EDUCATION CODE
CHAPTER 59. MEDICAL MALPRACTICE COVERAGE FOR CERTAIN INSTITUTIONS
SUBCHAPTER A. MEDICAL PROFESSIONAL LIABILITY
§ 59.01. DEFINITIONS. In this subchapter:
(1) "Medical staff or students" means medical doctors,
doctors of osteopathy, dentists, veterinarians, and podiatrists
appointed to the faculty or professional medical staff employed for
student health services by The University of Texas System, The
Texas A & M University System, the Texas Tech University Health
Sciences Center, or the University of North Texas Health Science
Center at Fort Worth , either full time or who, although appointed
less than full time (including volunteers), either devote their
total professional service to such appointment or provide services
to patients by assignment from the department chairman; and
interns, residents, fellows, and medical or dental students,
veterinary students, and students of osteopathy participating in a
patient-care program in The University of Texas System, The Texas A &
M University System, the Texas Tech University Health Sciences
Center, or the University of North Texas Health Science Center at
Fort Worth.
(2) "Medical malpractice claim" means a cause of
action for treatment, lack of treatment, or other claimed departure
from accepted standards of care which proximately results in injury
to or death of the patient, whether the patient's claim or cause of
action or the executor's claim or cause of action under Section
71.021, Civil Practice and Remedies Code, sounds in tort or
contract.
(3) "Board" means the board of regents of The
University of Texas System, the board of regents of The Texas A & M
University System, the board of regents of Texas Tech University,
or the board of regents of the University of North Texas.
(4) "Fund" means the medical professional liability
fund.
(5) "Charitable care or services" means all care or
services provided for free or at discounted amounts at or below
actual costs based on the ability of the beneficiary to pay and
specifically includes all care and services provided to
beneficiaries covered by Medicare and Medicaid.
(6) "Medical and dental unit" has the meaning assigned
by Section 61.003 of this code.
Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, § 1(a),
eff. Sept. 1, 1983. Amended by Acts 1985, 69th Leg., ch. 117, §
3(a), eff. Sept. 1, 1985; Acts 1985, 69th Leg., ch. 854, § 1,
eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 1070, § 3, eff. May
15, 1988; Acts 1989, 71st Leg., ch. 2, § 6.02(a), eff. Aug. 28,
1989; Acts 1991, 72nd Leg., ch. 832, § 1, eff. Sept. 1, 1991;
Acts 1993, 73rd Leg., ch. 408, § 7, eff. Aug. 30, 1993.
§ 59.02. MEDICAL PROFESSIONAL LIABILITY
FUND. (a) Each board may establish a separate self-insurance
fund to pay any damages adjudged in a court of competent
jurisdiction or a settlement of any medical malpractice claim
against a member of the medical staff or students arising from the
exercise of his appointment, duties, or training with The
University of Texas System, The Texas A & M University System, the
Texas Tech University Health Sciences Center, or the University of
North Texas Health Science Center at Fort Worth.
(b) The boards may pay from the funds all expenses incurred
in the investigation, settlement, defense, or payment of claims
described above on behalf of the medical staff or students.
(c) On the establishment of each fund, transfers to the fund
shall be made in an amount and at such intervals as determined by
the board. Each board may receive and accept any gifts or donations
specified for the purposes of this subchapter and deposit those
gifts or donations into the fund. Each board may invest money
deposited in the fund, and any income received shall be retained in
the fund. The money shall be deposited in any of the approved
depository banks of The University of Texas System, The Texas A & M
University System, the Texas Tech University Health Sciences
Center, or the University of North Texas Health Science Center at
Fort Worth. All expenditures from the funds shall be paid pursuant
to approval by the boards.
Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, § 1(a),
eff. Sept. 1, 1983. Amended by Acts 1989, 71st Leg., ch. 2, §
6.02(a), eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 408, § 8,
eff. Aug. 30, 1993.
§ 59.03. RULES. Each board may adopt rules for the
establishment and administration of the fund and the negotiation,
settlement, and payment of claims as necessary to carry out the
purpose of this subchapter. Each board may establish by rule
reasonable limits on the amount of claims to be paid from the fund
or to be provided in purchased insurance.
Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, § 1(a),
eff. Sept. 1, 1983. Amended by Acts 1989, 71st Leg., ch. 2, §
6.02(a), eff. Aug. 28, 1989.
§ 59.04. PURCHASE OF INSURANCE. Each board may purchase
medical malpractice insurance from an insurance company authorized
to do business in this state as it considers necessary to carry out
the purpose of this subchapter.
Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, § 1(a),
eff. Sept. 1, 1983. Amended by Acts 1989, 71st Leg., ch. 2, §
6.02(a), eff. Aug. 28, 1989.
§ 59.05. LEGAL COUNSEL. Each board may employ private
legal counsel to represent the medical staff and students covered
by this subchapter under the rules of the board.
Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, § 1(a),
eff. Sept. 1, 1983. Amended by Acts 1989, 71st Leg., ch. 2, §
6.02(a), eff. Aug. 28, 1989.
§ 59.06. LIMITATION ON APPROPRIATED FUNDS. Funds
appropriated by the legislature to either system, to the Texas Tech
University Health Sciences Center, or to the University of North
Texas Health Science Center at Fort Worth from the General Revenue
Fund may not be used to establish or maintain the fund, to purchase
insurance, or to employ private legal counsel.
Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, § 1(a),
eff. Sept. 1, 1983. Amended by Acts 1989, 71st Leg., ch. 2, §
6.02(a), eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 408, § 9,
eff. Aug. 30, 1993.
