Medical liability insurer Texas Medical Liability Trust (TMLT) recently approved a 6.5 percent rate reduction for all medical specialties and classes effective Jan. 1, 2008, the third straight rate reduction/dividend for TMLT policyholders.
In addition, all current TMLT policyholders renewing their policies in 2008 will receive a dividend equal to 22 percent of their expiring premium, the company said. The total dividend declared is approximately $35 million. The dividend will be applied at policy renewal.
TMLT has reduced rates five consecutive years since the passage of House Bill 4 and Proposition 12 in 2003: 12 percent in 2004; 5 percent in 2005; 5 percent in 2006; 7.5 percent in 2007; and 6.5 percent in 2008.
The net effect of these cumulative rate reductions amounts to a 31 percent reduction from 2003 rates and approximately $200 million of premium savings.
By the end of 2008, renewing TMLT policyholders will have received dividends amounting to approximately $75 million.
Since the passage of Prop 12 and medical liability reform of 2003, TMLT policyholders will have realized cumulative savings of approximately $275 million from rate reductions and dividends.
Source: TMLT
Topics Carriers Texas New Markets
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