Determination of need for professional liability fund.

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(2) The director may not make a determination to implement a professional liability fund if:

(a) The lack of availability of insurance is due to legitimate insurance underwriting considerations, including past claims experience, licensing noncompliance or inadequate risk management; and

(b) Actuarial studies show that private insurers are adequately setting rates for professional liability coverage, that a professional liability fund would not ultimately provide insureds lower premiums and that there is not an adequate number of potential insureds to fund a professional liability fund.

(3) The director may contract for actuarial studies in order to make the determinations required by this section. [1987 c.774 §89; 1989 c.966 §68]


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