician or osteopathic physician licensed in this state

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in contravention of this section commits a violation of the

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insurance code and is subject to the appropriate penalties.

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     (6) This section does not prohibit the issuance of

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professional liability coverage for medical malpractice or

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medical negligence, including legal defense coverage, in

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conjunction with indemnity.

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     (7) This section does not prohibit the issuance of legal

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defense coverage to any physician or osteopathic physician for

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purposes of the defense of any disciplinary, administrative,

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contractual, or criminal action brought by any federal or state

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regulatory board or agency, or any public or private entity,

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including, but not limited to, any health care provider, health

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plan, or health insurer.

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     Section 2.  This act shall take effect upon becoming a law.