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FAQ

The following questions and answers provide basic information for the questions we most often hear. After reading these answers please do not hesitate to contact us should you wish to further discuss on any of these topics.

Saving money sounds great. How do I get a quote?

To get a quote, you may call us at 904-482-4068 (toll free 866-577-0914) or apply online where you will have the option of completing the brief application online or downloading a copy in PDF. If you do not apply online, you can send your application to us by:

• E-Mail to: .(JavaScript must be enabled to view this email address)
• Fax to: 904-354-4813
• Mail to: MedMal Direct, One Independent Drive, Suite 3205, Jacksonville, FL 32202

Our office hours are from 7:30 am to 6:00 pm Monday through Friday.

Getting a quote takes a long time, right?

No. Our simple application takes less than 10 minutes to complete and we will provide you with a binding quote within 48 hours of receipt of a completed application.

I want to be insured with MedMal Direct, but my renewal isn’t for another 6 months. Should I switch now or wait until the renewal date?

You should switch now, because you will save money. Here’s how:

If you switch from your current carrier to MedMal Direct, your current carrier will charge you a cancellation fee equal to 10% of the “unearned” premium – essentially, the premium not yet paid to the carrier for the rest of the year. Since your premium savings with MedMal Direct will be significantly more than this cancellation fee, you will save money by switching to MedMal Direct now.

As an example, if your current policy runs from January 1 of this year to January 1 of next year, and you decide to switch to MedMal Direct on July 1, then the first six months of the year was “earned” premium and the last six months will be “unearned” premium. You will pay a penalty of 10% on the “unearned” premium to your current carrier. That is:

• Current annual premium = $25,000
• Switch mid-term: July 1
• Thus, “unearned” premium = $12,500
• Cancellation fee = 10% x $12,500
• Total cancellation fee = $1,250

If your premium savings from MedMal Direct is more than $1,250, then you will save more money by switching to MedMal Direct now rather than waiting for your renewal date. Since MedMal Direct has an average premium savings of 20%, then:

• MedMal Direct annual premium savings = 20% x $25,000 = $5,000
• Thus, net savings by switching to MedMal Direct now = MedMal Direct savings – current carrier’s cancellation fee
• MedMal Direct savings ($5,000) – cancellation fee ($1,250) = $3,750

I want to save money now. How do I cancel my policy with my current carrier?

It’s simple. We will provide you with a letter template that you may put on your own company letterhead or stationery and send to your current insurance carrier.

My insurance agent/broker will give me a quote from MedMal Direct anyway, right?

No. The only way in which you will be able to get a quote from MedMal Direct Insurance Company is directly from MedMal Direct Insurance Company. We are the only 100% direct write medical malpractice insurance company in Florida. We do not use independent agents/brokers; and they do not have access to sell our insurance policies. This business model saves you lots of money. It’s better to be direct!

You are a newer company. What kind of experience do you have?

MedMal Direct has a management team with over 100 years of combined experience. Having underwritten thousands of physicians and managed over 18,000 medical malpractice claims, the MedMal Direct staff of attorneys, CPA’s, MBA’s, and other licensed insurance professionals offers diversified expertise that is second-to-none.

Do I have access to the management team?

Yes! We are open from 7:30 am to 6:00 pm Monday through Friday. We are accessible online 24/7/365 and our management team is reachable via cell phone morning, noon, and night for any issue. Our customers and their satisfaction is our #1 priority, and it is our philosophy to be totally accessible to all of our clients.

What is medical malpractice?

Medical malpractice is a Tort in Civil Law that is defined as negligence committed by a professional health care provider resulting in harm to a patient. This arises when the healthcare provider’s performance of duties departs from what is considered standard for those with similar training and experience.

What kind of carrier are you?

MedMal Direct Insurance Company is a stock insurance company. We are licensed and regulated by the Florida Office of Insurance Regulation and are approved to sell medical malpractice insurance in Florida. We do so direct from our insurance company to you – the consumer.

Who owns MedMal Direct Insurance Company?

MedMal Direct Insurance Company is privately-held and owned by Florida residents, including many Florida physicians. We are managed with a long-term perspective with focus on:

• Providing the highest quality customer service in the industry.
• Aggressive defense of non-meritorious lawsuits.
• A steadfast commitment to the financial strength of our company.

