PLICO TO RAISE RATES IN OKLAHOMA:

Physicians Liability Insurance Corporation (PLICO), a nonprofit insurer that provides liability coverage to Oklahoma doctors plans to increase its rates this summer, but said it won’t raise premiums again until 2007. According to the Associated Press, PLICO wants to increase rates by 45 percent to 55 percent by the end of this year, but would not increase rates in 2005 or 2006. Both PLICO and Hospital Causality Co., which together account for nearly 72 percent of the premiums written in Oklahoma for medical malpractice insurance, were put under the supervision of the Oklahoma Insurance Commission on March 31 because of financial difficulties. The move came after months of on-site monitoring by the department. In the last two years, PLICO reportedly has lost $12 million. Oklahoma Insurance Commis-sioner Carroll Fisher said both companies are paying current bills, but that the supervision was needed for the long-term survival of the companies. He added that he expects the companies to be fully rehabilitated. The insurance department approved a new medical malpractice insurance rate plan that will take effect July 1. The new plan is for a term of 30 months and guarantees rates in effect at the end of 2004, according to Gordon Amini, senior vice president of PLICO’s administrator, CL Frates and Co. The company had sought to raise doctors’ insurance rates by 82.8 percent. Fisher agreed to a 39.5 percent increase with the remaining rate hikes being spread out over the next two years. The new plan moves up the scheduled increases to the end of 2004 and then fixes premiums for 24 months.

Topics Oklahoma