It also increases the number of investigators for the State Medical Disciplinary Board and doubles fines to $10,000 for Medical Practice Act violations.

Another provision provides that a regulatory hearing can be held when an insurance company increases its malpractice rates more than 6 percent with the burden on the company to prove its rates are not excessive, inadequate or discriminatory.

Companies that are found to be willful violators can be penalized.

The law also encourages discounts for insureds' participation in risk management activities and requires malpractice insurers to report loss, actuarial and reserve information and make it available to the public.

Steve Schneider, American Insurance Association Vice President, Midwest Region reacted, saying that "more can be done to help keep doctors in Illinois."

He said, "While the caps on non-economic damages are a welcome provision, additional liability reforms should be considered to provide more stability in the market and [to] offset the onerous insurance regulations that will do little to encourage insurers to re-enter Illinois.

Mr. Schneider predicted that despite the new law, the state's medical malpractice insurance market "will likely remain in a state of 'status quo' for some time because of the threat of judicial invalidation of the law and the normal marketplace adjustment period seen after a new law is enacted."