Texas Medical Liability Trust announced that effective Jan. 1, 2006, it will reduce medical liability rates for new policyholders by 5 percent across the board. Current TMLT policyholders will receive this rate decrease when their policy renews. TMLT has reduced rates three times since the passage of House Bill 4 and Proposition 12, 12 percent in 2004, 5 percent in 2005 and another 5 percent in 2006.
TMLT’s Board of Governors also voted to pay TMLT policyholders dividends based on projected 2005 Trust earnings and a strong capital position, beginning Jan. 1, 2006.
The dividend declared for 2005 is $10 million. For each policyholder, the dividend amount will equal approximately 5 percent of their expiring 2005 premium. Dividends will be credited to each policyholder’s premium as a lump sum when their policy renews in 2006.
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