Malpractice Actions - Health Facilities - Health & Safety - CA

Section § 1305

This law requires health facilities with professional liability insurance, or those that are self-insured, to report any court judgment or settlement over $3,000 involving personal injury claims due to mistakes or negligence in their professional services to the state at least once a year. This includes services performed without consent.

If no such cases result in judgments or settlements over $3,000 in a year, the facility must report this fact as well.

(a) Every insurer providing professional liability insurance to a health facility licensed pursuant to this chapter and every health facility or associated group of health facilities licensed pursuant to this chapter under common ownership which are self insured shall report periodically, but in no event less than once each year, to the state department any final judgment over three thousand dollars ($3,000) rendered against such health facility during the preceding year in, or any settlement over three thousand dollars ($3,000) during the preceding year of, a claim or action for damages for personal injuries caused by an error, omission, or negligence in the performance of its professional services, or by the performance of its professional services without consent.

(b) In the event that there are no final judgments or settlements in excess of three thousand dollars ($3,000) during the year such fact shall also be reported to the department.

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Section § 1306

This law states that insurance companies cannot settle a claim for more than $3,000 without the insured person's written consent. However, if a settlement happens without this consent, it won't be considered invalid. Both the insured and insurer can agree to skip the written consent requirement. This rule applies only to insurance policies created or renewed after January 1, 1971.

Notwithstanding any other provision of law, no insurer shall enter into a settlement exceeding three thousand dollars ($3,000) to settle a claim or action referred to in Section 1305 without the written consent of the insured, except that this prohibition shall not void any settlement entered into without such written consent.

The requirement of written consent can only be waived by both the insured and the insurer.

The provisions of this section shall only apply to a settlement on a policy of insurance executed or renewed on or after January 1, 1971.

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Section § 1307

This law requires the state department to maintain a record of all reports submitted under Section 1305.

The state department shall keep a record of all reports made pursuant to Section 1305.

state department record keeping report documentation Section 1305 compliance ...

Section § 1308

This law requires the state health department to inform all licensed health facilities and their liability insurance providers about the rules in this article.

The state department shall notify every health facility licensed pursuant to this chapter and every insurer providing professional liability insurance to such health facilities of the provisions of this article.

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