The fund's provisions shall apply to claims filed against physicians who
are covered by insurance policies effective on or after the effective date of
Funding Requirements and Limitations
The fund shall require $25 million.
The fund shall apply only to jury awards (not settlements) for pain and
suffering over $300,000 up to $1 million.
The fund shall pay out claims on the fund at the end of each year.
If there are insufficient funds to pay out 100% of the awards in any one
year, the fund shall prorate the payment of the year's claims on the fund.
Any excess portion of the fund after the initial pay out (minus any
administrative costs) shall be prorated among claims on the fund where
the jury awards were over $1 million for pain and suffering. Any excess
funding existing after this second payout shall be applied pro rata to
unpaid claims of the fund from previous years.
Personal Liability Immunity
The bill shall provide personal immunity to physicians for pain and
suffering awards as long as the physicians maintain $1 million per event
and $3 million total medical malpractice insurance coverage.
Settlement of Claims
Insurance companies shall exercise good faith in settling claims.
Insurance companies shall carry out their fiduciary obligation of good faith
and fair dealing pursuant to Rova Farms.
The fund shall have a right to exercise a Rova Farms claim against an
In the event an insurer is held to not have exercised good faith, the insurer
shall be responsible for the entire judgment with no liability against the