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Professional Liability Insurance Notice H 04-15. Department of Housing and Urban Development Office of Multifamily Development. Introduction. Overview of Presentation Introduction of Panelists Discussion of Changes Presentation of Industry Professionals Question and Answer Session.
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Professional Liability InsuranceNotice H 04-15 Department of Housing and Urban Development Office of Multifamily Development HUD Notice H 04-15
Introduction • Overview of Presentation • Introduction of Panelists • Discussion of Changes • Presentation of Industry Professionals • Question and Answer Session HUD Notice H 04-15
Rating Providers of Insurance • Liability Insurance must be Rated by AM Best with a B++ • Rating Captives & Risk Retention Groups • Offshore Insurance Providers Prohibited • Approval of Additional Rating Agencies HUD Notice H 04-15
Joint Underwriting Associations • What are JUAs • HUD Approval of JUA providers of Professional Liability Insurance • JUAs in Operation Less than four Years • Disqualification of JUAs HUD Notice H 04-15
Operator/Manager of Healthcare Facilities • Definition of Operator/Manager • Corporate Operator/Managers HUD Notice H 04-15
Financial Statements • HUD Needs Audited Financial Statements for Operator/Manager • HUD will Accept Operator/Manager Certified Financial Statements in lieu of Audited Financial Statements HUD Notice H 04-15
Submission of Claims Information • Incident Reports for Serious Injuries • Insurance Loss Reports must be Submitted • Inventory of Claims must by Provided • State Licensing Surveys must be Provided for all G Rated or Higher Deficiencies HUD Notice H 04-15
HUD Review of Insurance Needs • HUD will Review Information Prior to Submission of Application • HUD will Provide Guidance of Insurance Needs HUD Notice H 04-15
Surplus Lines Carriers • Licensed Carriers Acceptable • Surplus Lines Carriers also Acceptable from HUD as Long as they have Authorization to Conduct Business in the State HUD Notice H 04-15
Insurance Tail Coverage • Tail Coverage is Required if Claims are the Responsibility of the Operator/Manager • No Tail Coverage if Property is being Purchased and Prior Claims are not the Responsibility of the New Operator/Manager HUD Notice H 04-15
223 A(7) Refinancing • If Applicant has Adequate Professional Liability Insurance, Requirements of Notice H 04-15 will NOT Apply HUD Notice H 04-15
Troubled State Designation • Designation of Troubled State is Eliminated • HUD will Review Each Applicant Where High Insurance Costs Impacts the Feasibility of the Project HUD Notice H 04-15
Minimum Coverage and Deductibles • Minimum Insurance coverage is $1,000,000/$3,000,000 • HUD may Lower Minimum Coverage is Application is Infeasible Due to Insurance Cost • Deductible Raised to $100,000 • Maximum Deductible is $1,000,000 for Operator/Managers with 50+ Facilities HUD Notice H 04-15
Hamilton Insurance Agency • Presentation of Alan Zuccari of Hamilton Insurance Company on Industry Perspectives of Revised Notice • Review of Issues that Insurance Underwriters Focus on When Conducting Due Diligence of Healthcare Facilities HUD Notice H 04-15
Questions and Answers • Panel: • Michael McCullough (HUD) • Alan Zuccari • C. Mark Williams (HUD) • Minnie Monroe-Baldwin (HUD) HUD Notice H 04-15
Final Comments • Final Comments from HUD STAFF • Discussion of Next Steps in Training Process for Professional Liability Insurance Issues HUD Notice H 04-15