MLMIC has great news for physician policyholders. Actually, we have three pieces of great news related to rates, dividends and discounts, and each will provide some financial relief in this difficult environment. Here are the details:
No rate increase
For the second consecutive year, there will be no rate increase for physician policyholders July 1. The Superintendent of Insurance has accepted MLMIC’s recommendation that the rates remain unchanged for all physician policyholders for July 1, 2016 – July 1, 2017.
20% dividend credited
The 2016 dividend appears on current physician invoices. As you know, this year MLMIC declared a 20% dividend for policyholders who were insured on May 1, 2016, and maintained continuous coverage through July 1. The 20% dividend is based on the standard annual rate of premium in effect on May 1, 2016, and is reflected as a credit on your invoice. This dividend is the largest we have declared in our history, and it will hopefully provide meaningful relief to our policyholders. Since inception, we have paid over $400 million in dividends to our policyholders, a feat unmatched by competitors operating in New York State.
Additional claims-free discounts
We are also very pleased to announce the approval of a 12% discount for qualified physicians that have been claims free for ten years. This is an expansion of our 7.5% claims free discount program that was introduced in 2011. Therefore, a policyholder may now qualify for either a 7.5% or a 12% claims free discount as follows:
- 7.5% to qualified physicians and surgeons who (1) have been continuously in practice for a minimum of five years and (2) have no open claims (or suits) and no closed claims (or suits) with indemnity or expense within the past five years (regardless of the accident date or report date).
- 12% to qualified physicians and surgeons who (1) have been continuously in practice for a minimum of 10 years and (2) have no open claims (or suits) and no closed claims (or suits) with indemnity or expense within the past 10 years (regardless of the accident date or report date).
In order to see if the discount has been applied to your premium, please refer to the “Premium Summary” included in your renewal policy. If you are receiving the discount, a “Claims Free Discount” line item will appear as part of your premium calculation.
If you have any questions about your coverage, premium or discounts, please contact your underwriter or contact us online.