Re:     New Carrier Partner for Bariatric Surgeon MPL (PhysicianProtect™| BARIATRIC) Clients

Dear Dr. %%$last%%,

Two years ago, we launched a specialized insurance program for bariatric surgeons. This program provides a unique combination of insurance and risk management designed for the risks facing bariatric surgeons. Recently, we announced a new risk management partner, OmniSure, who provides state-of-the art risk management services to each of the bariatric clients.

Today, I am very pleased to announce that Markel (e.g., Evanston Insurance Company) will be the insurer partner for the PhysicianProtect™| BARIATRIC program effective December 1.

Part of our responsibility as an insurance program administrator is to provide the best possible product and service. Markel has 30 years of healthcare liability claims defense experience. They understand physicians & surgeons and have top defense panel in place nationally. Their brand and financial strength is without question.

We are committed to you and your bariatric clients and believe we are offering the industry’s best combination of insurance and risk management designed specifically for bariatric surgeons. The PhysicianProtect™| BARIATRIC program will now be available in most states nationally.

I will call you shortly with more information and look forward to answering any questions you have.

Respectfully,

Jeffrey D. Brunken
CPCU, GBDS, RPLU
President


The following FAQ addresses some of the questions you may have regarding this announcement.

FAQ

Markel Announced as New Insurance Partner for PhysicianProtect | BARIATRIC

Is there any change in pricing?
No. The same rating rules apply going forward. There are some new optional coverages now available which cost additional if selected. For example, clients will be able to select higher cyber liability limits which will have an additional cost.

What is different about the new risk management program?
We understand the importance and value of providing bariatric-specific risk management services. OmniSure is our new risk management partner and their bariatric team is led by Amanda Budek, PhD, who has decades of bariatric surgical experience. Each client receives an upfront assessment from Amanda, patient satisfaction scoring, a 24/7 risk management hotline, and other important risk management tools, such as procedure-specific informed consent documents. In short, everything the bariatric clients have received in the past will continue, but is now expanded even more and focused on personalization for each practice.

Why did MGIS find a replacement insurer for bariatrics?
As a program administrator, we need to review our vendors and insurer partners from time to time. It is part of our responsibility to our clients and distribution partners. Markel comes to us with over 30 years of healthcare liability underwriting and claims defense experience. Their brand within the healthcare liability sector we believe is a better fit for the specialized approach we want to take with the bariatric clients in the future.

What happens with claims my client reported with the prior carrier?
Claims reported to Nationwide during their coverage period will continue to be covered by Nationwide. We will continue to work with Nationwide to monitor the ongoing claims status.

How does this impact client billing and other service matters?
There is no change at all for current clients. As the program administrator, MGIS provides a seamless service transition between carriers and risk management resources.

Is there any change in surplus lines administration?
As with the prior insurer, all bariatric policies with Markel will be placed on a non-admitted basis. We have the option of administering the SL taxes, fees, and forms or delegating the SL responsibilities to the producing broker. We merely need to know at time of quoting which option the broker prefers. If the broker prefers to retain SL responsibility, we will need a copy of the broker’s SL license and retain an affidavit of broker responsibility.

What new coverage features are available?
This program will feature a claims-made (and reported) policy with clear incident trigger, world-wide coverage (suits brought in the US), consent to settle, and other standard provisions. New features will include a courtesy defense endorsement, full regulatory coverage, and cyber liability (1st and 3rd party) with optional limits up to $1mm. Note, these coverages are not outsourced—they are all Markel coverages.

What are my next steps?
At renewal, we will send you a quote for coverage with Markel. Or, if you would like us to consider a mid-term transition, we can accommodate on a pro-rata basis. We look forward to working with you on either basis. Let us know what is best for you and the client. For new clients, here’s a link to our bariatric MPL application.