New Dividend Plan, Stable Rates Greet New Policy Year

Through good times and bad, thousands of physician policyholders have remained loyal to ISMIE Mutual. Now it’s our turn to reward your partnership and trust with a new dividend plan and stable premium rates for the 2007-2008 policy year.

If you have been continuously insured with ISMIE since the July 1, 2005-June 30, 2006 policy year, you will receive a dividend when you renew your ISMIE coverage
beginning July 1, 2007. You do not need to apply for the dividend. It is automatic for all eligible policyholders.

Entire dividend appears as credit on your first renewal invoice

The first review of the 2005/2006 policy year results indicate that the amount paid as the dividend will total approximately $18.4 million to eligible policyholders and will be distributed in installments over four subsequent years. The $18.4 million could go up or down depending on subsequent reviews. The initial dividend installment of $5.5 million will be divided among eligible policyholders and will appear in its entirety as a credit on the first quarterly 2007-2008 policy year renewal invoice. The dividend will include clinic policies, but allied health professionals sharing limits of liability with their employer are not included.

“The news this year is very positive for ISMIE and our policyholder owners,” said ISMIE Chairman Harold L. Jensen, MD. “It’s a good start, and if positive trends persist, the dividends will continue and may even grow.”

Dividend amounts will reflect 2005-2006 premium rates you paid for the first $1 million in coverage, after an adjustment to account for individual policy features, such as full-time vs. part-time status, policy maturity, etc. As for how much in savings you are likely to see, individual practice circumstances will vary. Typical credits could range from $453 for an internist in the Metro East/St. Louis or Chicago metro area; $2,880 for a Chicago area neurosurgeon; $846 for a general surgeon in Springfield; or $905 for a general surgeon in Rockford.

More information on the new dividend plan in the form of “Frequently Asked Questions” can be found on ISMIE’s Web site at www.ismie.com.

No increase in overall rates

ISMIE is also working hard to keep the cost of your liability insurance as reasonable as possible. That makes our decision to extend current premium rates, unchanged, for the 2007-2008 policy year another burst of good news for policyholders. In fact, this is the third consecutive year that premium rates have not increased.

“We’re starting to see some signs that the legal environment is improving in Illinois, and that litigation reforms are beginning to work” explained Dr. Jensen. “We’re eager to share these gains with our loyal policyholders – to thank colleagues who have stuck with ISMIE through leaner times. But the battle is far from won. If the constitutional challenge mounted by the trial lawyers unravels the reform law, it will wipe out the progress we’ve made,” he added.

“We can’t grow complacent, because the medical liability crisis has not disappeared. ISMIE is doing everything in its power to fight the attempt by trial lawyers to undo our gains. We must remain vigilant.”

You can get updates on what the trial lawyers are up to in “They’re At It Again,” a regular feature in ISMIE-news, an electronic newsletter sent to policyholders by e-mail every Tuesday. If you’re not on our list of subscribers, send your e-mail address to e-news@ismie.com to receive the latest information on ISMIE and medical liability issues that impact your practice.