Prior Acts & Extended Reporting Coverage

Coverage for a group's claims arising out of the acts of insureds prior to the policy effective date, but reported on or after the coverage effective date, is not automatic but is subject to advance underwriting approval. Groups applying for prior acts coverage with EPIC must provide a roster of physicians who worked for the group during any prior acts period and also must include details of any claims against these physicians during the prior period being applied for.

Extended reporting coverage ('tail' coverage) is provided by endorsement to EPIC's professional liability insurance policy. Tail coverage is offered to each physician upon departure at the applicable rate, and is extended at no charge for death, disability or retirement. Tail coverage is also generally offered to groups who terminate their policies, and again on an underwritten basis and the applicable rate.

Surplus Contribution

EPIC is owned by its insured groups. Policyholders become owners when each emergency medical group makes a surplus contribution to EPIC on behalf of its physicians. Surplus contributions create a funding pool, required by regulators, which may be used if reserves are deemed inadequate.

EPIC verifies contributions by letter. Groups that join EPIC should not expect these funds will ever be returned; instead they should consider contributions as their stake in the ownership of an insurer whose primary goal is to provide a stable, long term source of professional liability insurance for its emergency physician policyholders.

The current surplus contribution requirement for new insureds is 25% of the mature claims made premium if paid in full, or 30% if paid over three years (40% in the first year, 30% in each of the next two).