Fort Lauderdale-based Healthcare Underwriters Group, a physician-owned medical malpractice insurance company, received its license today from the Office of Insurance Regulation. The formation of Healthcare Underwriters Group of Florida is a bold step toward addressing the state's med mal crisis

Healthcare Underwriters Group of Florida(HUGFL), a medical liability insurance company owned and governed by Florida doctors, has received authorization from the Florida Office of Insurance Regulation (FOIR) to begin issuing policies to doctors.

The license to operate, also called a Certificate of Authority, was granted by Florida's Director of the Office of Insurance Regulation, Kevin M. McCarty, late yesterday. HUGFL's licensure comes at a time when many Florida doctors are struggling to find stable and affordable medical liability insurance.

"We've been working toward this day for over a year," said Steven L. Salman, HUGFL's CEO. "It's very exciting to see doctors seize control of their future and work toward the permanent stabilization of Florida's medical liability insurance market."

HUGFL is the only insurance company in the state that offers Florida doctors ownership,governance, and representation as a voting member. A grassroots movement to create HUGFL began over a year ago.

"HUGFL was modeled after the nation's most successful doctor-owned companies," said Dr. Stephen Shapiro, Chairperson of the Board for HUGFL.

"We made sure the company's sole product line was physician medical liability insurance, and that our risk pool includes only well-qualified
Florida doctors."

Dr. Shapiro, who practices in the Palm Beach Gardens area, is one of eight of the company's initial board members. Other board members include Scot Ackerman, M.D. (Jacksonville), Kenneth C. Andronico, D.O. (Wesley Chapel),Siva P. Bellam, M.D. (Port St. Lucie), Mario S. Cuervo, M.D. (Miami), Edward J. Feller, M.D. (Miami), Alicia Rodriguez-Jorge, M.D. (Miami), and Steven L. Salman, J.D. (Ft. Lauderdale). Additional physician board members are expected to be added during 2004.

The HUGFL Insurance model:
HUGFL is an insurance reciprocal. A reciprocal is similar to a mutual insurance company because it is owned by its insureds---in this case, Florida doctors.

The new company is non-profit and does not carry a premium load for profit. Additionally, HUGFL will operate as a non-assessable reciprocal, meaning that policyholders cannot be "assessed" to pay for losses if HUGFL's losses are greater than anticipated. HUGFL has secured high-quality reinsurance for extraordinary losses.

If, on the other hand, losses are less than anticipated, HUGFL's policyholder-owners may receive either a dividend payment or a reduction in future premiums. Dividend payments and premium reductions are both subject to approval by the Florida Office of Insurance Regulation.

A hallmark of HUGFL will be an aggressive approach to defending claims. The company's management team is experienced and focused on employing an aggressive defense strategy and intolerance of nuisance claims.

Through ownership in HUGFL, Florida doctors have a strong and unified voice on issues of medical liability. For example, a Subscribers Advisory Committee (physician board of directors) will review actuarial data and make recommendations for establishing annual premiums. Florida doctors will also be involved in setting underwriting and claims-handling policies.

HUGFL is licensed and regulated by the Florida Office of Insurance Regulation.