PHILADELPHIA, Dec. 18, 2012 /PRNewswire/ -- Healthcare Providers Insurance Exchange (HPIX), a Philadelphia based, multi-state medical malpractice insurance company, announced today that it has received approval to enter the fourth phase of the company's Surplus Contribution Dividend Program, which calls for the return of $2.7 million to policyholders who joined HPIX between 2003 and 2006. With this year's planned return of $2.7 million, the company will have returned close to $7 million to policyholders since the Surplus Contribution Dividend Program began in 2009.
In the coming year, physicians who joined HPIX in 2006 will receive their first surplus dividend, representing 20% of their original contribution. Physicians who joined HPIX in 2005, 2004, and 2003 will receive their second, third, and fourth surplus dividend, respectively. Each dividend represents 20% of the insured's original contribution. The surplus dividend return is contingent upon the physician being continuously insured with HPIX since their initial contribution.
The company also announced that it will waive surplus contributions for future policyholders. As an insurance exchange, the company has historically required new members to make a capital contribution upon becoming insured with HPIX. COO Nicholas Gaudiosi explains that due to their strong financial performance, the company no longer relies on physician capital contributions to maintain a strong surplus position.
"As a successful company in today's marketplace, we are no longer in a position where we require capital contributions," says Gaudiosi, "But before we stopped collecting capital contributions from our new customers, we at HPIX felt it was important to reward those who helped capitalize this company during its infancy nearly ten years ago. We appreciate their loyalty and are excited to celebrate our success with them. The fact that all of our clients, both old and new are now benefitting from our financial performance is incredibly gratifying."
Healthcare Providers Insurance Exchange (HPIX) began operations in 2002 as a boutique Medical Malpractice company in Pennsylvania. Today, HPIX insures over 3,500 medical professionals in Pennsylvania, New Jersey, Delaware and Maryland. HPIX maintains an explicit three-tiered strategy to prevent claims and lower loss costs, consisting of Early Incident Reporting, Qualitative Underwriting & Risk Management, and Coordinated Claims Defense. HPIX is a reciprocal insurance exchange domiciled in Pennsylvania.