One-on-One with NIIA’s President Rick Aniello

Medical malpractice is hot on the list of concerns for Nevada’s independent agents, and the state as a whole. With physicians leaving the state due to the lack of affordable med-mal coverage, the crisis has caught the attention of the insurance industry, the medical community, and politicians statewide.

Insurance Journal looked to Nevada Independent Insurance Agents (NIIA) president Rick Aniello for more information on the current status of the med-mal crisis in Nevada. In this exclusive e-mail interview, Aniello answers several questions about the issues affecting Nevada’s insurance marketplace.

Aniello is also president and CEO of Las Vegas-based Aniello Insurance Agency. He previously served as past president of the Independent Insurance Agents of Southern Nevada.

Insurance Journal: What are the biggest issues of concern to Nevada agents right now?

Rick Aniello: The biggest issues concerning Nevada agents are the lack of available and medical malpractice markets and the lack of markets for contractor’s liability (particularly residential). Additionally, the lack of available coverages, additional exclusions and high deductibles and self-insured retentions on construction liability accounts is of concern to us.

IJ: Tell me your opinion about the tort reform package backed by Nevada physicians. What do you think will or won’t work about the package?

Aniello: The tort reform package that passed in the last legislative session was a good start but not many of the physicians that you talk to are that happy about it. The physicians wanted something to mirror the MICRA legislation that was passed in California. Our legislation has several situations where the cap can be circumvented and our cap applies per defendant, rather than per claim. Additionally, we still have joint and several liability and the California legislation does not. A group called “Keep Our Physicians in Nevada” managed to get enough signatures to put medical malpractice reform on the ballot this November. So, the voters will be able to decide if Nevada adopts the California legislation.

IJ: How are agents dealing with the med-mal crisis? What suggestions do you have for agents to pass on to their clients?

Aniello: Basically, agents are dealing with the medical malpractice crisis in Nevada by insuring our physician clients through MLAN which is the Medical Liability Association of Nevada. If it was not for the State of Nevada stepping in and forming MLAN we would have seen a mass exodus of our physicians to other states. This past year has gotten even tougher as few other admitted malpractice insurers are no longer writing business in Nevada. For all practical purposes we have the state association MLAN and one other non-rated admitted insurance carrier writing physicians malpractice insurance in Nevada. There simply is not a lot of choices right now for our physicians.

IJ: Does the lack of availability for med-mal coverage cross over into other lines as well? Does it affect the agent’s ability to obtain professional liability or errors & omissions on behalf of the consumer?

Aniello: The lack of available medical malpractice markets has not really impacted or crossed into other lines of insurance. Medical liability is such a specialized field that it stands on its own. There is still plenty of markets for other errors and omissions coverages.

IJ: I understand there’s been an ongoing problem with excessive litigation in the area of construction defects. What can you tell me about the legislation’s attempt to solve this issue?

Aniello: Regarding construction defect legislation, we did pass a bill this last session which gives our contractors the right to repair before a lawsuit can be filed. The new law went into effect in August of last year so it really has not been on the books long enough for us to see if it will make a difference. The bill is certainly an improvement over what we had before and only time will tell if it will slow down the construction defect lawsuits that we have seen in the past. I can tell you the insurance carriers are not lining up to start writing residential construction liability insurance in Nevada. The insurance carriers have been beaten up so bad over the past years that I would guess they will take a long wait and see approach before they start writing in Nevada again. For the foreseeable future we will have to make do with the few non-admitted markets that will entertain residential construction liability insurance.

IJ: Are there any issues in the personal lines arena, such as homeowners, auto?

Aniello: The personal lines market in Nevada is healthy and fine. Because of our drier climate we have not been hit that bad with mold lawsuits. Personal auto and homeowners appears to be profitable business for insurance carriers writing these lines in Nevada.