Policy Discounts

Physicians may qualify for some or all of the following discounts to individual medical liability insurance premiums.

Risk Management Discount: Utah, Idaho, and Wyoming physicians qualify for a 5% reduction in policy premium after fully attending the UMIA Risk Management Program. Montana physicians receive a 7.5% discount. The discount takes effect the next billing quarter following completion of the program and continues for 3 years. To maintain the discount, the insured physician must attend the Risk Management Program every three years. After 10 years of continuous coverage by UMIA and no paid claims, a physician will continue to receive the Risk Management Discount without attending the RM program. For the purposes of this discount, a claim is defined as any indemnity payment greater than $50,000.

Arbitration Discount: Insured physicians in Utah who utilize arbitration in their practices receive a 5% discount to premium. Arbitration must be offered to all patients even though the patients may opt out of the agreement. Compliance with arbitration is on the honor system. Documentation of the patient’s arbitration status is required by a signed agreement in the chart or a note indicating offered, but declined. The arbitration discount is available only to Utah physicians as it is not a recognized method of dispute resolution for medical liability claims in Montana, Idaho, or Wyoming. To be legal, all physicians using arbitration must use the most recently approved arbitration form. Click here to download this form.

Loss-Free Discount: All UMIA insured physicians will receive a discount to premium each year they remain free of a paid claim up to a policy maximum. In any coverage year if a paid claim occurs, then the discount is reduced by 10%. If a second claim occurs in the same year, any remaining discount is eliminated and it is restarted at 0%. A claim, for the purpose of the loss free credit, is a paid claim greater than $50,000. The use of the no-fault payment (up to $5,000) does not affect the loss-free credit.

Group Discount: Discounts are provided to groups of five or more physicians practicing together as a single business entity with shared practice locations. Discounts vary by group size. For more specifics about the group discounts or a rate quotation, call Marlene Hotchkiss at (801)-531-0375.

Part-Time Practice Discount: Primary care physicians who do not perform surgical procedures, obstetrics, or procedures requiring sedation or anesthesia (endoscopy) may qualify for a discounted premium based on the number of hours per week practiced. Part-time rates are not available for surgical specialties or obstetrics.

No loss free credit is allowed for part time policies. All physicians considering part-time practice may request an underwriting review for a reduction in premium including physicians in the surgical specialties. Reductions in premium may be granted after consideration by the Underwriting Committee of claims history, years insured, hours practiced, location of practice, procedures, and other risk factors. To be considered for a part-time rate, you must be working less than 25 hours per week, have a 10 year claim free history, and be at least 55 years old and have limited surgical practice.

New Practitioners Discount: Physicians entering practice for the first time qualify for a premium discount for the initial years of practice as follows:

The New Practitioner Discount does not apply to any tail coverage purchased during the 5 year discount period. Physicians receiving this discount do not qualify for the loss free credit until their new practitioner discount expires.

To maintain a new practitioner discount, the insured must attend a Risk Management Program during the first year of practice. If the new physician opts not to attend the program during the first year, the discount is discontinued after the first year. No Risk Management Discount is available until the program is attended. Additionally, any paid claim occurring during the five-year discount period voids any additional eligible years of the discount.

Deductible Discounts: Physicians may reduce the annual premium amount by purchasing a policy with a deductible. The deductible can apply to either indemnity or indemnity and expense. There is a two deductible yearly aggregate. The discounts apply to all limits of liability.

The average expense cost to defend a claim without any indemnity payment to the patient is approximately $10,500 and for a paid claim is about $33,000.