PLICO’S MED MAL RATE HIKE:

Oklahoma Insurance Commissioner Carroll Fisher cut the rate increase requested by Physicians Liability Insurance Co. (PLICO) for its medical malpractice policies, but the company still received the okay to potentially raise its rates by 68.5 percent over a span of three years. According to the Oklahoma Insurance Department, PLICO had requested an 82.8 percent increase in medical malpractice insurance rates following several years of multi-million dollar losses in the line. In an announcement, Fisher said reviews of the filing showed that the increase is necessary for the long-term stability of the company. However, testimony at the hearing and a series of letters sent by doctors around the state indicated the large change would be difficult to absorb. Fisher complimented the company and its management for working to make malpractice insurance available at the lowest possible price, and acknowledged that claims have out-stripped the company’s premiums. Under the Fisher plan, PLICO’s rates would increase 39.5 percent the first year, 15 percent the second year and 14 percent the third. The second and third year increases could be adjusted when new information becomes available, Fisher noted. For example, jury awards and settlements could continue to escalate, which may necessitate greater increases in the second and third years. However, tort reforms passed by the legislature could lower costs allowing the future increases to be reduced, Fisher said.

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