NV MED-MAL RATES TO RISE

August 27, 2001

Continental Casualty Company; America Casualty Company of Reading, Penn; and Transportation Insurance Company (collectively CNA) received approval from Nevada Insurance Commissioner Alice A. Molasky-Arman to increase its medical malpractice rates 52 percent, rather than the proposed 100 percent requested. The original application submitted by CNA proposed statistical support for an increase of 100 percent, but Division of Insurance actuaries challenged the credibility of the support, and countered with a recommendation for a reduced increase. The new rates are expected to become effective sometime after Aug. 2, 2001, which is still to be determined by the company. Typically, the commissioner would tend not to approve an increase for an insured greater than 20 percent annually; however, due to the serious deficiency in CNA’s current rates, she approved the rates in conformance with Nevada law. CNA, one of the larger writers of medical malpractice liability insurance, insuring 300 doctors, has not changed its rates since the inception of its medical malpractice liability program in Nevada in 1994. CNA is also consolidating its business and will only continue business in Continental Casualty Company. Medical malpractice rates have been spiraling nationwide.

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Insurance Journal West August 27, 2001
August 27, 2001
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