Opinion ID: 2636873
Heading Depth: 1
Heading Rank: 4

Heading: Primary Coverage.

Text: .... 4. In interpreting the scope of requisite coverage under K.S.A. 1996 Supp. 40-3402(a), the intent of the legislature governs if that intent can be ascertained. This is a fundamental rule of statutory construction. See City of Wichita v. 200 South Broadway, 253 Kan. 434, 436, 844 P.2d 956 (1993). `In order to ascertain the legislative intent, courts are not permitted to consider only a certain isolated part or parts of an act, but are required to consider and construe together all parts thereof in pari materia. When the interpretation of some one section of an act according to the exact and literal import of its words would contravene the manifest purpose of the legislature, the entire act should be construed according to its spirit and reason, disregarding so far as may be necessary the strict letter of the law.' Kansas Commission on Civil Rights v. Howard, 218 Kan. 248, Syl. ¶ 2, 544 P.2d 791 (1975).' Todd v. Kelly, 251 Kan. at 516 (emphasis added by Todd omitted). In construing the various sections of the Health Care Provider Insurance Availability Act (the Act), `the entire Act must be considered and ... no one section should be read in isolation from the others.' The citation is Todd v. Kelly, 251 Kan. at 516, 517. 5. The various provisions of the Act, read in pari materia, reflect that only one policy limit is available here. 6. K.S.A. 40-3408 establishes the limit of an insurer's liability: The insurer, e.g., KaMMCO, `shall be liable only for the first $200,000 of a claim for personal injury or death arising out of the rendering of or the failure to render professional services by such health care provider.' KaMMCO's policy provides coverage consistent with these limits. Therefore, consistent with K.S.A. 40-3408, KaMMCO's liability in this case is limited to `the first $200,000 of [Plaintiff's] claim for personal injury.' 7. Furthermore, K.S.A. 1996 Supp. 40-3402(a) itself uses the terms `per occurrence' and `claim' interchangeably by setting a limit `per occurrence' but an annual aggregate limit per `claim.' 8. The legislative history of the Act is also instructive as to the intent of the legislature and the extent of coverage mandated by the Act. 9. What is now K.S.A. 1996 Supp. 40-3402(a) was originally recommended by a special committee appointed in 1975 to study the medical malpractice insurance crisis. During special committee hearings, Fletcher Bell, then Commissioner of Insurance, submitted a specimen claims-made policy as an example in explaining the shift from occurrence-based insurance to claims-made insurance. 10. The specimen policy provided by Commissioner Bell obligated the insurer to pay on behalf of the Insured `all sums which the Insured shall become legally obligated to pay as damages because of any claim or claims made against the Insured during the policy period arising out of the performance of professional services rendered or which should have been rendered.' Dr. Ramirez's KaMMCO policy contains language identical to the language in the sample claims-made policy which Commissioner Bell submitted to the legislature. 11. The specimen claims-made policy submitted to the legislative special committee by Commissioner Bell stated: `The limit of liability stated in the Declarations as applicable to `each claim' is the limit of the Company's liability for loss resulting from any one claim or suit or all claims or suits first made during the policy period because of injury to or death of any one person.' Dr. Ramirez's KaMMCO policy contains language identical to the language used in the sample policy submitted by Commissioner Bell. 12. Therefore, the KaMMCO policy at issue here provides coverage identical to the coverage provided under the sample claims-made policy upon which the legislature based what is now K.S.A. 1996 Supp. 40-3402(a). .... 14. K.S.A. 40-3402(a) requires that each health care provider have a professional liability policy which has been `approved by the commissioner.' The KaMMCO policy issued to Dr. Ramirez was approved by the Insurance Commissioner. 15. The KaMMCO policy issued to Dr. Ramirez is consistent with the statutory coverage mandated by the Health Care Provider Insurance Availability Act. The KaMMCO policy is identical to the sample claims-made policy upon which the statutory scheme was based. Additionally, the policy is consistent with the intent of the legislature as derived from reading all provisions of the Act together. 16. Contrary to Plaintiff's assertions, the legislature's use of the word `occurrence' one time in the statutory scheme and the KaMMCO policy's failure to use the same term does not render the KaMMCO policy ineffective or inconsistent with the statutorily mandated insurance coverage.