UNDER SUPERVISION IN OKLAHOMA:

Oklahoma Insurance Commissioner Carroll Fisher announced that medical malpractice insurers, Physicians Liability Insurance Co. (PLICO) and Hospital Casualty Co., have been placed under formal supervision by the Oklahoma Insurance Department. The move comes after months of on-site monitoring by the department, and was necessitated by the companies’ financial condition. PLICO writes medical liability insurance for physicians and Hospital Casualty provides coverage for hospitals. Together they account for nearly 72 percent of the premiums written in Oklahoma for medical liability insurance. Fisher said both companies are paying current bills in a timely fashion, but that the action was necessary for the long-term survival of the companies. In recent months, Fisher approved significant rate increases for both companies. He noted that the state’s third largest writer of medical malpractice insurance has requested permission to more than double its rates, and that request is being considered. Under the supervision, the companies are required to provide a rehabilitation plan to the insurance department. In addition, they need the commissioner’s approval to enter into certain contracts, such as transfers of property, mergers with other companies or reinsurance agreements. Fisher said he expects the companies to be fully rehabilitated but offered no target date for removal of supervision.

Topics Oklahoma