Profession
N.J. doctors likely to see losses after insurer insolvency
NEWS IN BRIEF — Posted May 5, 2008
Some New Jersey physicians could get stuck with settlement payments after a trial court in April dissolved what used to be the state's largest medical liability insurance carrier.
MIIX Insurance Co. stopped writing policies in 2002 after going insolvent. The New Jersey Dept. of Banking and Insurance took control of the state-based company in 2004 and settled most of its outstanding claims.
The recent court order leaves more than 200 New Jersey cases unresolved. Insurance regulators expect to settle about 100 of those claims.
But roughly half of the settlements may exceed the $300,000 maximum payments made by the state guaranty fund, which backs up doctors' coverage if their liability insurer goes out of business. That would leave some doctors personally liable for any remaining payouts.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2008/05/05/prbf0505.htm.
