Annual Report Design

Trust & ServiceT h e I S M I e d I f f e r e n c e

2009 AnnuAl RepoRt

ISMIe MuTual

ConTenT STable of

Message from the Chairman . . . . . . . . . . . . . . . 2

Underwriting . . . . . . . . . . . . . . . . . . . . . . . . 4

Risk Management . . . . . . . . . . . . . . . . . . . . 6

Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Supreme Court overturns Medical Litigation Reform . . . . . . . . . . . . . . . 10

ISMIe Mutual Resource Guide . . . . . . . . . . . . . 12

ISMIe Mutual’s Financials . . . . . . . . . . . . . . . 18

ISMIe Mutual Board of Directors . . . . . . . . . . . . 20

12009 ISMIE Mutual Annual Report

c haIrManMessage from the

“You can rest easy knowing that ISMIE Mutual is always behind you, protecting you.”

2 2009 ISMIE Mutual Annual Report

dear colleagues:

ISMIe Mutual Insurance Company is the medical liability carrier you can trust. We work hard to protect you and your practice every day. We take that responsibility seriously and will always be here for you, our policyholders, as your partner and advocate. We are proud of our reputation as a physician-owned and governed company that provides the very best in service to those we insure. For over 30 years we have continuously insured all specialties throughout Illinois in good times and bad. At ISMIe Mutual, policyholders trust that we are in the Illinois market to stay.

this year’s annual report summarizes ISMIe Mutual’s accomplishments in 2009. Within the report you will find information encompassing all aspects of your company and our commitment to policyholders.

In 2010 we look forward to continuing to provide you with our unparalleled physician-First Service. You can rest easy knowing that ISMIe Mutual is always behind you, protecting you and your practice. thank you for your trust in the coming year. We will continue to prove it is well placed.

Trust and Service are the ISMIe difference.

Sincerely,

Harold l. Jensen, MD Chairman, Board of Directors ISMIe Mutual Insurance Company


As the premier provider of professional liability insurance to Illinois physicians since 1976, ISMIe Mutual offers products that maximize protection and minimize worry. our goal is to provide you with insurance protection that meets your needs every day.

that’s why ISMIe Mutual’s underwriting team partners diligently with our policyholders to ensure you have appropriate liability insurance to protect you and your practice. our experience, gained over more than 30 years in Illinois, gives us expertise in 10 territories and 23 groupings of specialties. that means we provide coverages and set rates according to your unique practice needs – your specialty, your procedures, your location and your underwriting profile.

UnDeRwRIT InGTrust in ISMIe’s

ISMIe Mutual began offering coverage in 1976, to meet the specific needs of physicians and their practices. that core focus remains the same today. We offer flexible coverage solutions for your changing practice, and tailor-made policies are also available. trust in ISMIe Mutual for thorough, solid protection. With our sound underwriting principles and expertise we will make sure your coverage meets your professional liability needs.

In 2009, ISMIe Mutual maintained the same base rates for 2009-2010 with no base rate increase for policyholders renewing on or after oct. 1, 2009. We continued to offer our premium financing plan so policyholders had payment flexibility if desired.


Trust in ISMIe’s

We also streamlined our web site and now offer all of your policy documents and information in one easy-to-access section online – your MyISMIe page. log on to www.ismie.com for access to your policy summary, billing information, loss history letter and more.

Year after year, ISMIe Mutual continues to look for ways to better serve you.

Trust in ISMIe Mutual, where our physician policyholders always come first.

Source: A.M. Best’s Data Services, Best’s State/Line Report – Property/Casualty – US

Top fIve IllInoIS InSurerS (2008, latest figures available at press time)

55.3%

5.2%4.5%3.8%3.2%

28%

Berkshire Hathaway

ISMIE Mutual

AP Capital Group

American International Group, Inc

ProAssurance Group

Individual companies that holdless than 3.2% of the Illinois market


SUCCeSSeSMore Risk Management

Premier Partners will learn the skills and techniques needed to manage everyday liability risk and be able to demonstrate the application of those skills.


2009 was another successful year for ISMIe Mutual policyholders who participated in our Managing Risk – Risk Rewards program. their participation provided them with the tools needed to effectively manage liability risk while earning premium discounts and continuing medical education credits. the number of Risk Rewards activities completed in 2009 was impressive:

nearly 7,000 policyholders participated »in nearly 167,000 activities

About 1,800 policyholders completed »practice assessments

More than 375 policyholders completed »our Fellowship and Fellowship Continuing Recognition (CR) programs

As part of ISMIe Mutual’s continued dedication to partnering with you, our policyholder, to help minimize the risk of medical liability, we developed an innovative risk management program. new for 2010, ISMIe’s Managing Risk partnership program is built on our Managing Risk experience from the past five years. It provides policyholders proven ways to further minimize liability risk while also earning premium discounts.

this exciting new program gives you increased flexibility to become either a Managing Risk premier partner or a Managing Risk partner. premier partners will learn the skills and techniques needed to manage everyday liability risk and be able to demonstrate the application of those skills. partners may sample a variety of our Risk Rewards coursework – either in person or online – to get the tools and practical advice needed to protect their practices from a liability lawsuit.

