Princeton, NJ (PRWEB) October 10, 2009
New Jersey Physicians United Reciprocal Exchange (NJ PURE), New Jersey's only direct writer of medical malpractice insurance, today announced its support for the recent proposed rules by The New York Department of Insurance, to require agents and brokers to disclose their monetary interests to their clients.
The rules would allow physicians who purchase medical malpractice insurance to be more aware of the monetary interest of their agent or broker. This is increasingly important since many physicians are unaware of the commissions paid by certain insurers and how such arrangements might influence which insurers they recommend to physicians.
"For years physicians have relied upon and trusted the recommendations of their agent or broker in choosing insurance, not realizing that the agent or broker may be basing their recommendation on commission fees," said, Eric S. Poe, Esq., CPA, Chief Business Development Officer of NJ PURE. "Even more troubling is that some agents and brokers inform physicians that their recommendation offers the best rates and financial strength, failing to offer them more competitive fees and coverage from insurers that they do not have a commission relationship with leaving many physicians with high premiums and poor coverage."
NJ PURE hopes that New Jersey will follow New York's example and look to adopt similar transparency rules for agents and brokers. The financial deterioration of MIIX, formerly the largest writer of medical malpractice insurance in New Jersey before it went insolvent in 2008, is the perfect example of what impact monetary interest can have on an agent or broker. "We cannot have another MIIX situation occur and agent and broker disclosure rules are the way to avoid another medical malpractice crisis," added Poe.
To learn more about NJ please visit http://www.njpure.com or call 877-2NJ-PURE.
About NJ PURE
Headquartered in Princeton, N.J., New Jersey Physicians United Reciprocal Exchange (NJ PURE) is the only direct writer of medical malpractice insurance in New Jersey. The insurer was founded in 2002 as a solution to the medical malpractice crisis in New Jersey. NJ PURE is a not-for-profit reciprocal exchange provider that uses profits solely to build surplus levels and to pay back dividends to policy holders. To learn more about NJ PURE, visit http://www.njpure.com.