Year Two of Policyholder Dividends Announced
One year ago, ISMIE Mutual Chairman Harold L. Jensen, MD, announced the first installment of a four-year dividend program, noting with cautious optimism, “If positive trends persist, the dividends will continue and may even grow.”
Positive trends have indeed persisted – to the tune of newly announced policyholder dividends totaling $11.5 million. The dividends will appear as credits on eligible policyholders’ premium renewal invoices for the 2008-2009 policy year, beginning July 1, 2008.
The credit, derived from ISMIE’s positive financial experience in the 2005-2006 and 2006-2007 policy years, will be shared with policyholders who have been continuously insured by ISMIE since those policy years.
In an April 9 news release, Dr. Jensen explained: “Illinois’ improving legal landscape made these dividends possible. ISMIE’s claim frequency is down for the two policy years the dividends reflect, so those funds are now available to return to our loyal physician policyholders. We are elated to be giving this money back; it’s emblematic of our physician advocacy mission.”
Key to ISMIE’s improved financial performance over the last two policy years is the
state’s 2005 medical lawsuit reforms, according to Dr. Jensen. “The reforms are working here, just as they’ve been proven effective in a host of other states,” he said.
Dr. Jensen also reinforced that upholding the reform law, currently under a constitutional challenge led by the trial bar, is an important factor toward continued stability for ISMIE, future possible dividends for physician policyholders and access to medical care for patients.
Range of typical credits • $574 for a family physician in Sangamon County |
New date for annual rate announcement
ISMIE’s annual rate announcement and effective date are permanently changed to October 1. The new date is necessary
due to an increasingly complex ratemaking process requiring more time for accurate, expert analysis. Since ISMIE’s inception
in 1976, geographic territories have grown from two to eight, and medical specialty categories have jumped to 22 from only seven. The date change will help assure the fairest possible rates for policyholders while continuing the highest level of physician-first service.
ISMIE insureds whose policy renewals fall on or after July 1 and through Sept. 30, 2008, will see no change in the current rates governing their premium payments. Any new rates would take effect Oct. 1, 2008, for application to all policies renewing on or after that date.
Questions? Contact Underwriting at 1-800-782-4767 ext. 3350, or uwtg@ismie.com.