§ 26-33-105 — Medical liability compensation account

(a) There is created a medical liability compensation
account, the monies of which shall be collected by the
commissioner for exclusive use for the purposes stated in this
chapter. The account and any investment income from it shall be
held in trust and invested and reinvested by the state treasurer
pursuant to W.S. 9-4-715(a), (d) and (e).
(b) The commissioner may use account monies to purchase
insurance for the account and its obligations. The commissioner
shall be notified of a suit within thirty (30) days from the
date the suit is filed. The commissioner may participate in a
physician's defense if any claim is sufficient to be a potential
liability against the account. Reasonable legal expenses the
board approves and the commissioner incurs in defense against
any malpractice claim are payable out of the account.
(c) To create the account, all physicians qualified under
W.S. 26-33-102, practicing in Wyoming and who elect to
participate, shall pay an annual surcharge. The commissioner
shall determine the surcharge based upon sound actuarial
principles using data obtained from Wyoming experience. The
surcharge shall not exceed one hundred fifty percent (150%) of
the cost to each physician for a basic fifty thousand dollar
($50,000.00) malpractice insurance premium and shall be
collected on the same basis as premiums by each insurer from the
physician.
(d) The surcharge is due and payable within thirty (30)
days after the insurer receives the premiums for malpractice
liability insurance from the practicing physician in Wyoming.
The commissioner shall send to each insurer a statement
explaining the provisions of this section together with any
other information necessary for their compliance with this
section.
(e) If the insurer collects the annual premium surcharge
but does not pay it to the state within the stated time limit,
the commissioner may suspend the insurer's certificate of
authority until the annual premium surcharge is paid.
(f) All expenses of collecting, protecting and
administering the account or related to the purchase of
insurance for the account shall be paid from the account. The
commissioner may employ financial, administrative or legal
consultants to assist in the account management.
(g) If the account balance exceeds four million dollars
($4,000,000.00) at the end of any calendar year after payment of
all claims and expenses, the commissioner shall reduce the
surcharge to maintain the account at an approximate level of
four million dollars ($4,000,000.00).
(h) The commissioner shall purchase reinsurance, if
needed, to protect the account from depletion due to judgment
against it. The reinsurance so purchased shall cover each
qualified physician from two hundred fifty thousand dollars
($250,000.00) to one million dollars ($1,000,000.00) per year.
Cost of reinsurance shall be paid from the monies of the
account.