NORCAL Mutual has been approved by the California Department of Insurance for an overall 7.07 percent rate decrease in Medical Malpractice Insurance rates, we would like to elaborate on a few points for you.

• The full implementation of the new Med Mal rates will be completed by July 1, 2012. The new malpractice rates apply to all new and renewed policies effective January 1, 2012 and later. All adjustments will be made by July 1, 2012.

Two other changes were made as part of the rate filing:

• The entity premium increased from 11 percent to 12 percent, and
• The claims-made step progression has been changed from six years to five years to achieve policy maturity

Please note that the changes in the entity rate and the adjustment in the claims-made malpractice insurance step process will become effective for new and renewal business on July 1, 2012 or later, and will not be applied retroactively. Either of these two changes may, in some cases, increase an account’s overall premium or offset what otherwise might be a premium reduction.

For those clients eligible for NORCAL Mutual’s 5 % risk management discount (solos and 2–4 groups), the rate filing may mean additional savings. If the client is an active member of one of NORCAL Mutual’s endorsing medical societies, they can receive an additional 2% discount by completing a minimum of three NORCAL Mutual CME credits. We have worked with the county medical societies to obtain their membership lists, to ensure that those eligible medical malpractice policyholders who earned three or more CME hours in 2011, will receive the new 7% discount beginning January 1, 2012.

Also, as a reminder, we have waived the age requirement for the med mal retirement tail waiver rule. All other provisions remain unchanged. Nothing in this blog changes or alters coverage terms, always check your policy and call your insurer as to any questions.

HCP National is a national medical malpractice broker appointed by Norcal.