Re: Discontinuation of MPL Program with Nationwide
Over the past several months, MGIS and Nationwide have been evaluating current MPL market conditions. In a decision reached jointly with Nationwide, we will begin non-renewing all policies that are effective February 1, 2017 and beyond. We understand the impact this has on you and your clients insured through this program. To minimize disruption and allow for your planning, we have established the following activity timeline:
- Non-Renewal Letters for February 2017 policies will be sent out this week. After that, we will send monthly non-renewal batches for expirations seventy (70) days out or by state requirement, whichever is greater. As an example, March 2017 non-renewal letters will go out in December 2016, and so forth.
- Realizing the increased need for loss runs and the importance of delivering them quickly, our IT Department has built a quick-turnaround loss report especially for this event.
For those of you who have bariatric clients with within the PhysicianProtect™| BARIATRIC program, there is some exciting news. Markel Wholesale (“Markel”) will become the insurance partner for the program effective January 1. With Markel, we will have broad coverage, accurate pricing, specialized risk management, and experienced claims defense. The Markel healthcare specialized claims team is comprised primarily of attorneys turned insurance professionals with nearly 50 years of litigation experience. They understand physicians and surgeons and have a defense panel comprised of top firms in place nationally. Their brand, commitment to healthcare, and financial strength are without question.
While our excitement about the new PhysicianProtect™| BARIATRIC program is high, it is tempered by the impact we know the general non-renewal will have on our brokers and insureds. We look forward to working with you on a smooth transition as we move through the process with Nationwide.
Should you or any of your clients have questions or concerns, please call me or our underwriting team (see attached FAQ information).
The MGIS Companies, Inc.
Phone: 801-990-2400 x120
Why did MGIS and Nationwide decide to discontinue the general-MPL program?
The competitive MPL marketplace has made growing this MPL program difficult. In a joint decision with Nationwide, we concluded we could not grow the general MPL program sufficiently to absorb future expected loss levels, and decided to discontinue the program, but to do it in February instead of January to ease the process for our brokers.
When will non-renewals occur?
We will be non-renewing any policies renewing on or after February 1, 2017. Notices will meet state requirements. Each named insured under the policy will receive a notice, but bundled as a package, per the policy. The broker will receive a copy of any notice as it is sent to the insureds.
What will be the reason for nonrenewal on the notice?
We will send non-renewal notices that state the reason for non-renewal as “program did not meet financial objectives.” So these notices will clearly indicate the non-renewal did not result from the client risk.
Where do I request loss-runs for my client?
Please send a loss run request to email@example.com and note in the subject line – Broker Loss Run Request (please include policy number).
What happens with claims my client reported with Nationwide?
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. For as long as your policy remains with us, your billing and service contacts at MGIS will remain the same.
What are my next steps?
As your client renewal approaches, we will send the non-renewal notice per the timeline mentioned above. You will be copied on any notice(s) sent to your client. Or, if you would like to transition your client’s coverage mid-term, 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.