Illinois’ Biggest Med Mal Insurer to Impose Moratorium on New Business

November 15, 2002

ISMIE Mutual Insurance Co., the largest medical malpractice insurer in Illinois, has decided to impose a moratorium on accepting any new business after January 1, 2003.

According to a report in the Chicago Tribune ISMIE had 13,788 policies in force at the beginning of this month, a 15 percent increase since the end of last year. The company has taken notice of the problems of other med mal insurers throughout the U.S., and is acting to protect its capital and surplus (around $240 million) while they are still in a healthy position.

The article notes the irony that new business for a med mal insurer isn’t necessarily good news, given the current conditions affecting the industry. As more claims are being filed and higher damage awards are being assessed, insurers have been raising premiums, and in many cases have opted to pull out of selected markets that they’ve determined are too risky and/or unprofitable.

Although ISMIE has increased its premiums by an average of 15 percent this year, that’s well below what many other states have seen. The insurer said it would still insure doctors who join clinics that it already covers and doctors fulfilling residency requirements, and will reexamine the moratorium on new business later next year.

Topics Carriers Illinois

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