Professionals Advocate Insurance Company - Medical Malpractice Rate Filing
The purpose of this filing is to update the Rating Instructions 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. 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. We updated the Premium Payment section of the General Rules Exceptions to remove the reference to the finance charge. We will no longer apply that charge. We also 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. 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. We have also updated the Rules Applicable to District of Columbia Approved Forms and Endorsements section of the Rules State Exceptions to reflect the updated edition number of the form that was filed.