Medical malpractice insurer MIIX Group, which is in runoff status, has alerted the New Jersey Department of Banking and Insurance of the need to increase its loss and allocated loss adjustment expense reserves based on the progress of the annual audit to date. The company expects to complete its analysis by mid-March when it will issue its earnings release. MIIX acknowledged that the increase in reserves, given the company’s marginal surplus levels, would have a materially adverse effect. It expects to delay filing its statutory financial statements. It has also entered into discussions with its reinsurers regarding possible commutations of treaties for some or all years. If the company is unable to successfully negotiate commutations, the reinsurers are likely to seek to increase premiums payable by the company if it records a significant reserve adjustment or falls short of other stipulated contract provisions, including the failure to maintain appropriate trust fund balances. Such increases could, depending on their amounts and timing, materially and adversely affect the company.
Was this article valuable?
Here are more articles you may enjoy.
US Efforts to End Iran War Stumble as Ship Seized Near UAE 
New York State Has Budget Deal That Includes Auto Insurance Reforms: Gov. Hochul 
Health Officials Downplay Pandemic Risk From Cruise Hantavirus Outbreak 
High-Powered Dads Are Spending Less Time at Work, More on Childcare From This Issue
