HUGFL Opens To Fla. Doctors

Like a mutual, participating doctors are owners of the plan, which is a non-profit. Participants are not to be assessed for losses, but should losses be less than anticipated, participants would either see a dividend payment or a reduction in future premiums.

HUGFL said it has secured reinsurance "for extraordinary losses."

No specialty will be excluded from the plan, Ms. Hess said.

To open the reciprocal, the company had to have $5 million in capital before the license was issued.

Ms. Hess added that those who join the program should see premium rates that are "competitive with the current market."

HUGFL said that a physician board of directors, a Subscriber's Advisory Committee, will review actuarial data and make recommendations for establishing annual premiums. The members will also be involved in setting underwriting and claims handling policies.

Ms. Hess said that nearly 2,000 doctors have contacted HUGFL for information. The program is processing 290 applications, and by the end of the first full month of operation it expects to have 150 confirmed policyholders.

Bob Lotane, a spokesman for the Florida Office of Insurance Regulation, said this is the second reciprocal in the state to open its doors to doctors to provide medical malpractice insurance.

The first reciprocal was Florida Healthcare Providers Insurance Exchange, based in Miami and owned by Duane Morris LLP, a law firm in Pennsylvania (see NU Online Aug. 8, 2003).