The MagMutual headquarters is located at: 3550 Peachtree Road, Suite 500 Atlanta, GA 30326
For billing purposes, please mail checks to the address on your invoice.
MagMutual offers insurance coverage nationwide. Please contact us at 800-282-4882 to learn more about the options in your state.
An egg probably isn’t the first thing that comes to mind when you think of healthcare liability insurance, but that’s largely the point. MagMutual isn’t just another traditional medical malpractice insurance provider, and we wanted a brand that reflected how different they we are. Learn more on our MagMutual brand page.
Our standard office hours are Monday-Friday, 8:30 am-5 pm (ET). Our Service hours are 8 am – 8 PM (ET). For general assistance, please call your agent or 800-282-4882.
For PolicyOwners having an urgent or emergency situation who need immediate support, please call our 24/7 physician hotline to speak to one of our experienced physician consultants, you can call 800-282-4882 to be connected to this hotline.
A
Absolute Liability
No proof of fault or negligence necessary to hold a person or company responsible.
Adjudication
The legal process of resolving a dispute.
Admitted Assets
The assets of an insurance company that the state allows to be included on its financial statements.
Aggregate Limit
The maximum amount an insurer will pay for covered losses during the defined policy period.
Arbitration
Resolution of a dispute by an unbiased third party chosen by the involved parties.
C
Captive
An insurance company that is wholly owned and controlled by its insureds.
Claim
A demand made for money or bill reduction alleging injury, disability, sickness, disease or death of a patient arising from a medical provider’s rendering or failing to render professional services.
Claims-Made Insurance
Claims-made is a form of insurance in which coverage is limited to liability for claims that arise from incidents or events that occur and are reported to the insurance company during the policy period.
Consent to Settle
A policy provision that requires the insured’s consent before the insurer is allowed to settle a claim.
D
Date of Incident
The date on which the alleged liability incident took place. It can also be called the date of occurrence.
Date of Reporting
The date on which an incident was reported to the insurance company.
Declaration/Declarations Page
Part of an insurance policy that declares the name and address of the insured, the policy period, the amount of insurance coverage, premiums due for the policy period and any coverage restrictions.
Deductible
The amount that must be paid out of pocket by the policyholder before the insurance provider pays.
Dividend
A partial return of premium to policyholders, usually dependent on the amount of claims paid or to be paid, declared by the insurance company’s board of directors.
Domiciled
Refers to the state in which an insurance company receives a license to operate. The company is then regulated by that state’s department of insurance.
E
Earned Premium
The portion of premium that applies to an actual coverage period. Policyholders usually pay a calendar quarter or more in advance of the actual coverage period; the advance payment is initially unearned and becomes earned incrementally during the ensuing coverage period.
Economic Damages
Out-of-pocket monetary expenses, such as medical bills incurred, lost wages, etc.
Endorsement
An amendment, sometimes referred to as a rider, added in writing to an insurance policy.
Excess Insurance
A separate insurance policy with limits above the primary (or “first dollar”) policy.
Experience Rating
A system of pricing insurance in which the future premium reflects the actual past loss experience of the insured.
Extended Reporting Endorsement
Also known as tail coverage, it provides coverage for claims made for incidents that occurred during the policy period but were not reported until after the policy period expired.
I
Incident
An event that the patient claims resulted in culpable injury.
Incurred But Not Reported Losses (IBNR)
An estimate of losses for incidents that have occurred during a policy period (usually one year), but have not yet been reported to the company. Mainly applicable to occurrence policies, these apply to claims-made policies only when extended reporting endorsements (tail coverage) are in effect.
Incurred Losses
These losses include both paid and unpaid (reserved) losses.
Indemnity
An insurance company’s payment to a plaintiff in settlement or adjudication of a claim.
Indemnity Reserves
Claims reserves that are set aside to pay the portion of claims costs paid directly to claimants.
J
Joint Underwriting Associations (JUAs)
State-sponsored insurance vehicles for physicians who do not have access to other sources of professional liability insurance. Insureds of some JUAs bear infinite assessability for losses incurred by the organization during prior years of insurance activity. In some states in which JUAs operate, all casualty insurers in the state are assessable. In others, only the insured doctors are assessable. In those instances in which only the insureds of the JUA are assessable, ultimate financial obligations are unpredictable and can be significant.
L
Liability
Legal responsibility for one’s actions or omissions.
Limit
The maximum amount paid under the terms of a policy. A professional liability insurance policy usually has two limits, a per-claim limit and an aggregate limit.
