Mississippi HB 250: Nursing homes; require to purchase and maintain a minimum amount of liability insurance.

Bill Text

HB 250 (As Introduced) - 2020 Regular Session 

MISSISSIPPI LEGISLATURE

2020 Regular Session

To: Insurance

By: Representative Evans (91st)

House Bill 250

AN ACT TO REQUIRE NURSING HOMES TO PURCHASE AND MAINTAIN A 
CERTAIN MINIMUM AMOUNT OF LIABILITY INSURANCE; TO AMEND SECTIONS 43-11-7 AND 43-11-9, 
MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING PROVISION; AND FOR 
RELATED PURPOSES.

���� BE IT ENACTED BY THE 
LEGISLATURE OF THE STATE OF MISSISSIPPI:

���� SECTION 1.� 
(1)� Any owner or operator of any nursing home shall purchase and maintain not 
less than One Million Dollars ($1,000,000.00) in liability insurance for each 
nursing home.� The liability insurance shall cover each resident per occurrence 
of negligence.� For the purposes of this section, "nursing home" 
means any nursing home, personal care home, assisted living facility, 
retirement home, convalescence home or facility, hospice care services, home 
health service, long-term care facility, or any facility which provides medical 
treatment care, personal care, supervision, medicine, nutrition or other 
custodial palliative and rehabilitative care to the elderly, infirm, disabled 
or incapacitated.

���� (2)� The liability coverage 
amount described in this section shall include coverage for indemnity of the 
insured only.� The cost of defending the insured shall not be covered.

���� (3)� No person may 
establish, own or operate a nursing home in the state unless and until the 
person provides proof of liability insurance coverage as described under this 
section to the State Department of Health.

���� (4)� The owner or operator 
of any nursing home shall disclose to the patient or other person with whom the 
owner or operator is contracting at the signing of a contract or the initial 
agreement to provide nursing home care whether the owner or operator carries 
liability insurance.� The disclosure shall be written, the structure and 
composition of which shall be determined by the State Department of Health, and 
shall be placed immediately before the space reserved in the contract for the 
signature of the patient or other person with whom the owner or operator is 
contracting to provide nursing home care.� The disclosure shall be boldfaced 
and conspicuous type which is larger than the type of the remaining text of the 
contract.� The owner or operator of any nursing home shall also prominently 
display such disclosure in a conspicuous location in each of his nursing home 
facilities.

���� (5)� The State Department of 
Health shall suspend or revoke the license or certificate of any nursing home 
whose owner or operator violates the provisions of this section.

���� SECTION 2.� Section 
43-11-7, Mississippi Code of 1972, is amended as follows:

���� 43-11-7.� Any person, as 
defined in Section 43-11-1, may

apply for a license as provided 
in this section.� An application for a license shall be made to the licensing 
agency upon forms provided by it and shall contain such information as the 
licensing agency reasonably requires, which may include affirmative evidence of 
the ability to comply with such reasonable standards, rules and 
regulations as are lawfully prescribed under this chapter.� An application 
for a license to operate a nursing home also shall include affirmative evidence 
of the ability to comply with the requirement of liability insurance coverage.� 
Each application for a license for an institution for the aged or infirm, 
except for personal care homes, shall be accompanied by a license fee of Twenty 
Dollars ($20.00) for each bed in the institution, with a minimum fee per 
institution of Two Hundred Dollars ($200.00), which shall be paid to the 
licensing agency.� Each application for a license for a personal care home 
shall be accompanied by a license fee of Fifteen Dollars ($15.00) for each bed 
in the institution, with a minimum fee per institution of One Hundred Dollars 
($100.00), which shall be paid to the licensing agency.

���� Any increase in the fee 
charged by the licensing agency under this section shall be in accordance with 
the provisions of Section 41-3-65.

���� No governmental entity or 
agency shall be required to pay the fee or fees set forth in this section.

���� SECTION 3.� Section 
43-11-9, Mississippi Code of 1972, is amended as follows:

���� 43-11-9.� (1)� Upon receipt 
of an application for license and the license fee, the licensing agency shall 
issue a license if the applicant and the institutional facilities meet the 
requirements established under this chapter and the requirements of Section 41-7-173 
et seq., where determined by the licensing agency to be applicable.� A license, 
unless suspended or revoked, shall be renewable annually upon payment by (a) 
the licensee of an institution for the aged or infirm, except for personal care 
homes, of a renewal fee of Twenty Dollars ($20.00) for each bed in the 
institution, with a minimum fee per institution of Two Hundred Dol