WHY ARE ASSOCIATION RATES GENERALLY HIGHER THAN OTHERS?
The Association serves as a supplement to the existing voluntary insurance market. It is not a substitute or competitor. The Association cannot refuse to insure any eligible applicant. Previous loss experience, more hazardous types of medical practice, or higher risk patients or procedures, for example, cannot be used as factors to reject an application. The competitive insurance market can, and often does, restrict coverage to the less hazardous risks thus making available lower rates. In addition, occurrence policy premiums are initially higher than claims made policy premiums, particularly in the first four years of the claims made policies.
Related Questions
- When I received my Annual Dues Billing, I noticed that the fees have gone up. Can my Association increase the rates without notifying the members in advance?
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