Loss Ratio
Losses incurred divided by net earned premium.
Loss Reserves
The amount set aside to pay for reported and unreported claims.
M
Malpractice
Medical malpractice is a legal cause of action that occurs when a medical or healthcare provider deviates from professional standards, causing injury, harm or death to the patient.
N
Net Earned Premium
Net written premium (plus assumed premium for reinsuring risk) less unearned premium.
Net Written Premium
Direct written premium less payments to reinsurers.
Nonassessable
A condition under which an insurance company is sufficiently financially sound, freeing policyholders of an obligation to pay additional money for past losses for which reserves are inadequate.
Noneconomic Damages
Pain, suffering, inconvenience, loss of consortium, physical impairment, disfigurement and other nonfinancial damages.
O
Occurrence-Based Insurance
A type of policy in which the insured is covered for any incident that occurs (or occurred) while the policy is (or was) in force, regardless of when the incident is reported or when it becomes a claim.
P
Paid Losses
The amount paid in losses during a specified time period.
Policy
The contract between an insurance company and its insured. The policy defines what the company agrees to cover for what period of time, as well as the obligations and responsibilities of the insured.
Policy Term
The length of time for which a policy is written.
Premium
The amount of money a policyholder pays for insurance protection.
Premium Credits
A credit included in the premium calculation that recognizes a reduction in hazard, which makes the account a better risk.
R
Rate Maturation
In the early period of coverage (typically the first four to seven years), claims-made insurance rates rise annually until they are considered mature. Increasing the premium is necessary because the longer the physician is insured, the greater the potential for a claim. That is because of the delay between incidents occurring and patients filing claims from those past incidents.
Reinsurance
An agreement between insurance companies in which one accepts all or part of a risk or loss of the other. Most primary companies insure only part of the risk on any given policy with the rest covered by reinsurance entities.
Retroactive (Prior Acts) Coverage
Under a claims-made policy, retroactive coverage provides insurance for claims arising from incidents that occurred while a previous claims-made policy was in effect, but weren’t reported until that policy was terminated.
Retrospective Rating
A formula of premium calculation that reviews the previous loss experience and, after the policy year ends, adjusts the premium based on the loss experience. Some plans provide a guaranteed maximum cost; some guarantee that the premium will not exceed the standard premiums otherwise applicable.
Reunderwriting
Reevaluating policyholders and imposing surcharges, deductibles or nonrenewal in situations where the policyholder’s claims history or other experience presents creates an undue liability risk.
Risk Classifications
A risk classification is based on the number and amount of losses that can be expected from a physician’s specialty and procedures.
Risk Management
An approach to understanding the causes of and reducing or eliminating the possibility of unexpected outcomes. Risk management helps improve patient safety, reduce injury resulting from negligence and lower resulting financial losses.
Risk Purchasing Group (RPG)
An association of insurance buyers with a common identity who form an organization to purchase liability insurance on a group basis. Since an RPG purchases coverage from an insurance carrier, no capital contributions are required in order to join.
Risk Retention Group (RRG)
A group of insurance buyers who form an insurance company, which is required to follow the insurance laws of at least one state and is governed by the laws of the state in which it is domiciled. When first joining an RRG, a physician is typically required to pay a capital contribution in addition to the annual insurance premium.
S
Standard Risk
A person who is eligible for insurance without restrictions or surcharges based on underwriting standards.
Substandard Risk
A person who must pay higher premiums and is subject to special coverage restrictions based on underwriting standards.
Surplus
The amount by which a company’s assets exceed its liabilities. An insurance company’s surplus allows it to take on risk and serves as a cushion in the event that the losses from that risk exceed the policyholder premiums intended to cover the risk.
T
Tail Coverage (Extended Reporting Endorsement)
Coverage that provides protection against claims that arise from professional services performed while the claims-made policy was in effect, but which were reported after the termination of the policy.
U
Umbrella Coverage
Umbrella coverage is a type of excess insurance that provides coverage over and above the policyholder’s other policies.
Unallocated Loss Adjustment Expenses (ULAE)
Claims expenses of a general nature that are not directly attributable to specific claims. They include the salaries of claims personnel and the other costs of maintaining a claims department.
Unearned Premium
That portion of a premium that is paid in advance of a coverage period. Policyholders usually pay a calendar quarter or more in advance of an actual coverage period; the advance payment is initially unearned and starts to become earned on the first day of the coverage period and incrementally thereafter.
V
Vicarious Liability
Liability for the acts of someone else.