Fla. & Ky. See New Med-Mal Programs

By Mark E. Ruquet

NU Online News Service, Aug. 19, 3:16 p.m.EDT--Two new insurance groups are forming in Florida andKentucky to provide liability and malpractice insurance to medicalprofessionals.

In Florida, Duane Morris, LLP, announced it is seekingregulatory permission to form a reciprocal insurance exchange toprovide medical malpractice insurance to doctors in the state.

In a reciprocal, the policyholders share insurance risk, payingpremium and contributing capital to the program.

The program, named Florida Healthcare Providers InsuranceExchange, would be headquartered in Miami. Duane Morris is a lawfirm of 550 attorneys.

In a statement, the firm said the program would be similar toits Pennsylvania Exchange.

"Recognizing a market need for medical malpractice insurancecoverage in Florida, we are utilizing the successful experience ofour Pennsylvania Exchange, which provides medical malpracticeinsurance to physicians in Pennsylvania," said Charles C. PappyIII, a partner in charge of Duane Morris' Miami office.

Thomas S. Gaudiosi would serve as president and chief executiveofficer of the program.

David Fridling, senior media relations manager for Duane Morris,said the program would be open to any physician so long at theymeet the underwriting conditions of the program and agree to theprogram's reporting requirements, something that not all doctorsmay want to do.

He said he was not sure what the coverage limits would bepending approval.

Mr. Fridling said Florida Exchange has just filed itsapplication with the department and hopes approval will come intime to issue policies taking effect Jan. 1, 2004.

Duane Morris said it would also look to partner withself-insured hospitals and health systems "to work cooperatively onrisk management and claims management efforts."

In Kentucky, the Louisville, Ky.-based Kentucky HospitalAssociation said it has formed the Kentucky Hospital Insurance Co.to provide liability and malpractice coverage to 22 memberhospitals.

KHIC is a Kentucky-based captive insurer, the first of this typein the state. The plan will be capitalized with credit assistanceprovided by Republic Bank & Trust Co.

Guy Carpenter & Co. Inc. acted as the broker and Lloyd's ofLondon syndicates will provide reinsurance.

The plan offers primary professional-general liability limitsbetween $1 million and $3 million, with optional umbrella coverageup to $10 million.