The Healthcare Underwriters Group Mutual of Ohio, a medical liability insurance company owned and governed by the state’s doctors, has received authorization from the insurance department to begin issuing insurance policies to doctors. HU, based in Columbus, is the only insurance company domiciled in the state that offers Ohio doctors ownership and governance of the company as well as protection against claims of malpractice. HU is a mutual insurance company. The new company is nonprofit and does not carry a premium load for profit. Additionally, HU will operate as a nonassessable mutual, meaning that policyholders cannot be “assessed” to pay for losses if HU’s losses are greater than anticipated. HU said in a statement that it has secured high-quality reinsurance for extraordinary losses. If, on the other hand, losses are less than anticipated, HU’s policyholder-owners may receive either a dividend payment or a reduction in future premiums. Dividend payments and premium reductions are both subject to approval by the insurance department. The company said it will take an aggressive approach to defending claims, including an intolerance of nuisance claims.
Topics Carriers
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