<ul><li>Please answer the following questions either  True  or  False . </li></ul><ul><li>1. All medical malpractice insur...
<ul><li>How to select the right insurance company </li></ul><ul><li>What are the determining factors that insurance compan...
<ul><li>Make sure the insurance company is an admitted carrier in your state </li></ul><ul><li>admitted carriers are prote...
<ul><li>Insurance company’s rates are determined by the historical loss experience of all their policyholders by specialty...
<ul><li>Your carrier should offer discounts for: </li></ul><ul><li>Loss Free </li></ul><ul><li>Part Time </li></ul><ul><li...
<ul><li>A claims made policy represents the greatest savings – premium is low during the first 4 years and achieves a matu...
<ul><li>Most states do not require specific insurance limits </li></ul><ul><li>Many believe that by purchasing higher limi...
<ul><li>Never wait to change insurance carriers. </li></ul><ul><li>Insurance carriers must refund any unearned premium. </...
<ul><li>Please answer the following questions either  True  or  False . </li></ul><ul><li>1. All medical malpractice insur...
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Introduction to Medical Malpractice Insurance

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Introduction to Medical Malpractice Insurance

  1. 2. <ul><li>Please answer the following questions either True or False . </li></ul><ul><li>1. All medical malpractice insurance companies are the same. </li></ul><ul><li>2. It is better to have a carrier with an A.M. Best Rating rather than have an admitted carrier. </li></ul><ul><li>3. You should always choose the highest limits of coverage an insurance carrier offers. </li></ul><ul><li>4. Your malpractice insurance rates are primarily determined by your specialty type and the geographic location of your practice. </li></ul><ul><li>5. Insurance company rates for malpractice are based on the overall past loss experience of their policyholders </li></ul><ul><li>6. It is best to wait until the expiration date of an insurance policy before changing insurance carriers. </li></ul>
  2. 3. <ul><li>How to select the right insurance company </li></ul><ul><li>What are the determining factors that insurance companies use to determine your premium price </li></ul><ul><li>What are the standard discounts </li></ul><ul><li>What is a claims made policy </li></ul><ul><li>What policy limits to choose </li></ul><ul><li>When is the best time to change insurance companies </li></ul>
  3. 4. <ul><li>Make sure the insurance company is an admitted carrier in your state </li></ul><ul><li>admitted carriers are protected by the state’s insurance guarantee fund </li></ul><ul><li>admitted carriers are highly regulated by your state’s insurance department </li></ul><ul><li>AM Best ratings do not ensure that the carrier is regulated by your state or participates with the guarantee fund </li></ul><ul><li>Make sure the insurance company has stringent underwriting controls </li></ul><ul><li>80% of all claims come from 20% of the doctors - companies who include the 20% group have to charge higher premiums to all of their doctors risk selection means selecting the right doctor – a specialty doesn’t have claims, but the individual doctor practicing that specialty might </li></ul><ul><li>Make sure to evaluate top management’s experience </li></ul><ul><li>make sure top management understands medical malpractice from both an underwriting and claims perspective do they write other lines of business, or only specialize in medical malpractice </li></ul>
  4. 5. <ul><li>Insurance company’s rates are determined by the historical loss experience of all their policyholders by specialty and geographical location. </li></ul><ul><li>A doctor’s malpractice insurance rates are determined by the doctor’s specialty and the geographical location the practice is located in. </li></ul><ul><li>Policy limit will affect the premium </li></ul><ul><li>The final premium price includes any applicable discounts </li></ul>
  5. 6. <ul><li>Your carrier should offer discounts for: </li></ul><ul><li>Loss Free </li></ul><ul><li>Part Time </li></ul><ul><li>New Physician </li></ul><ul><li>Risk Management </li></ul><ul><li>Electronic Fund Transfer (EFT) </li></ul>
  6. 7. <ul><li>A claims made policy represents the greatest savings – premium is low during the first 4 years and achieves a mature rate in the 5 th year. </li></ul><ul><li>Provides coverage for claims arising from incidents which occur and are reported during the time the policy is in force. </li></ul><ul><li>Claims reported after the policy is discontinued are covered only if tail coverage or prior acts coverage is purchased. </li></ul><ul><li>The majority of medical malpractice policies issued in the U.S. are claims made policies. </li></ul>
  7. 8. <ul><li>Most states do not require specific insurance limits </li></ul><ul><li>Many believe that by purchasing higher limits of liability doctors become targets of the plaintiff attorneys </li></ul><ul><li>When deciding on limits, need to focus on practical and business requirements – most medical practices accept referrals from or make referrals to other physicians </li></ul><ul><li>In the case of a lawsuit, both the referring doctor and the referred doctor will be named in the lawsuit </li></ul><ul><li>Therefore – the referral or referred doctor with the highest limits will be thought of as the “most recoverable” by plaintiff’s attorney. You don’t want to jeopardize your referral relationships by being the underinsured in this process. Be consistent with the doctors we network with </li></ul><ul><li>Choose limits that fit your practice </li></ul>
  8. 9. <ul><li>Never wait to change insurance carriers. </li></ul><ul><li>Insurance carriers must refund any unearned premium. </li></ul><ul><li>Waiting until your renewal date may cost you the opportunity to change if the opportunity is no longer being offered. </li></ul><ul><li>A physician’s insurability and an insurance company’s capacity are perishable. If a superior product and value are available right now, it makes good sense to act upon it right now. </li></ul>
  9. 10. <ul><li>Please answer the following questions either True or False . </li></ul><ul><li>1. All medical malpractice insurance companies are the same. False, they are not all the same. </li></ul><ul><li>2. It is better to have a carrier with an A.M. Best Rating rather than have an admitted carrier. False, it is more important to have an admitted carrier. </li></ul><ul><li>3. You should always choose the highest limits of coverage an insurance company offers. False, you should choose what is right for your practice. </li></ul><ul><li>4. Malpractice insurance rates are primarily determined by your specialty type and the geographic location of your practice. True. </li></ul><ul><li>5. Insurance company rates for malpractice are based on the overall past loss experience of their policyholders. True </li></ul><ul><li>6. It is best to wait until the expiration date of an insurance policy before changing insurance company. False, it is best to change whenever you are offered a better product for an affordable price. </li></ul>

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