Underwriting

FAQ's

1. I'm interested in applying for coverage with Medical Mutual. How do I get an application?
   All of our professional liability applications are available online.
2. What are loss runs?
   Loss runs are documents from your current and past professional liability carrier(s) verifying claims, suits or reported incidents.
3. How do we add a new physician or mid-level provider to our policy?
   A completed application and all pertinent documentation must be sent to your underwriter or agent for review. You may obtain the application from our website.
4. How do I find out who my underwriting representative is? How can I contact them directly?
   Underwriters are assigned by state, county, as well as by networks. A listing of underwriters by territory is available on our website.
5. Is my policy Claims-made or Occurrence?
   All of our policies are claims-made.
6. Why did my premium go up so much (when stepping up in claims-made years)?
   A claims-made insured goes through a 5-year maturation process. A first year claims-made policy is at a lower rate because the chance of claims occurring and being reported during the first year are low. However, the longer you have been insured, the greater the chances of a claim occurring and being reported. Because of this, your premium will increase for 5 years until it has reached a mature rate.
7. Are all of our ancillary employees automatically covered?
   No. Nurse practitioners, physician assistants, nurse anesthetists, nurse midwives, psychotherapists, licensed clinical social workers, podiatrists, chiropractors and dentists are not provided any automatic coverage under our policy. They must be named on the declarations page and pay a separate premium. In order to be named on the policy, ancillary providers must complete a non-physician application, which can be found on our website.
8. Can independent contractors be added to our policy?
   Yes, if they meet our underwriting guidelines and as long as they are being contracted by you for work on your behalf. We will exclude all work outside your practice.
9. When do we need to request vicarious liability (VL)? Is an application required?
   Vicarious Liability coverage is needed when an employee, agent or someone else is acting on your behalf and is not listed on your policy as an insured. An application must be completed by this individual for underwriting approval. Once approved, a vicarious liability endorsement may be added to your policy, with a premium charge required.
10. Will my premium go down if I drop my hospital privileges and use hospitalists?
    Your premium will not decrease under that scenario. Your classification and rating is based on your specialty and the types of procedures performed.
11. Can I moonlight or volunteer and be covered under my group's policy ?
    It is possible to get coverage in some instances. You will need to seek approval from your practice, because they are the named insured, and you will need to notify your underwriter for final approval.
12. How do we remove a physician or mid-level provider from our policy?
    A letter from the practice stating the provider's last work day, along with his/her forwarding address, must be sent to the appropriate underwriter.
13. How will I know if someone has been deleted from my policy as requested?
    Both you and the deleted individual will receive a certified letter confirming the cancellation date and and also advising about the Extended Reporting Endorsement (ERE)/Tail Coverage option.
14. What is a locum tenens?
    A locum tenens physician is a physician who agrees to take over another physician's practice while that physician is away from his office. MMIC will provide free coverage for qualified, underwritten physicians who agree to substitute from time to time for an insured physician due to illness, vacation or for the purpose of receiving additional training. We allow 30 days of locum tenens per policy period. The Locum Tenens Application can be found on our website.
15. Does my Medical Mutual policy cover me if I become a Medical Director?
    No. These services are generally administrative in nature. Our policy specifically excludes this. However, any "professional services" rendered to your own patient at a location where you are medical director would be covered. If you are providing services as a medical director, you should seek coverage for your administrative services from the entity for whom you are providing these services.
16. How do I obtain loss runs from Medical Mutual for credentialing?
    You will need to submit a signed, written request to our Claims Department.
17. When will I earn a free extended reporting endorsement (ERE), or a free tail?
    You qualify for free ERE or free tail coverage upon permanent disability, death, or retirement from the practice of medicine, if you are 55 years of age or older and have been with the Company continuously for at least five years, or been with the Company for at least ten consecutive years immediately preceding retirement.
18. I have to cancel my policy and I am not retiring, what do I need to do to get a quote for my tail coverage or ERE?
    You will need to contact your underwriter with a proposed cancellation date to receive an ERE quote.
19. What is the cost of an ERE?
    The cost of the ERE is usually 2 ½ to 3 times the annual premium of the individual at the time of cancellation.
20. Do ancillary employees need to purchase an ERE?
    Only those ancillary employees with individual limits of liability need to purchase an extended reporting endorsement.
21. Who is responsible for paying my ERE?
    The insured individual is normally the one responsible for payment of the ERE after cancellation of the policy. We recommend that the responsibility of the ERE payment be negotiated when an employee is first hired and included in the employment contract between the employee and employer.
22. What are my options for paying for the ERE?
    The extended reporting endorsement can be paid in one lump sum or on our installment plan, which requires a 50% down payment within 30 days of cancellation, 30% due on or by the 1st year anniversary date of cancellation, and the remaining 20% due on or by the 2nd year anniversary of the cancellation date.
23. What happens if the individual provider and the corporation are sued and the individual did not purchase ERE?
    The corporation can be sued for the acts or omissions of an employee even if the employee does not purchase tail, provided that the employee was working on behalf of the corporation at the time of the incident. If the corporation has applicable coverage under an active policy, or under an applicable extended reporting endorsement, there will be coverage for the corporation if it is sued for acts or omissions of that employee. The individual will have no coverage if the ERE has not been purchased.
24. Do physicians on a FTE slot need to purchase an ERE?
    No. An individual ERE is not necessary for physicians covered under an FTE slot. They will continue to have coverage in the future for any incidents that may have occurred during the time they were insured under the policy, as long as the slot remains active, or, if cancelled, an extended reporting endorsement (ERE or tail coverage) was purchased for the slot.
25. Is MED-DEFENSE coverage included in my ERE?
    No. MED-DEFENSE is no longer available after cancellation of the policy, even if an ERE is purchased. This coverage only responds when the "Insured Event" (the need for the defense) is instituted during the active policy coverage period.
26. I am retired and have a Retired Volunteer policy, can I do locum tenens work and be covered under this policy?
    Retirement is defined by the North Carolina Medical Board as the complete and permanent withdrawal from the practice of medicine. Our Retired Volunteer policy does not cover any practice for remuneration.
27. If I retire with Medical Mutual, receive a free ERE and decide to return to practice at a later date, how will Medical Mutual handle my coverage?
    You will be subject to the underwriting guidelines at the time of your planned re-entry to medicine. If approved for coverage, your ERE will be cancelled and we will issue your new coverage with the old retroactive date you had prior to retirement. We will also exclude coverage for the time period you were retired. Later, when you decide to completely and permanently withdraw from the practice of medicine, we will re-issue your free ERE.

    Our underwriting for physicians re-entering the practice of medicine after retirement will be closely aligned with the NC Medical Board's position statement on this issue.