Provided by: Jennifer Kirschenbaum, Esq.
July 12, 2018
My practice paid for physician employee malpractice policies and now some of those people are gone. How do I recover the cash consideration MLMIC is paying out from those doctors?
Thanks, Dr. F
Thanks for the question Dr. F. Many of our colleagues are in the same position and MLMIC has already laid out a clear path towards recovery or resolution. To sum up -
- Each Policy Administrator (practice) will receive with its statement of anticipated Cash Consideration a "consent" assignment form for each individual physician to fill out that will designate the practice as the actual recipient of any cash.
- If a doctor refuses to sign, then the Practice should file prior to August 23, 2018 with MLMIC a notice of such refusal.
- MLMIC will hold the disputed Cash Consideration in escrow until directed by both parties to release or by an authority with jurisdiction, and how.
- Physician and Practice would duke it out as set forth in their underlying agreement.
See materials from MLMIC below -
MLMIC FAQs etc. - https://www.mlmic.com/wp-content/uploads/2018/06/mlmic_policyholder_information_statement.pdf.
Q13. How does an Eligible Policyholder designate a Designee?
A13. Subsequent to mailing this policyholder information statement, MLMIC will send notices to Policy Administrators, EPLIP Employers and Eligible Policyholders with Policy Administrators and EPLIP Employers notifying them that the allocation of Cash Consideration will be payable directly to Eligible Policyholders unless the Eligible Policyholder appoints a Designee as described in A12. Enclosed with those notices will be a consent form to be completed by the Eligible Policyholder and returned to its applicable Policy Administrator or EPLIP Employer to the extent it chooses to designate such Policy Administrator or EPLIP Employer as its Designee to receive the portion of the Cash Consideration allocated to such Eligible Policyholder. In order for a Designee to be appointed, the Eligible Policyholder must return the completed consent form to its applicable Policy Administrator or EPLIP Employer, and the applicable Policy Administrator or EPLIP Employer must return the completed consent form to MLMIC prior to the date of the Superintendent’s public hearing. If MLMIC has received a completed consent form prior to the date of the Superintendent’s public hearing pursuant to this A13, the allocated Cash Consideration will be distributed to the Eligible Policyholder’s Designee. If you have any questions regarding these notices or consent forms, please call MLMIC toll free at 1-888-467-9074 from 9 a.m. to 4 p.m., Eastern Time, Monday through Friday until Wednesday, August 22, 2018.
Q14. What if a Policy Administrator or EPLIP Employer objects to the payment of the allocation of Cash Consideration directly to an Eligible Policyholder?
A14. If a Policy Administrator or EPLIP Employer has not been specifically designated to receive the Cash Consideration allocated to an Eligible Policyholder, but nevertheless believes it has a legal right to receive such Cash Consideration, the Policy Administrator or EPLIP Employer may send MLMIC a letter (return receipt requested) or an e-mail (preferably an e-mail) at the address set forth in A11 that sets forth such position, along with a statement to the effect that it has provided a copy of such letter or e-mail to the applicable Eligible Policyholders, at any time prior to the date of the Superintendent’s public hearing. If sent by mail, the objection will be considered to be received by MLMIC only when actually received.
Q15. What happens if a Policy Administrator or EPLIP Employer files an objection to the payment of the allocation of Cash Consideration directly to an Eligible Policyholder?
A15. If MLMIC receives an objection properly filed as set forth in A14, the allocated Cash Consideration will be held in escrow by the Conversion Agent until MLMIC receives joint written instructions from the Eligible Policyholder and the Policy Administrator or EPLIP Employer as to how the allocation is to be distributed, or a non-appealable order of an arbitration panel or court with proper jurisdiction ordering payment of the allocation to the Policy Administrator or EPLIP Employer or the Eligible Policyholder. Upon receipt of such joint written instructions or non-appealable order, such amount will be paid by the Conversion Agent, as promptly as practicable, to the Policy Administrator, EPLIP Employer or Eligible Policyholder, as applicable, with interest accruing from the twentieth (20th) Business Day following the Closing.