We focus on our clients and their needs rather than those of Wall Street investors and analysts.

Could your policyholders be assessed?

No! While some companies may entice you with an unrealistically low rate and later “assess” you for more money, we do not and will not. The premium we charge for this year’s policy is the only premium that will ever be charged for that policy. Policyholders do not have any personal liability for losses incurred by our past claims.

Your quote is much less than my current premium. Are you just trying to get me to switch, only to raise my rates next year?

No. This is not a bait-and-switch scheme. Our premiums are closely regulated by the Florida Office of Insurance Regulation and are actuarially sound. Your low rate from MedMal Direct is a result of our DIRECT distribution model and our fair assessment of your risk. Our company’s profitability is a result of strict underwriting – only choosing the best risks combined with aggressive and prudent claims management.

Are you rated?

Yes. MedMal Direct has earned a Financial Stability Rating ® of A, Exceptional from Demotech, Inc. This level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards to policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves and realistic pricing. Financial Stability Ratings summarize the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle and utilize statutory financial data based on insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC).

Do you have reinsurance?

Yes. MedMal Direct Insurance Company has reinsurance coverage in place that adds even greater financial stability to the company.

Are your reinsurers rated?

Yes. MedMal Direct Insurance Company has a reinsurance treaty with a panel of international insurers including Lloyd’s of London and Bermuda based companies, all of which have an A.M. Best Financial Stability Rating of A, Excellent.

How can I verify information about your licensure, financial strength and rating?

MedMal Direct is licensed and regulated by the Florida Office of Insurance Regulation (FOIR) as a medical malpractice property and casualty insurance company. To verify our licensure (our Certificate of Authority), please go to the FOIR website company search page: http://www.floir.com/companysearch/

MedMal Direct, as required by the FOIR, files quarterly and annual statements and other information to the National Association of Insurance Commissioners (NAIC). To view our filed financial statements and other information, please go to the NAIC website company search page: https://eapps.naic.org/cis/

MedMal Direct has earned a Financial Stability Rating ® (FSR) of A, Exceptional, from Demotech, Inc. This level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards to policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves and realistic pricing. To verify our financial stability rating, please go to the Demotech, Inc. website: http://www.demotech.com/01_pages/fsr/company.aspx?id=13793&t=2

Do you defend frivolous claims?

Yes, aggressively!

At MedMal Direct Insurance Company we fully investigate and develop a litigation strategy within 90 days of receipt of the letter announcing the “Notice of Intent to Initiate Litigation” against one of our insureds. With full involvement of our insured, our highly experienced claims staff will assemble a winning plan utilizing the best defense attorneys and clinical experts. If there is a problem with the clinical management of a claim, then early resolution will be the goal; but if the allegations of negligence are defensible, then we will provide an aggressive defense of this frivolous litigation.

Who do you insure?

Physicians and Surgeons (M.D.‘s and D.O.‘s) – all specialties

• Professional Corporations of Physicians & Surgeons
• Doctors of Podiatric Medicine (D.P.M.‘s)
• Doctors of Chiropractic

Ancillary Clinical Personnel (aka Allied Healthcare Providers)

• Physician Assistants
• Advanced Registered Nurse Practitioners
• Nurse Midwives
• Certified Registered Nurse Anesthetists

Healthcare Facilities

• Clinical Laboratories
• Wellness / Fitness Centers
• Mammography Centers
• MRI Centers
• Community Health Centers
• Urgent Care Centers
• Physical / Occupational Rehabilitation Centers
• Outpatient Surgery Centers
• Cardiac Catherization Laboratories
• And more…

What limits of medical professional liability insurance do you offer?

We offer four limits for medical professional liability insurance:

1. $100,000 per incident, with a $250,000 annual aggregate
2. $250,000 per incident, with a $750,000 annual aggregate
3. $500,000 per incident, with a $1,500,000 annual aggregate
4. $1,000,000 per incident, with a $3,000,000 annual aggregate

Are separate limits available for my corporation?

Yes. MedMal Direct Insurance Company does offer separate limits for the insured’s corporation.

Are separate limits available for my allied healthcare personnel?

Yes. Separate limits are available for:

• Physician’s Assistants
• Nurse Practitioners
• Nurse Midwives
• Nurse Anesthetists

However, unless required by contractual obligations, we do not always recommend this.

