Medical Liability Insurer MMIC Forms Risk Retention Group

Medical liability insurer MMIC Group, Inc. (MMIC) has formed a risk retention group – MMIC RRG, Inc. – to meet the evolving medical liability needs of physician groups, clinics or hospitals based in MMIC’s eight-state core territory that may employ professionals in other states.

MMIC currently offers the RRG option to accounts headquartered in the eight Midwestern states where it is currently licensed and actively writing new business: Minnesota, Iowa, Wisconsin, North Dakota, South Dakota, Nebraska, Kansas and Missouri.

“A clinic or physician group insured by MMIC that is based in one of those states may, for example, employ radiologists or laboratory professionals in another state,” explained Gerald O’Connell, vice president, Alternative Risk Transfer Solutions, MMIC. “If we are not licensed in the other state, the RRG option can include the professionals under their employer’s coverage program.

In addition to its eight core states, MMIC is licensed and admitted to do business in six other states. The RRG enables the company to underwrite business in states where it is not licensed and admitted, subject to a registration to do business in those states.

O’Connell said MMIC is in the process of registering the RRG in several states, and will do so in the future based on policyholder needs. “This is intended to provide us and our policyholders with flexibility in certain specific cases,” O’Connell said. “If we intend to seriously expand in a state outside of our current territory, we will become licensed and admitted in that state.”

Risks insured under an RRG are considered “non-admitted” and are not governed by state guaranty funds.

Source: MMIC