Nev. Commissioner Says She Can’t Make Insurers Operate at a Loss

Nevada Insurance Commissioner Alice Molasky-Arman said during a hearing March 4 on the malpractice crisis that she can’t make insurers do business at a loss, according to the Associated Press.

Molasky-Arman commented that if companies can justify their rates through appropriate data, she must approve them. Adding that she is operating within limits given her, Molasky-Arman noted that while state laws require rates to not be excessive, they need to be adequate.

According to the Insurance Division, short-term solutions to cut rates include putting together a joint underwriting association with the state, forming a doctors’ mutual insurance company, or asking present companies to come up with new plans.

The Associated Press report points out that one possible long-term answer to the problem include going before the state Legislature for tort reform comparable to that in California, where a $250,000 cap on jury awards related to pain and suffering exists.

Prior to enacting emergency insurance options to keep coverage for all medical personnel, Nevada law required the commissioner to hold a public hearing to decide the availability of needed coverage.

At the hearing, Molasky-Arman received input from doctors representing the Nevada State Medical Association, The Nevada Trial Lawyers Association, and representatives of the state’s nursing homes.

A number of companies, including St. Paul Cos., Chicago-based Interstate Insurance Co., and National Union Fire Insurance Co. of New York have indicated they will cease providing coverage in Nevada when their present policies expire.

Topics Carriers Profit Loss Nevada