Simple. efficient. effective. ISMIe Mutual believes this partnership provides a superior way to protect against medical liability claims and earn your Risk Rewards discounts. As always, all Managing Risk courses are offered at no charge to all active policyholders – and in most cases these courses also offer AMA PRA Category 1 Credits™.

ISMIe Mutual will continue to look at innovative ways to work together to minimize the risk of medical liability. the new Managing Risk partnership program is just one example of how ISMIe policyholders have more opportunities than ever to manage their risk while running their practices.

Trust ISMIe Mutual - where service is our specialty.


CL aIMS SeRvICe Physician-First


Although experiencing a claim may be daunting, ISMIe Mutual is here to assist you in every way possible. As your partner in the litigation process, your ISMIe Mutual defense team is dedicated to providing you with our hallmark physician-First Service to help make an unpleasant situation less difficult.

At ISMIe Mutual we understand that a medical liability claim is stressful, but rest assured that we work diligently to defend your skills, your integrity and your good name. our policyholders can be confident that ISMIe Mutual will vigorously pursue an aggressive claim strategy. In 2009, ISMIe Mutual enjoyed a favorable percentage of defense wins on behalf of our policyholders and took 131 cases to trial.

It is important for us to know that we are meeting your needs during the claims process. that is why we ask policyholders facing liability claims to rate their satisfaction with us, through our claims monitoring surveys. last year policyholders measured their satisfaction with ISMIe Mutual’s claims service slightly higher than the prior year, rating our physician-First Service at 9.4 out of a possible high score of 10. this demonstrates the success of our physician-First Service approach with our policyholders when they need us most. Regardless of outcome, physicians who experience a trial overwhelmingly rate our claims service as outstanding. ISMIe Mutual will continue to provide our policyholders with exceptional claims service.

You can trust that at ISMIe Mutual, you always come first.

Physician-First

0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

average IndeMnIT Y per paId cl aIM


Illinois’ meaningful medical litigation reform bill was passed in 2005 and quickly challenged. on nov. 13, 2007, the law was deemed unconstitutional by a circuit court judge. ISMIe Mutual and the Illinois State Medical Society appealed the ruling to the Illinois Supreme Court, on behalf of Illinois physicians and patients. on Feb. 4, 2010, the Illinois Supreme Court undid the will of millions of people and overturned the state’s medical litigation reform law. the court did so even though the last five years have proven that

meaningful litigation reforms work and have been working in Illinois.

ISMIe Mutual strongly disagrees with the ruling. It has joined Gottlieb Memorial Hospital in petitioning the Illinois Supreme Court for a rehearing. the petition states that the court had misinterpreted a previous Illinois Supreme Court decision that upheld the state legislature’s ability to change common law damages in alienation of affections cases. therefore

MeDICaL L IT IGaT Ion ReFoRM

Supreme Court overturns


the 2005 medical litigation reform bill was not an unconstitutional infringement of the doctrine requiring separation of powers between the legislature and judiciary.

“Since passage of the Illinois reform law, patient access to health care has expanded, frivolous lawsuits have ebbed and insurance rates have leveled off or decreased for many doctors. this is practical proof that the law is working,” said Harold l. Jensen,

MD, ISMIe Mutual chairman. “We vehemently disagree with the court’s decision and are extremely disappointed. We’ve been down this path before and will actively continue the fight for fairness in Illinois courts.”

rest assured that ISMIe Mutual is committed to stay in this fight for you and your patients.

MeDICaL L IT IG aT Ion ReFoRM

“We’ve been down this path before and will actively continue the fight for fairness in Illinois courts.”

harold l. Jensen, MdChairman, Board of Directors ISMIE Mutual Insurance Company


GeneRaL ReSoURCeSISMIe Mutual

frequenTlY aSked queSTIonS

policyholders may access answers to frequently asked questions in these categories at www.ismie.com:

Genera » l policyholder information

A.M. Best »

Dividend program »

ISMIe’s relationship with brokers »

Risk man » agement-specific questions

ISMIe MuTual InSurance coMpanY

20 north Michigan Ave., Suite 700 Chicago, Illinois 60602

phone: 312-782-2749

Toll free: 800-782-4767

fax: 312-782-2023

e-mail: [email protected]

