Medical Malpractice Risk Retention Group Launched in New York
First New Capacity for NY Med Mal in Recent Years
NEW YORK, NY -- (MARKET WIRE) -- February 7, 2007 -- J. M. Woodworth Risk Retention Group (RRG) has
registered with the New York Insurance Department to offer medical
malpractice insurance to physicians and surgeons in the State, Sanford D.
Elsass, President and CEO of The Uni-Ter Group, announced. Uni-Ter manages
the Company under contract to the Board of Directors, which is composed of
prominent physicians along with business and academic leaders.
"The RRG provides New York doctors the first new capacity for medical
malpractice insurance in many years," Elsass said. "The profession has been
facing a medical malpractice insurance crisis. Rates have escalated to the
point physicians and surgeons are retiring or leaving the State. Young
doctors are choosing not to practice in New York. The State Fund and the
few remaining insurance carriers are in financial distress."
The RRG was formed in partnership with Paris-Kirwan Associates, Inc.,
Rochester, NY, a leading provider of insurance to the healthcare industry.
J.M. Woodworth works exclusively through independent insurance agents with
Paris-Kirwan acting as wholesale broker.
"The medical malpractice insurance crisis is a serious threat to the
availability of healthcare in New York," said Louis (Skip) Pleninger, Vice
President-Medical Insurance Division, Paris-Kirwan. "I'm pleased to join
with Sandy Elsass and his team who have proved that Risk Retention Groups
can provide competitive, reliable liability insurance where the traditional
carriers have failed. At last, our New York doctors have a viable
alternative to the State Fund and traditional insurers."
J. M. Woodworth RRG, Inc. will provide medical malpractice insurance to
doctors who become shareholders in the Company. As part of its contract,
The Uni-Ter Group provides professional risk management services to help
physicians and surgeons insured by the RRG avoid claims. The Company is
domiciled in Nevada and registered with the New York Insurance Department
to do business in the State. It was organized under the Federal Liability
Risk Retention Act of 1981, amended in 1986, which allows RRGs licensed in
one state to do business in other states without additional licenses.
J. M. Woodworth was launched recently with a Surplus Note provided by
Oneida Savings Bank, Oneida, NY, and capital contributed by subscribing
doctors as founding shareholders. Medical Malpractice insurance policies
written by the RRG will be on a "paid claims form" under which liability
for the indemnity shifts to the insurers when the claim is paid rather than
at the time of occurrence. This allows premiums to be set on the basis of
actual costs when incidents are incurred instead of reserved estimates. The
Company offers limits of $1 million/$3 million, up to and including $2
Speaking for Uni-Ter, Elsass said, "We will provide J. M. Woodworth with
professional risk management services to help prevent claims and retain
top-rated lawyers to defend physicians and surgeons when claims occur. This
is a crucial part of our mission. Requiring members to work with our
professional risk managers and providing aggressive defense against unfair
claims have been keys to our success in nursing home liability insurance.
We apply these same principles at J. M. Woodworth," Elsass explained.
Membership in J. M. Woodworth RRG, Inc. is:
-- Open to qualified physicians and surgeons in New York
-- Stock purchase required (can be amortized over four years)
-- Member shareholders must accept risk management and claims protocols
-- More details available from Skip Pleninger at Paris-Kirwan Associates,
Inc. (585-461-6427 email@example.com); and Nadeene Wood-Clater at The
Uni-Ter Group (678-781-2435 firstname.lastname@example.org).