Kansas Insurance Department Places Physicians Standard Insurance Co. in Rehabilitation
August 29, 2019by
The Kansas Department of Insurance has issued the following news release:
On Aug. 20, 2019, the Shawnee County District Court in Topeka, Kan., signed an order placing Physicians Standard Insurance Co. (PSIC) in rehabilitation under the supervision of the Kansas Insurance Department. The Order of Rehabilitation (Order) was entered with consent of the Board of Directors of PSIC. Pursuant to the Order, Kansas Insurance Commissioner Vicki Schmidt will serve as Rehabilitator.
“A primary responsibility of the Kansas Insurance Department is protecting consumers by ensuring companies are financially solvent and capable of paying claims,” Commissioner Schmidt said. “The Department determined PSIC’s financial condition had deteriorated to the point it was necessary to take the extraordinary step of obtaining a court order to give the Department the authority needed to protect the consumers and policy holders of PSIC. I remain fully committed to rehabilitating PSIC and continuing our responsibility of protecting consumers.”
A letter from the Commissioner to policyholders on Aug. 23, 2019, states, in part, “[t]he Order allows the Commissioner, as Rehabilitator, to reform and revitalize PSIC to protect policyholders.” Under the Order, PSIC continues to operate and current policies remain in effect.
As of the date of the Order, PSIC provided medical malpractice insurance for approximately 484 medical professionals in Kansas and Missouri. Most of the policyholders are in Missouri with just a few in Kansas.
For further information, including the full Order for Rehabilitation, Frequently Asked Questions, and an Open Letter to Policyholders, please visit https://www.ksinsurance.org/department/LegalIssues/PSIC-Rehabilitation.php. Non-media questions can be sent to the Department at KID.PSIC@ks.gov.