Frequently Asked QuestionsQ: Does CAP offer coverage to physicians in all specialties and all locations in California?

A: Yes.

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Q: How secure is the Trust?

A: Our 9,600+ carefully selected Members share the liability of all claims up to an attachment point of $1 million per claim.

At year-end 2007, our combined assets totaled $313 million, including over $170 million in an interest-bearing Trust Fund. Our independent actuaries have estimated our Members' liability for known claims at $79.2 million.

The financial Strength of the Mutual Protection Trust has earned an A+ (Superior) Rating from A.M. Best Company.

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Q: What coverage limits are available?

A: Most Members choose coverage limits of $1 million per claim, $3 million annual aggregate. Limits of $2 million/$4 million and higher are available.

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Q: What is the difference between claims-made coverage and claims-paid coverage?

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.

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