Frequently Asked Questions
How is CPP governed?
CPP is governed by a board of directors consisting of insured physicians and one statutory director from South Carolina. The directors are elected by the members to serve on rotating three-year terms ensuring continuity and stability in corporate governance.
How is CPP regulated?
CPP is regulated by the South Carolina Department of Insurance, a state recognized as a leading domicile for captive insurance companies such as CPP. South Carolina was chosen as the domical because of the strict regulatory environment they provide as opposed to many other states. CPP was formed to bring stability back to the professional liability market. A key component in achieving stability was ensuring efficient, yet effective oversight of the company. This oversight includes but is not limited to:
- An annual audit by an independent auditing firm
- An annual rate adequacy review
- An annual reserve adequacy review
- SC Department of Insurance exam every 5 years
Are there geographic limitations on who can be insured with CPP?
Yes. To be insured with CPP your office can be located in Pennsylvania, Maryland, or New Jersey.
What is the claims management philosophy of CPP?
CPP claims management goals are designed to provide an insured-focused and aggressive defense. The defense team is led by Attorney James W. Saxton, a seasoned medical malpractice defense lawyer with over 30 years of experience. The Saxton & Stump defense team also includes several trial lawyers with more than 20 years’ experience. In addition, healthcare paralegals, consultants (including Ph.D.’s nurses, and quality and safety professionals), and physicians provide support to the CPP defense. For example, your case defense team could consist of an experienced defense trial lawyer, a nurse, physician, and risk management consultant. Collectively, the team has an exceptional defense record.
Will I have access to an attorney for advice to guide me if a problem developed?
Absolutely! An experienced Saxton & Stump attorney is available to provide legal support and guidance for all of your liability questions, concerns, or issues.
What makes the CPP approach to litigation better?
Many factors have enabled CPP to be uniquely positioned as your best line of defense. The integration of Risk Mitigation, Event Management, and aggressive defense of litigation is a role model for best practices in managing professional liability claims. Employing cutting edge strategies in controlling and managing litigation, the attorneys at Saxton & Stump aggressively defend the interests of CPP insureds. This isn’t reactive participation in a suit. This is aggressive, proactive, cutting edge defense by attorneys experienced in representing physicians in professional liability claims in state and federal courts. Saxton & Stump has invested in technological resources for use in the courtroom, a national network of experts, jury consultants, mock juries, and more to ensure you receive the best defense possible.
Is CPP's policy on a "Claims-Made" or "Occurrence" form?
Both! CPP offers both claims-made and occurrence policies. Please contact us for more information.
Do I have to purchase an extended reporting period endorsement (tail) from my current carrier?
(Note: This question applies only if your expiring coverage is a “claims-made” form of coverage). No, CPP will utilize the same retroactive date as you have under your current policy. This will avoid the need to purchase an extended reporting period endorsement (tail). This “prior acts coverage” keeps claims-made coverage in force by transferring the risk to CPP. This is done at no additional cost by having CPP rate your premium at the applicable maturity.
Why have claims-made policies become so popular?
For insurance companies operating on a “claims-made” form provides greater predictability in rate setting than occurrence forms of coverage and has become the preferred form of coverage for professional liability policies. Nationally, over 75% of professional liability policies are now written on a claims-made form. CPP has benefited from substantial cost savings by operating in a claims-made environment.
Will I have to purchase an extended reporting period endorsement (tail) when I terminate coverage?
Are there situations where I would NOT be required to purchase a tail?
Yes, there are several scenarios:
- Providers who maintain uninterrupted coverage through CPP for 1 year, are over the age of 50, and retire from the practice of medicine are provided with a “tail” at no additional cost.
- If you die or become disabled and cease practicing medicine, your tail is provided at no cost to you (or your estate).
- If you elect to purchase “prior acts coverage” from your new carrier a tail would not be required.
What are the steps I need to take when I decide to permanently retire from the practice of medicine?
- Notify CPP that you intend to retire and let us know your projected retirement date.
- Complete the State Board of Medicine Status Change Application. The application is located here: http://www.dos.pa.gov/ProfessionalLicensing/BoardsCommissions/Medicine/Pages/Reactivations-and-Status-Changes.aspx
- Mail the completed State Board of Medicine Status Change Application to the address shown on the application two or three days prior to your projected retirement date.
- After you receive a letter from the PA State Board of Medicine confirming your change of status, please notify CPP that the letter has been received.
Will CPP insure my corporation?
Yes. CPP provides coverage for your partnership, joint venture, corporation, association, professional organization, or limited liability organization that is owned by one or more of the insured physicians.
How is CPP’s risk and claims management philosophy different from other insurers?
Complete the appropriate application form and receive a premium indication.
Please contact us if you would like more information about our liability insurance for healthcare professionals.