Policyholders Cheer New Dividend Plan, Partial End to Moratorium

Ever since ISMIE Mutual introduced a pilot dividend program and announced that we were accepting new policyholders, the reaction has been overwhelmingly positive. With hundreds of physicians and media
outlets across the state clamoring for information, ISMIE responded with several detailed communications, including an all-policyholder mailing and continuing with press releases, Web postings and articles in our weekly e-mail newsletter, ISMIE-news.

Dividend plan rewards loyal policyholders
First, a recap: If you’ve been continuously insured with ISMIE since July 1, 2005, you are eligible to receive a dividend when you renew your policy beginning July 1, 2007. The first dividend, to be applied to your annual
premium over four years, will be based on ISMIE’s loss experience for the 2005-2006 policy year. The actual dividend amount will be announced in April when ISMIE completes its annual rate determination.

But policyholders are interested in more than just the basics. That’s why we took the most Frequently Asked Questions and posted them on the ISMIE Web site. These FAQs touch on important topics, such as: What prompted us to offer a dividend plan? How will the actual dividend amount be determined? Why are dividends being paid out over four installments? Answers to these and other questions can be found at www.ismie.com.

Doors open April 1 for new business
Meanwhile, the moratorium placed on new business four years ago is coming to an end. The partial lifting of the moratorium means ISMIE can protect up to an additional 400 exposures, beginning April 1, 2007. Applications, some of which are already under review, will be considered only at policy renewal and are subject to ISMIE’s underwriting guidelines.

Trial lawyers challenge litigation reform law
These exciting programs are the result of litigation reforms enacted in 2005. In November, however, plaintiff attorneys filed suit in Cook County challenging the constitutionality of the new law. This attack, if it succeeds, will again drive physicians from the state, restrict patient access to care and enrich the pockets of trial lawyers.

To defend the case, ISMIE and the Illinois State Medical Society have assembled an outstanding legal team headed by former U.S. Solicitor General Theodore B. Olson. One of the country’s leading constitutional experts, Mr. Olson has won an astounding 75% of the cases he has argued before the U.S. Supreme Court.

As your trusted insurance partner, ISMIE is proud to share the financial benefits of an improving medical liability climate with our 13,000 policyholders. We also promise to do everything in our power to retain the cap on non-economic damage awards. For the latest developments on all these issues, be on the lookout for ISMIE-news, as well as updates on the ISMIE Web site.