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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

A FREE 12-page special report from Captive.com

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance explores the challenges presented by today's business and economic upheaval, as well as the hardening insurance market, and what it means for the captive insurance industry.

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The Ongoing Evolution of Medical Professional Liability Insurance Providers

Doctor Family
July 31, 2015

In the mid-1970s, the legislative solution to the lack of availability of medical professional liability insurance in a number of states was to create a joint underwriting association (JUA) or authority. In New England, New Hampshire and Maine were two states that created these entities.

In 1976, the New Hampshire insurance commissioner created the New Hampshire Medical Malpractice Joint Underwriting Association to make medical malpractice insurance available to the growing number of medical providers who had difficulty purchasing coverage from private insurers. Thirty-nine years later, the New Hampshire Insurance Department recommended the wind down and dissolution of the New Hampshire JUA based upon a 2015 department report, Report on Availability of Medical Malpractice Insurance. The report found that medical malpractice insurance was readily available. Subsequently, the winding down and dissolution of the JUA was approved when the New Hampshire State Legislature enacted and the governor signed H.B. 508.

The Maine state legislature took similar action in the mid 1970s and created a JUA as a temporary solution with a statute that was set to expire in 1979. However, there was one major difference in Maine’s approach. That difference was the creation of what would now be described as a “‘captive.”

Realizing there could be a continuing availability issue, the Maine Medical Association contracted consultants to study the feasibility of starting a physician-owned insurance company to serve Maine’s medical community. In 1978, a group of physicians incorporated a mutual (captive), Medical Mutual Insurance Company of Maine, which now provides coverage to physicians and hospitals in Maine as well as New Hampshire and Massachusetts where it is an admitted insurer. However, it has yet to choose to take advantage of the benefits of multistate licensing afforded by the Federal Liability Risk Retention Act.

The lack of medical professional liability coverage is no longer the issue it was during the hard markets that were in part the impetus for the enactment of the Federal Liability Risk Retention Act of 1986. Today, medical professional liability coverage is the primary line of business for approximately 135 risk retention groups.

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