MLMIC Payout Update

MLMIC Update: Hospital Association Seeks Broadening Of Rights Of Employers To Object To Payouts To Policyholders

Under the Plan of Conversion of the Medical Liability Mutual Insurance Company (“MLMIC”), MLMIC policyholders for any time during the period July 15, 2013 through July 14, 2016 are eligible to receive a cash payout, estimated to be approximately 1.9 times the amount of premiums paid during this period. Generally, the healthcare professionals covered through MLMIC are on record as the eligible policyholders.

The Plan of Conversion provides administrators or employers who claim entitlement to the proceeds the opportunity to file an objection to payment to the policyholder.  Only parties identified on policies as the policy administrator or EPLIP Employer may file objections to payouts to policyholders.

 

At the August 23, 2018 public hearing held by the New York State Department of Financial Services (“DFS”) to consider MLMIC’s Plan of Conversion, the General New York Hospital Association urged the DFS to include language in its final order approving the Plan of Conversion stating that MLMIC should accept objections from all entities which functioned as policy administrators, even if they were not identified as such in the policy.

The Department of Financial Services is expected to render its final order in the near future.

Nolan & Heller, LLP has been retained by healthcare professionals to assist them in protecting their rights where their employers (or former employers) have objected, or may object, to payment of MLMIC sale proceeds directly to the policyholder.  Please contact Justin A. Heller, Esq. at jheller@nolanandheller.com or Alexandra B. Becker, Esq. at abecker@nolanandheller.com, or call us at (518) 449-3300

Nolan & Heller, LLP is a preeminent, award winning business law firm with offices in Albany and Syracuse, New York, and serving clients throughout New York State.

 

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