MIIX Insurance Management Resigns

MIIX Insurance Management Resigns

NU Online News Service, Oct. 1, 4 :27 p.m. EDT?The MIIX Insurance Company, a Lawrenceville, N.J.-based medical malpractice carrier that was in voluntary runoff, has been put under state supervision for rehabilitation and its management has resigned.[@@]

New Jersey Superior Court in Trenton granted the order of rehabilitation on Sept. 28 naming the commissioner of the New Jersey Department of Banking and Insurance as rehabilitator with immediate and exclusive control over the business and property of MIIX Insurance.

All directors and officers of MIIX Insurance and of its two subsidiaries--Lawrenceville Holdings, Inc. and MIIX Insurance Company of New York--resigned from their positions, effective Sept. 28.

Under the order, the company--a subsidiary of The MIIX Group, Inc., The MIIX Group and New Jersey State Medical Underwriters, Inc.--will continue to provide administrative services to MIIX Insurance under the current management services agreement until terminated by the department after appropriate notice.

MIIX Group said the order does not stay payment of claims for any litigation currently pending against MIIX Insurance or its insureds and does not bar claimants from filing new actions against MIIX Insurance insureds. However, the order does prohibit any new legal action or new claim directly against MIIX Insurance without permission of the court.

Before it began piling up losses, the MIIX Group insured about 5,000 physicians and other medical providers and more that 20 hospitals and health care organizations.