Malpractice Insurers Placed Under Supervision in Tenn.
Tennessee Insurance Commissioner Paula A. Flowers announced that three malpractice insurers—Doctors Insurance Reciprocal RRG, American National Lawyers Insurance Reciprocal RRG and the Reciprocal Alliance RRG—were placed under administrative supervision.
Flowers placed the companies under supervision following financial questions about a related company that has been placed into receivership by the Virginia Insurance Bureau.
The three reciprocals write only malpractice insurance and are reinsured by Reciprocal of America (ROA) of Richmond Va. Under the reinsurance arrangement, the reciprocals have transferred all of their risk to ROA, which receives portions of insurance premiums collected by the groups.
ROA’s financial condition could affect the reciprocals’ ability to meet their insurance obligations, according to the Tennessee Department of Commerce and Insurance. Administrative supervision allows the department to closely monitor the reciprocals’ day-to-day business operations.
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