Agents and Brokers

Q: Does the Association accept submissions from agents and brokers?
	The Association will accept new business applications submitted by any licensed agents and brokers. As an involuntary market, the Association does not appoint agents.

Q. What is the term of the Association coverage period?
	The Association writes its coverage in annual policy periods.

Q. What information does the Association require in order to issue a coverage quote?
	The underwriting process at the Association begins with the applicant submitting a fully-completed and signed Association Application (which can be downloaded from this website). The Association also requires a listing of all insurance carriers for the prior 10 years and carrier produced loss runs for the same period. Once this information is provided and evaluated, the Association will offer a coverage quote to all eligible health care providers.

Q. Does the Association offer installment payment options?
	Some insureds are eligible for installments. See Premium Payment and Service Fees. For all other insureds, the Association requires payment in full of the quoted total amount required to bind in order for coverage to become effective. This amount must be received by the Association on or before the requested effective date.

Q. Can my client finance his premium payments?
	The Association accepts premium financing agreements and will honor cancellations sent by the financing company that has power of attorney.

Q. Does the Association pay commissions?
	If the insured elects to submit an application through a licensed agent or broker representing the insured, the Association will allow a handling fee equal to: a. 5% of the premium not to exceed $10,000 for each policy issued to Hospital or Nursing Home health care providers; or b. 5% of the premium not to exceed $1,000 for each policy issued to all other health care providers.

Q. At what point is the handling fee paid?
	This fee is remitted to the licensed agent or broker at the end of the month after policy has been issued.

Q. My client only needs coverage for 3 months time. Can they obtain a short-term policy with the Association?
	No, the Association writes its coverage for annual periods, only. The only exception is a health care provider requiring coverage for a specific assignment involving a period of time less than 1 year. If the assignment changes and the coverage needs to be extended, the policy will be extended to a 1-year period.

Q. What is the Association's cancellation policy?
	For non-institutional policies the return for Association premiums are computed at 95% of the pro-rated unearned premium subject to retained minimum premium. Institutional policies are computed based on the actual units of exposure which must be submitted by the insured to compute the cancellation return. There are no flat or retroactive cancellations.Cancellations are processed with a cancellation date equal to the date notice is received in our office.

Q. Can I get a manual and rate up my own policies?
	Copies of the Association manual are available on our website. However, there many factors affecting an insured's premium so you cannot quote rate up coverages for the Association.