Why is a Reciprocal the Best Choice for my Medical Professional Liability Insurance Needs?
In short, because you own the company! As a policyholder-owner you have direct input, through the Attorney-in-Fact and Board of Governors, into the management and operation of the reciprocal and you share in any profits that are realized. In a stock insurance company management loyalty is to the shareholders, not the policyholders. This can lead to operational, underwriting and investment decisions that are not always in the best interests of policyholders. Because reciprocals are not profit-oriented, they write insurance at cost and base premiums on projected losses, as recommended by independent actuaries. Any premium collected but not used to pay claims or reinforce the Company’s financial position is returned to the policyholders in the form of dividends. Period.
