| A: |
Our 8,500+ carefully selected Members
share the liability of all claims up to an attachment point
of $1 million per claim. A consortium of reinsurers led by Converium
Re (A.M. Best A+) protects the Trust for claims above that point.
At year-end 2004, our MPT assets totaled $253 million, including
over $98 million in an interest-bearing Trust Fund. Our independent
actuaries have estimated our Members' liability for known
claims at $94.6 million.
The financial Strength of the Mutual Protection Trust has earned a
rating of A (Excellent) from A.M. Best Company.
|
| A: |
Having collected additional reserve money, a claims-made
carrier charges an annual premium for all claims that are
expected to be reported. For this reason, once a physician
reports a claim, and hence the claim is made,
the carrier may now resolve it using the funds already collected.
Once the carrier assumes liability for a claim the physician
may leave and secure retroactive coverage from a new carrier.
The claims-paid approach is different. Since the
Trust does not collect reserves, the Members pay less on
average from year to year. In return for lower costs, the
Member promises either to remain with the Trust until any
pending claim is resolved, or to secure tail coverage through
a variety of programs that your Membership Development Representative
will explain.
|
