On behalf of Clark County physicians, Nevada Gov. Kenny Guinn announced that the state of Nevada has reached a $1 million settlement with The St. Paul insurance companies. The St. Paul withdrew from the medical malpractice insurance market in 2002.
Under the settlement reached, The St. Paul agreed to refund within 60 days, a portion of the premiums charged to certain Clark County physicians. Approximately $900,000 will be refunded to those physicians whose policies were renewed during the months of July and August of 2001.
In a separate action, The St. Paul has also agreed to pay an administrative assessment of $100,000 to the state’s General Fund account.
“I would like to commend Nevada Insurance Commissioner Alice A. Molasky-Arman for her effort, which alleviates a concern that I have shared with our doctors in Nevada,” Guinn said. “This settlement represents a fair compromise to an impasse, which could have potentially turned into a lengthy court battle without resulting in any monies being refunded to policyholders.
“The settlement will result in immediate refunds to Nevada’s physicians, which could not have been accomplished through a potentially lengthy and costly legal process.”
In a separate action related to a routine market conduct examination, St. Paul Fire and Marine Insurance Company agreed to pay, without admitting to the allegations or liability, a $75,000 administrative assessment, and St. Paul Medical Insurance Company agreed to pay a $25,000 administrative assessment. The agreements settle the initial complaint filed with the Commissioner in May 2002, and allegations from a Market Conduct Examination Report dated
December 18, 2001.
“I applaud The St. Paul for taking a positive step by demonstrating their willingness to work together and resolve these issues,” Molasky-Arman added.
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