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Risk Retention Group to Provide Malpractice Insurance to Florida Nurses
Florida Nurses Association Endorses New Insurer
ORLANDO, FL -- (MARKET WIRE) -- March 20, 2007 -- Sophia Palmer Nurses Risk Retention Group, Inc.
will offer malpractice insurance to Florida nurses in partnership with the
Florida Nurses Association (FNA), Barbara Lumpkin, RN, FNA Associate
Executive Director, and Kathi Cavallo, RN, CLC, President, Uni-Ter Risk
Management Services, announced.
The newly formed Risk Retention Group (RRG) was capitalized by Ponce de
Leon LTC RRG, Inc., a major provider of professional liability insurance to
long-term care facilities in Florida. The Uni-Ter Group of Atlanta, GA, a
subsidiary of New York-based U.S. RE Companies, an international financial
services and reinsurance brokerage firm, will manage Sophia Palmer.
Named after Sophia Palmer, a founding member of the American Nurses
Association, the RRG will be owned by nurses who become shareholders in the
Company. It was formed to meet the nursing profession's urgent need for
affordable, reliable malpractice insurance. The Nurse's Service
Organization reported in 2005 that Florida had the highest number of
malpractice claims in the nation against nurses.
"Because of increased claims activity for Nurse Practitioners and
Physician's Assistants, many insurance carriers have pulled out of Florida,
and all have gone from offering an Occurrence Policy to a Claims Made
Policy," Cavallo said.
Sophia Palmer will offer limits of $100,000 per event up to $250,000
aggregate for a policy year, or $250,000/$750,000. Members of the Florida
Nurses Association will receive a 10 percent discount. "Sophia Palmer will
offer competitive rates because it has no history of large claims over
several years. In fact, the rate for an Occurrence policy for a Nurse
Practitioner is similar to or less than the current rate for a less
desirable Claims Made policy offered by other carriers in the State,"
according to Cavallo.
In order to be insured by Sophia Palmer, nurses must buy stock in the
Company. Advanced Practice Nurses and Physicians Assistants will pay 40
percent of their first year's premium, payable over three years, to become
shareholders. All other categories of nurses will buy two shares of stock
at $25 per share.
"The FNA Board and staff are very pleased with the products and options
offered to RNs and Nurse Practitioners. We are truly excited because Sophia
Palmer will offer both a Claims Made Policy and an Occurrence Policy,"
Lumpkin said. "As a general rule, Occurrence Policies are preferred because
the policy will pay on an incident that occurs anytime during the life of
the policy, while a Claims Made Policy pays only if the claim is made while
the policy is in effect. Claims can often be made a few years after the
incident," Lumpkin added.
Ponce de Leon LTC RRG, Inc. was formed four years ago to provide a market
for long-term care facilities that are required to have general and
professional liability insurance but could not obtain the coverage from
traditional insurers who were withdrawing from this line of business or
pricing the product out of reach of most operators. Today, Ponce de Leon is
a market leader in Florida with more than 700 facilities insured.
Ed Taylor, Board Chairman of Ponce de Leon, said, "Our Board is pleased to
provide a Surplus Note to help launch Sophia Palmer because our facilities
face a looming shortage of qualified nurses to maintain our high standards
of care if they cannot obtain affordable liability insurance protection."
Sanford Elsass, President/CEO of The Uni-Ter Group, which manages Sophia
Palmer and Ponce de Leon, said, "We believe the combined effect of
providing stable, affordable liability and malpractice insurance to
long-term care facilities and our important Directors of Nursing will
assure high standards of care. Plus, our risk management services and
aggressive claims management will reduce losses and cause trial lawyers to
look elsewhere for deep pockets."
Sophia Palmer offers malpractice insurance to: Medical Assistants,
Certified Nursing Assistants, Licensed Practical Nurses, Registered Nurses,
Advanced Practice Registered Nurses, Nurse Practitioners, Nurse Midwives,
and Physicians' Assistants. In order to qualify, Nurse Practitioners and
Certified Nurse Midwives must be working under the general supervision of a
physician.
"Online continuing education sessions will be available for insureds at no
added cost. Several courses related to risk management will be included as
part of the insurance agreement between the Sophia Palmer RRG and the
insured," Cavallo pointed out.
For detailed information on how to join Sophia Palmer RRG, Inc., visit our
web site, www.spnrrg.com.
Media contact: Mechlin Moore, MDM Communications (239-777-1595 or
mmoore7412@aol.com)