Professionals Advocate Insurance Company - Medical Malpractice Rate Filing
The purpose of this filing is to update the Rating Instructions - State Exceptions to change the Extended Reporting Period (Tail) rating for professional organizations. Previously the tail charge for professional organizations was calculated by applying a factor to each tail charge calculated for each professional individual for which the insured organization has vicarious liability. Now the tail charge for professional organizations will be calculated by applying a factor to the highest premium charged for the professional organization at the termination date of the current policy term or the 2 immediately preceding policy terms in which policy coverage was provided. Rather than just modifying the paragraphs in the General Rating Instructions that are specific to tail rating for professional organizations, we have restated the entire tail rating section to make it easer to understand for the reader. No change was made to tail rating for individuals. We have also added a sentence to the end the rating instructions for each type of coverage form saying that Extended Reporting Period rating instructions are contained in the Extended Reporting Period ("Tail") sections. In the Premium Discounts section of the Individual Professional Liability Form rating instructions, we have clarified that the Prepayment Discount applies to additional premium due for mid-term policy changes. In the Suspension of Coverage section, we clarilfied by individuals rated as an Other Health Care Professional (as listed in the Rate Tables) are not eligible for suspension of coverage. In addition, we have added a Premium Payment section to the Rules State Exceptions to describe the billing for additional premium due for mid-term changes on policies being paid in installments. The rule states that additional premium due for the current quarter (from the effective date of the change to the next regular installment) will be payable on the effective date of the change unless it is a small amount of the total remaining policy premium due or there is a regularly scheduled installment shortly after the effective date of the change. The remaining premium due will be divided among the remaining installments. Previously we had waited until the next installment to bill additional premium due regardless of how large the amount was. We have updated the Cancellation and Nonrenewal section of the Rules State Exceptions to state that we may provide written notice of nonrenewal electronically or by mail which is permitted by statute.