The Different Types Medical Liability Insurers

side note: The link below references a recent press release from MMIC Group, which provides medical malpractice insurance to physicians, clinics, hospitals and other healthcare facilities, primarily in Minnesota, Iowa, Nebraska, Kansas, Missouri, North Dakota, South Dakota and Wisconsin. The press release announces that MMIC Group received final regulatory approval to change from a stock holding company to a mutual insurance company. I think this presents a great opportunity to review the differences between the types of medical malpractice insurers and the different benefits they offer.

There are several types of insurance companies and other sources for purchasing medical malpractice insurance. The most common are:

• Physician-owned carriers: Owned by the physician-insureds of the company.

• Commercial carriers: Owned by stockholders.

• Risk Retention Groups: Formed as an insurance company under the Risk Retention Act of 1986, must follow the insurance laws of at least the state in which it is domiciled. A capital contribution is generally required when
joining a  risk retention group.

• Risk Purchasing Group: An association of insurance buyers with a com-mon  identity who join together to purchase insurance as a group.

• Joint Underwriting Association: A JUA is a state-sponsored insurer of last resort for physicians unable to obtain coverage from another insurer. Policies are generally assessable by the insured and/or all casualty insurers operating in the state.