A new doctor-owned malpractice carrier in Kentucky, which begins operations today, says its doctors will decide premium levels and the company will fight against frivolous lawsuits.
Healthcare Underwriters Group of Kentucky, based in Louisville, is licensed to operate as a reciprocal malpractice insurance company, meaning that its members have shares in the company, according to the Kentucky Department of Insurance Web site.
But policyholders will not be assessed to pay for losses if HUGKY's losses are greater than anticipated, because it has secured reinsurance for extraordinary losses, the company says in a release today.
"A hallmark of HUGKY will be an aggressive approach to defending claims," the release says. "The company management team is intent on employing an aggressive defense strategy and intolerance of nuisance claims."
The company adds that doctors on its Subscribers Advisory Committee will review actuarial data and make recommendations for establishing annual premiums, and physicians will also be involved in the development of underwriting and claims-handling policies.
"We believe this new option will help address growing concerns about the affordability and accessibility of coverage in this difficult line of insurance," says acting Insurance Commissioner Glenn Jennings in the HUGKY release. "We are optimistic that this addition to the market will provide some needed relief to physicians."