Profession
Citing tort reform, insurer jumps into Illinois market
NEWS IN BRIEF — Posted Sept. 3, 2007
Competition is on the rise in Illinois' medical liability insurance market. Texas-based Medicus Insurance Co. credited recent tort reforms as an incentive to launch business in Illinois in August. Lawmakers in 2005 passed a $500,000 cap on noneconomic damages, among other measures.
Medicus President and Chief Operating Officer Sheldon Davidow said the reforms have contributed to an improved climate. He cited a drop in lawsuit filings as one factor that has allowed the company to offer affordable policies to doctors. The company covers about 200 Illinois doctors in various specialties.
Davidow also said he believes the damage cap will survive a pending constitutional challenge. Nevertheless, even if it fails, Medicus plans to stay, he said.
The Illinois State Medical Society said it welcomed the return of a competitive market.
In 2001, there were 18 licensed medical liability insurers writing policies in the state. That number dropped to eight carriers in 2003, according to ISMS. So far in 2007, there are 13 licensed insurers writing policies, including Medicus.
"It's our hope that incoming insurers view Illinois as a long-term investment," said ISMS President Rodney C. Osborn, MD.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/09/03/prbf0903.htm.
