If you have commuted a malpractice insurance policy, notify the state by May 15
The ISMA directs your attention to a bulletin issued by the Indiana Department of Insurance (IDOI) for physicians and others who must submit proof of financial responsibility to the Patient’s Compensation Fund (PCF).
Any health care provider who has commuted a policy once used as proof of financial responsibility must notify the IDOI of the commutation by May 15. Failure to notify the state will result in forfeiture of PCF coverage for the policy commuted, unless written approval had previously been granted.
Visit here to read the entire bulletin.
If you have questions, contact Deputy Commissioner Tina Korty at (317) 232-2417 or e-mail her.
|What is commutation?
“…commutation means a discharge, substitution or transfer of an insurer’s obligations under an insurance policy/contract, often involving a return of some portion of the premium originally paid. Commutation in this sense can also be known as policy buy-back and does not include flat cancellations or mid-term cancellations, or policy recission due to fraud or other violations of the policy terms.”
Source: IDOI Bulletin 178