MDNews - Mid Hudson

+++++++++++++++++ + + +++++++++++++++++ INSURANCE  +++ +++ New York State Insurance Department to offer physician and surgeon policyhold- ers a claims-free discount, effective July 1, 2011. This new and important benefit will provide a 7.5% premium discount to those physicians and surgeons who qualify and who are insured for professional liability coverage through MLMIC. Currently, 54% of MLMIC- insured physicians will qualify for the discount. The discount may also apply to new applicants who provide claims-free loss histories and meet the qualifications. To qualify, a physician must have been in practice for a minimum of five years, and he or she must have no open claims and no closed claims with paid indemnity or expense within the five-year period immediately preceding June 15, 2011, regardless of the accident date or report date. Below are answers to anticipated questions about receiving MLMIC’s claims-free discount: 1. Do I have to apply to receive the discount? a. If you are a current physician policy- holder with sufficient experience on file with MLMIC (at least a five-year history) and have completed your specialty renewal application within the past two years, updating any previous carrier’s loss experience, the claims-free discount will auto- matically be applied to your renewal premium on July 1, 2011 if you qualify. b. If you are a current physician policy- holder without sufficient experience on file with MLMIC (less than a five-year history), but have com- 16 | Mid Hudson MD NEWS  MDNEWS.COM MLMIC Announces M New Claims-Free Discount For Physicians EDICAL LIABILITY MUTUAL I n s u r a nc e Comp a ny (MLMIC) has recent ly received the approval of the pleted a specialty renewal application update within the past two years and have provided loss histories that demonstrate you qualify, the pre- mium discount can be applied. c. If you are a new applicant seeking the claims-free discount, you must fill out an application and provide loss histories that demonstrate your qualification. 2. If a physician has a closed claim with no indemnity payment within the last five years, would the physician qualify for the claims-free discount? Unfortunately, if the claim had any paid claim expense, the physician would not qualify for the discount. Regardless of a claim’s merit or the amount paid in a judgment or settlement, a claim has an additional financial impact on MLMIC in the form of claim expense (mainly defense attorney fees). Claim expense is still paid by the company, even if a claim is closed without an indemnity payment. 3. Does the discount apply if a policy- holder is receiving another discount? The claims-free discount will also apply to policyholders participating in the Voluntary Attending Physician (VAP) Program or who receive a part-time and/or risk-management discount. The discount will not apply if the policyholder is receiv- ing any other discount, e.g., the new doctor discount. 4. Does reporting an incident or event that could reasonably lead to a claim in the future disqualify a physician from the claims-free discount? No, reporting an incident is encouraged and would be considered an event (not a claim) by MLMIC. Therefore, it would not disqualify a physician from the discount. 5. If a physician has purchased optional defense costs coverage (“defense only coverage”) from MLMIC and reports a defense only claim, would this disqualify the physician from the discount? No, defense cost coverage is not professional liability coverage but a separate optional coverage purchased by the physician. Therefore, reporting a defense only claim would not impact the claims-free discount. 6. Does the discount apply to entity policies? Yes, if the physician members qualify for the discount, the discount will be ref lected in the calculation of the entity premium. However, an entity does not receive a claims-free discount based upon its own experience. 7. Does the discount apply to policies issued to physician extenders who are supervised and/or employed by a claims-free physician? No, extenders are not subject to the discount program. 8. What happens if a claim is subse- quently reported that disqualifies the physician for a claims-free discount? The claims-free discount will be removed the next policy year begin- ning on the following July 1. MLMIC f iled thi s program with the New York State Insurance Department because its actuaries have indicated that past favorable claim experience is strongly indicative of what can be expected in future years. Therefore, it stands to reason that pol ic yholder s who are claims-free should receive a reduction in premium. n

• Cover