§ 59.07. EXEMPTION FROM INSURANCE CODE; REPORT. The
establishment and administration of each fund under this subchapter
and the rules of the boards do not constitute the business of
insurance as defined and regulated in the Insurance Code. However,
the boards of regents shall annually report to the State Board of
Insurance information appropriate for carrying out the functions of
the State Board of Insurance.
Added by Acts 1983, 68th Leg., p. 996, ch. 235, art. 2, § 1(a),
eff. Sept. 1, 1983. Amended by Acts 1989, 71st Leg., ch. 2, §
6.02(a), eff. Aug. 28, 1989.
§ 59.08. STATE INDEMNIFICATION. (a) The state shall
indemnify a member of the medical staff or a student for damages
paid as required by a judgment on or settlement of a medical
malpractice claim arising out of the provision of charitable care
or services.
(b) State liability for indemnification under this section
may not exceed:
(1) $100,000 for each defendant for each occurrence;
and
(2) $250,000 for each occurrence for all defendants.
(c) The state is not liable for indemnity under this section
for damages found by the trier of fact to result from fraud, malice,
or gross negligence.
(d) The state may not charge or assess a board, a medical and
dental unit, or any fund or account of a board or medical and dental
unit for any amount of indemnification paid or to be paid by the
state under this section.
(e) The attorney general is entitled to approve any
settlement of the portion of a medical malpractice claim that may
result in the state being liable for indemnification of the
defendant under this section. If the attorney general does not
approve a settlement, the state is not liable for indemnification
of the defendant under this section. The attorney general shall
base the determination on the best interests of the defendant.
(f) This section prevails over any other law, including
Chapter 104, Civil Practice and Remedies Code, to the extent of any
conflict.
Added by Acts 1991, 72nd Leg., ch. 832, § 2, eff. Sept. 1, 1991.
SUBCHAPTER B. VETERINARY MALPRACTICE COVERAGE PURCHASED BY TEXAS A &
M
§ 59.21. DEFINITIONS. In this subchapter:
(1) "Board" means the board of regents of The Texas A &
M University System.
(2) "Fund" means the veterinary medical diagnostic
professional liability fund.
(3) "Professional staff" means veterinarians,
diagnosticians, toxicologists, pathologists, microbiologists, and
other professional employees employed by the Texas Veterinary
Medical Diagnostic Laboratory, including the director.
(4) "Veterinary malpractice claim" means a cause of
action for damages resulting proximately from negligence in
performing diagnostic services, toxicological and other diagnostic
analyses, and in making recommendations for treatment.
Added by Acts 1989, 71st Leg., ch. 2, § 6.02(a), eff. Aug. 28,
1989.
§ 59.22. VETERINARY MEDICAL DIAGNOSTIC PROFESSIONAL
LIABILITY FUND. (a) The board may establish a separate
self-insurance fund to pay any damages adjudged in a court of
competent jurisdiction or a settlement of any veterinary
malpractice claim against a member of the professional staff
arising from the exercise of his appointment or duties with the
Texas Veterinary Medical Diagnostic Laboratory.
(b) The board may pay from the fund all expenses incurred in
amounts and at intervals determined by the board.
(c) The board may receive and accept any gifts or donations
into the fund.
(d) The board may invest money deposited in the fund, and
any income received shall be retained in the fund. The money shall
be deposited in any of the approved depository banks of The Texas A &
M University System. All expenditures from the fund shall be paid
pursuant to approval by the board.
Added by Acts 1989, 71st Leg., ch. 2, § 6.02(a), eff. Aug. 28,
1989.
§ 59.23. RULES. The board may adopt rules for the
establishment and administration of the fund and the negotiation,
settlement, and payment of claims as necessary to carry out the
purpose of this subchapter. The board may establish by rule
reasonable limits on the amount of claims to be paid from the fund
or to be provided in purchased insurance.
Added by Acts 1989, 71st Leg., ch. 2, § 6.02(a), eff. Aug. 28,
1989.
§ 59.24. PURCHASE OF INSURANCE. The board may purchase
veterinary medical malpractice insurance from an insurance company
authorized to do business in this state as it considers necessary to
carry out the purpose of this subchapter.
Added by Acts 1989, 71st Leg., ch. 2, § 6.02(a), eff. Aug. 28,
1989.
§ 59.25. LEGAL COUNSEL. The board may employ private
legal counsel to represent the professional staff covered by this
subchapter under the rules of the board.
Added by Acts 1989, 71st Leg., ch. 2, § 6.02(a), eff. Aug. 28,
1989.
§ 59.26. LIMITATION ON APPROPRIATED FUNDS. Funds
appropriated by the legislature to the Texas Veterinary Medical
Diagnostic Laboratory from the General Revenue Fund may not be used
to establish or maintain the fund, to purchase insurance, or to
employ private legal counsel.
Added by Acts 1989, 71st Leg., ch. 2, § 6.02(a), eff. Aug. 28,
1989.
§ 59.27. EXEMPTION FROM INSURANCE CODE; REPORT. The
establishment and administration of the fund under this subchapter
and the rules of the board do not constitute the business of
insurance as defined and regulated in the Insurance Code. However,
the board shall annually report to the State Board of Insurance
information appropriate for carrying out the functions of the State
Board of Insurance.
Added by Acts 1989, 71st Leg., ch. 2, § 6.02(a), eff. Aug. 28,
1989.
§ 59.28. ADDITIONAL COMPENSATION. Malpractice
liability coverage authorized by this subchapter is provided as
additional compensation to the professional staff.
Added by Acts 1989, 71st Leg., ch. 2, § 6.02(a), eff. Aug. 28,
1989.
