Physicians Preferred Malpractice Insurance Company Converts from a Reciprocal to a Stock Company
Physicians Preferred Insurance Company has successfully converted to a Florida stock company following the overwhelming approval of its subscribers.
Physicians Preferred, which writes medical malpractice insurance, was originally formed as an insurance reciprocal in the fall of 2004. The conversion to a stock company became effective January 1, 2008.
The conversion will not result in any changes to the professional liability insurance policies issued by Physicians Preferred prior to the conversion or the coverages and benefits of existing policies, according to Elliott Horovitz, company founder and Chief Executive Officer of the insurance company.
“Due to the steady growth of Physicians Preferred, we believe that the conversion to a stock company is a logical step for the company’s future,” explained Horovitz. “As a reciprocal insurer, Physicians Preferred was limited to raising capital from its insureds or from retained profits or from debt equity sources. As a stock company, we can raise capital as and when needed to pursue our business objectives. It offers us greater opportunities to compete with other malpractice insurers.
“And, perhaps the best reason for conversion, is the company can enroll physicians upon payment of a premium alone, rather than the premium plus surplus. This will give our company a greater ability to attract and retain customers for our insurance products,” Horovitz added.
Physicians Preferred, which is based in Jacksonville, Florida, currently insures more than 1,100 doctors in various specialties throughout the state.