PriMed Consulting - Medical Malpractice Insurance NY, NJ, WV
More changes to the NY Malpractice standard market

More changes to the NY Malpractice standard market

13 Mar 2019
13, Mar Mar, 2019

Hospitals Insurance Company (HIC) and FOJP Service Corporation (FOJP), together with Mount Sinai Health System, Montefiore Health System & Maimonides Medical Center have entered into an agreement to sell HIC and FOJP to The Doctors Company (TDC) for $650M. The deal is proposed to close in 2019, if approved by the NYS Dept of Financial Services. Both carriers are admitted in the NY market, but this has the potential of improving the status of both companies.

One of the outstanding questions is how the filed rates of both HIC and TDC will be impacted. Currently, HIC has more competitive rates, but are restricted to insuring providers who work at one of these hospitals. The rates at TDC are higher, but they do have the advantage of offering their Tribute Plan, established in 2007 and exclusive to TDC. It is a retirement plan that is very attractive to physicians who can recoup some of their malpractice payments to the carrier over time. TDC sets aside 10% of the premiums for eligible members, which are put into a “subscriber savings” plan for every year that they are with TDC and can be claimed once the provider retires from practice, also building carrier loyalty.

The Doctors Company is relatively new in the NY marketplace, but has been offering malpractice solutions to providers in the other 49 states for many years. They were founded in April of 1976 & headquartered in Napa, California. They are 100% member owned, making them the largest physician-owned insurer in the nation. Since 2008, they have acquired several insurance companies, adding to their financial strength and presence in the malpractice arena. They are rated A by AM Best and Fitch Ratings.

Hospitals Insurance Company was established 40 years ago & writes $180M in premium volume. Their target market is physicians that provide care in at least one of the hospital systems mentioned above. They recently expanded their market to include physician extenders in 2018. They are rated A by AM Best.

FOJP provides insurance & risk management advisory services to academic hospitals, long term care facilities, and social service agencies in the metropolitan NY area. They were established in 1977 to help identify & mitigate risk factors to control losses.

What is a stand alone “tail” policy?

21 Apr 2014
21, Apr Apr, 2014

If you are looking for options to “tail out” or purchase an extended reporting period, we can help. At PriMed Consulting, we can obtain various tail quotes for you so you do not need to pay the high premium you may have been quoted by your current carriers. We have access to many carriers in NY & NJ that will look at your exposure over the time you have been on your Claims-Made policy. These carriers will determine a competitive premium in line with your particular risk.
A “stand alone tail” or an extended reporting period is a policy to cover any claim that could be made from a patient seen after yourclaims-made retroactive date. This can cover you after you have retired or if you have gone on to a hospital policy, a new claims-made policy or changed over to occurrence. Tail policies can be unlimited; where they cover you for an unlimited period of time or can be written to only cover you for a certain period of time, maybe 5-10 years. It is important tail of some form be purchased so you have coverage should a claim come in once you claims-made policy is no longer in effect.

For help exploring your Medical Malpractice Insurance Stand Alone Tail Policy please call PriMed Consulting.