ISMIe MuTual regIonal offIce

600 South 2nd Street Springfield, Illinois 62704

phone: 217-528-3750

Toll free: 800-545-7876

fax: 217-525-3923


GeneRaL ReSoURCeS

phYSIcIan advocacY

Reality Medicine: Keeping Doctors in Illinois www.realitymedicine.com

publIcaTIon archIve

At ismie.com you’ll find current and back issues of:

Annual reports »

ISMIE-news »

Mutual Interests »

uSernaMe and paSSword aSSISTance


Toll free: 888-476-7776


ISMIe MutualUnDeRwRIT InG ReSoURCeS


MyISMIE is your online policy information center. Quickly access policy and billing summaries and loss history online.

for aSSISTance wITh or queSTIonS abouT:Applications and procedures »

MyISMIe »

physician Review and evaluation panel (pRep) »

premium financing »

Rates, billing, coverage, policy cancellations, suspensions or locum tenens »

web: www.ismie.com


phone: 800-782-4767, ext. 3350

fax: 312-782-2023

proMpTlY reporT Your pracTIce changeS:

ensure that your professional liability coverage is adequate and up-to-date by notifying ISMIe’s underwriting Division of any changes in your practice activity.

To reporT pracTIce changeS:

Download a Change Request Form at http://www.ismie.com/coverages/Forms_Apps/change_request.pdf

Complete the form and fax to 312-782-2023.

queSTIonS?

Call 800-782-4767 or e-mail [email protected].


for aSSISTance wITh or queSTIonS abouT:

M » anaging Risk partnership program

MyRewards »

Curren » t online courses and live seminars

web: www.ismie.com


phone: 800-782-4767, ext. 3300

fax: 312-782-2023

uSIng The above conTacT InforMaTIon, You MaY alSo:

In » quire about risk management committees and subcommittees

Re » quest a copy of the latest Risk Rewards Resource Guide

RISk ManaGeMenT ReSoURCeS

ISMIe Mutual


for aSSISTance wITh or queSTIonS abouT:Claims » monitoring surveys

Defendant reimbursement coverage »

Federal and state reporting »

legal concerns »

MyISMIe »

physician Review Committee (pRC) »

policy definitions and types of claims »

Reporting of incidents, »claims or suits

web: www.ismie.com

e-MaIl wITh queSTIonS:

[email protected]

e-MaIl To reporT a claIM or InveSTIgaTIon:

[email protected]

phone: 800-782-4767

fax: 312-782-2023

ISMIe MutualCL aIM SeRvICeS ReSoURCeS


S TRonG F InanCIaL STrust ISMIe Mutual’s

ISMIe Mutual’s focus on sound financial management continued in 2009 .

This approach ensures the company’s stability so that it will always be here

for its policyholders . You can trust in ISMIe Mutual’s strong financial future .

operaTIng expenSeSISMIe Mutual’s conservative approach to management and operations is reflected in overall operating expenses.

46.6% 34.6%

10.3%6.6%1.9%

InveSTed aSSeTSthe majority of our investments are in high quality, fixed income securities (bonds). this demonstrates that ISMIe Mutual’s premium rates do not follow the financial markets.

86.3%

2% 3.9%7.8%


adMInISTraTIve expenSe raTIo Compared to Industry peer Companies

(2008, latest figures available at press time)

at ISMIe Mutual, our policyholders trust in a strong financial future .

Source: A.M. Best’s Aggregates & Averages, Property/Casualty – US and Canada


HARolD l. JenSen, MD, – Chairman

JoAn e. CuMMInGS, MD, – Vice Chairman

WAlteR W. WHISleR, MD, – Secretary-Treasurer

pRoCtoR R. AnDeRSon, MD

AleJAnDRo ApARICIo, MD

CRAIG A. BACKS, MD

DennIS M. BRoWn, MD

peteR A. BRuSCA, MD

eDWARD J. FeSCo, MD

RICHARD A. GelIne, MD

HenRI S. HAvDAlA, MD

JAne l. JACKMAn, MD

tIM C. KISABetH, MD

WIllIAM e. KoBleR, MD

JAMeS l. MIlAM, MD

RoBeRt J. olIveR, MD

SAnDRA F. olSon, MD

WAYne v. poleK, MD

RICHARD l. SpeRlInG, MD

MeRItA R.C. tAn, MD

2009-2010ISMIe Mutual Board of Directors


20 north Michigan Avenue, Suite 700

Chicago, Il 60602

Toll-free 800-782-4767

Telephone 312-782-2749

www.ismie.com

ISMIe MuTual

Annual Report Design

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