What is Investigation Defense Coverage and is it provided?

Investigation Defense Coverage (also referred to by other companies as Broad Form Coverage or MediGuard Coverage) is provided by MedMal Direct Insurance Company with no additional premium charge. This Investigation Defense Coverage provides $25,000 per incident of legal expenses for defense of allegations concerning, but not limited to:

• Licensure matters before the Board of Medicine
• Billing statements
• EEOC
• CLIA
• COBRA
• OSHA
• Medicare / Medicaid regulatory proceedings and investigations

This coverage is standard in the industry for stock insurance companies in Florida.

How are legal costs and other claims expenses handled?

In addition to the policy limit, all legal costs and claims expenses are fully paid by MedMal Direct Insurance Company.

What defense attorneys do you use?

The MedMal Direct Insurance Company claims team has over 35 years of experience in handling thousands of medical malpractice claims. We are very familiar with the law firms who have specialized over the decades in representing physicians in this type of litigation. Rather than using a defined list of attorneys to whom we limit ourselves, we prefer to customize the defense team for each and every claim and wish to have your input on who is the best defense attorney for you in your particular case. In all cases however, you can rest assured that you will have the optimum defense team.

Can I save additional money by purchasing coverage with a deductible?

Yes. Proper implementation of a deductible is something to strongly consider when purchasing medical malpractice insurance. This reduces the price, and when an “indemnity only” deductible is chosen you pay only when a settlement is achieved or a jury verdict is rendered; with all of the defense costs being paid by MedMal Direct Insurance Company.

Do you cover “prior acts”?

Yes. MedMal Direct Insurance will provide “prior acts coverage”. With prior acts coverage we cover all incidents that occur after your retroactive date and that are reported to us while your policy is in force.

Do you provide “tail” coverage?

Yes. MedMal Direct Insurance offers an “Extended Reporting Period Endorsement”, which is commonly referred to as “tail” coverage. If this coverage is in place, then all claims that occurred after your retroactive date are covered, regardless of when the claim is reported to us.

Do you offer free tail coverage?

Yes. There will be no charge for an Extended Reporting Period Endorsement should any of the following events occur while the policyholder or insured physician is actively insured with us:

1. Death of the insured physician
2. Insured physician becomes disabled and cannot continue the practice of medicine
3. Insured physician fully retires from the practice of medicine at any age and has been continuously insured by us for the five years preceding retirement.

When might I be forced to purchase tail coverage?

The most common reason requiring you to purchase tail coverage is when you join or leave a group. Many group contracts demand that when you join the group, you do so without any prior-acts exposure; which means you must buy a tail policy from the existing carrier if you want your prior coverage to remain in place. Conversely, if you leave a group you are often required to purchase a tail policy from the group’s insurer to satisfy the group’s concern about completing your coverage during the time you were practicing with them.

Do you offer additional discounts for physicians with favorable claims histories?

Yes. Claims Free Discounts are provided based on the number of years you have not been involved in a claim or lawsuit. This discount may be combined with other discounts.

Do you offer coverage for my Locum Tenens practice?

Yes. If temporary coverage is required for a physician providing substitute coverage for an insured, locum tenens coverage may be added to the insured’s policy by endorsement. Coverage for this rule is in effect for up to 180 days.

What is the difference between a claims-made policy and an occurrence policy?

Claims-made policy coverage responds when claims are made against an insured. Occurrence policy coverage responds for claims that occur during a policy period, regardless of when the claim was made.

Do you offer Risk Management services?

Implementation of healthcare risk management is a leading contributor to the decrease in frequency and severity of litigation. We estimate that 50% of the lawsuits are generated from communication problems between human beings, 30% are generated from system errors, and 20% are generated from the actual clinical practice of medicine. It is our goal to encourage all of our insureds to continue their Continuing Medical Education and assist in implementation of risk management solutions to address the communication and system problems.

It is with that goal in mind that we offer risk management services to all of our insureds, including:

• Office audits by a licensed healthcare risk manager
• Continuing education for physicians and surgeons as well as for their staff
• Legal case summaries with analysis and opinion
• Forms and checklists for analysis of systems
• Tips for reducing and avoiding risk exposure
• Articles from news sources pertinent to healthcare
• Articles authored by our highly experienced staff
• Glossary of Insurance Terms

For more information about our risk management offerings please contact us directly.