SMCMA-NORCAL Partnership

                                   By Sue U. Malone, Executive Director




Sue U. Malone

In the fall, when most medmal insurance premiums are sent out, members often seek a recommendation on whether to continue with or change the medical liability insurer that currently covers their exposure. As you know, San Mateo County Medical Association endorses NORCAL Mutual Insurance Company as the insurer of choice for our members. This past year our Board received an update from NORCAL, and we are fortunate in that there will be no rate increase in San Mateo County for 2005. We continue to believe that NORCAL has earned its reputation as California’s leading medical liability insurer by delivering the best value and protection for physicians’ premium dollars.

Unlike physicians in other states, California physicians still have a choice of several professional liability carriers to choose from. However, doctors need to be cautious in selecting a medical liability partner. You may find insurers or brokers selling policies at seemingly low rates, but you must take care because often key coverages can be omitted or insufficient limits of liability are offered, which could result in gaps in your coverage and compromise your defense.

SMCMA and NORCAL have worked together for more than 25 years to provide value and service to you. One of the most important values NORCAL brings to policyholders is its willingness to “go to the mat” to defend its policyholders against nonmeritorious claims. No other company offers the depth of defense offered by NORCAL. Other carriers might urge quick and easy settlements to avoid spending undue amounts on defense, or the fine print of their insurance policies may even force doctors to settle claims. NORCAL grants you the right to consent to settle, and arbitration of malpractice claims is never forced.

You may not be aware that claims are reviewed confidentially by the SMCMA’s Medical Review & Advisory Committee (MRAC), which is composed of local physicians, defense counsel, and NORCAL claims staff. Your peers evaluate your care on the basis of the community standard in San Mateo County. Although all companies must utilize underwriting standards to determine whether a policyholder is an “acceptable risk,” NORCAL is not a company that automatically abandons a physician because of a single claim.

Another important consideration for physicians is that NORCAL is a mutual company owned by its policyholders. Unlike commercial insurance companies, NORCAL is not in business to make money for stockholders looking for investment returns. Nor is it one of the Alternative Risk Programs—such as risk retention groups, risk purchasing groups, captives, etc. NORCAL exists to provide protection and service while maintaining the utmost financial stability for the benefit of its members.

In fact, NORCAL is currently one of only two medical malpractice carriers in California with an “A” rating from A.M. Best. You may not think this is important, but with many companies—like Farmer’s, CNA, and Northwest Physicians Mutual—exiting the California market, knowing that your insurer is in good shape and committed for the long haul couldn’t be more important.

If you have any questions or if I can be of assistance to you, I urge you to contact me directly. I sit on NORCAL’s Board Advisory Council (BAC) and am in regular contact with key staff in the organization.

The BAC is made up of medical association executives who provide advice and counsel to NORCAL’s executive staff and Board on issues that affect our members. If you have any issues or just want to pass on your feedback—either good or bad—I can always “run interference” on your behalf.  You may also contact NORCAL directly at 1-800-652-1051.