§ 34-18-4-1 Methods of establishment

34-18-4-1 Methods of establishment

    Sec. 1. Financial responsibility of a health care provider and the provider's officers, agents, and employees while acting in the course and scope of their employment with the health care provider may be established under subdivision (1), (2), or (3):


    (1) By the health care provider's insurance carrier filing with the commissioner proof that the health care provider is insured by a policy of malpractice liability insurance in the amount of at least two hundred fifty thousand dollars ($250,000) per occurrence and seven hundred fifty thousand dollars ($750,000) in the annual aggregate, except for the following:

        (A) If the health care provider is a hospital, as defined in this article, the minimum annual aggregate insurance amount is as follows:

            (i) For hospitals of not more than one hundred (100) beds, five million dollars ($5,000,000).

            (ii) For hospitals of more than one hundred (100) beds, seven million five hundred thousand dollars ($7,500,000).

        (B) If the health care provider is a health maintenance organization (as defined in IC 27-13-1-19) or a limited service health maintenance organization (as defined in IC 27-13-34-4), the minimum annual aggregate insurance amount is one million seven hundred fifty thousand dollars ($1,750,000).

        (C) If the health care provider is a health facility, the minimum annual aggregate insurance amount is as follows:

            (i) For health facilities with not more than one hundred (100) beds, seven hundred fifty thousand dollars ($750,000).

            (ii) For health facilities with more than one hundred (100) beds, one million two hundred fifty thousand dollars
($1,250,000).

    (2) By filing and maintaining with the commissioner cash or surety bond approved by the commissioner in the amounts set forth in subdivision (1).

    (3) If the health care provider is a hospital or a psychiatric hospital, by submitting annually a verified financial statement that, in the discretion of the commissioner, adequately demonstrates that the current and future financial responsibility of the health care provider is sufficient to satisfy all potential malpractice claims incurred by the provider or the provider's officers, agents, and employees while acting in the course and scope of their employment up to a total of two hundred fifty thousand dollars ($250,000) per occurrence and annual aggregates as follows:

        (A) For hospitals of not more than one hundred (100) beds, five million dollars ($5,000,000).

        (B) For hospitals of more than one hundred (100) beds, seven million five hundred thousand dollars ($7,500,000).

    The commissioner may require the deposit of security to assure continued financial responsibility.