We're proud to have provided our members twelve consecutive years of dividends!
We're pleased to have a consistent track record of dividends for our members. We see our dividend delivery as a celebration of our mutual success. Thank you for partnering with us and for your continued business.
It is our current practice to apply the annual dividend as an account credit. If you would prefer to receive a check for your dividend rather than an account credit, please use the form below to initiate a check request by February 14, 2020.
If you prefer to receive your 2019 dividend by check, please submit this completed form to Physicians Insurance by February 14, 2020. You can submit this form by e-mail at talktous@phyins.com or by fax at (206) 343-7100. NOTE: In order for check requests to be processed, this form needs to be completed in its entirety.
2019 Dividend FAQs (for download)
Who is eligible for the dividend?
Those eligible include Physicians Insurance physicians or other persons with individual limits of liability coverage in force on September 30, 2019. Exceptions are those insured under an extended reporting endorsement or on a policy subject to a retrospective rating plan. Hospitals, stop-loss policyholders, and exposures written on alternative rating approaches are also eligible.
How is the dividend calculated?
Eligible recipients will receive a pro-rata share of the $5 million dividend, based on their medical professional liability premiums written from January 1, 1982, through September 30, 2019. The minimum dividend payment is $100.
Is my dividend taxable?
This distribution is classified as a return of premium, and no 1099 forms will be issued. We recommend that you review this dividend with your tax advisor.
What’s different about this year’s dividend distribution?
The dividend in 2019 is being distributed as a credit to your account, instead of being sent to you as a check. The new method represents a considerable expense-and-materials savings to your member-owned and -directed company, but also immediately benefits you by applying the dividend directly to your account. The dividend is applied to any remaining balance due as of your December invoice. Depending on your payment plan, this may result in a temporary credit balance that will carry forward to the next billing cycle, or it will reduce the amount due for that payment period.
I used to get a check. Why did that change?
Until 2018, dividends were distributed by check. This process took about 200 staff hours and more than $10,000 in total costs. To better steward our member resources and align with industry standards, we changed the distribution method in 2018.
What if I want a check instead of a credit to my account?
Dividends are now distributed as credits to your account. If you do not wish for the dividend to be applied as a credit to your account, you may request a refund of that credit via check. Requested refunds will be distributed after the December billing cycle is completed. All requests for checks must be made prior to February 14, 2020.
I am on a group policy. How will my dividend be paid?
For group policies with both an entity and full-time equivalency (FTE) risks, the FTE dividend will be applied to the entity UNLESS the entity has no coverage or limits on the policy (resulting in no premium charged to the entity). In that case, the FTE dividend will be applied to the FTE-type risk with the largest current premium. Individual rated provider risks will have their credit applied to their individual premium.
Why is my partner's dividend higher than mine?
We calculated dividend distribution based on each current insured’s historic premium—the total each qualified recipient paid since starting membership with Physicians Insurance. Even if you and your partner now practice similarly and have identical premiums, in the past you may have paid a higher or lower premium because of a difference in specialty, procedures, surcharge, limits of liability purchased, part-time credit, sabbatical taken, or a number of other factors.
How much has Physicians Insurance returned to its policyholders?
Physicians Insurance distributed a $5 million dividend to qualifying policyholders in 2019. This brings the company’s historical total dividend distribution to over $100 million. This is just one of the benefits of being insured by a member-owned mutual company.
Can I get a listing of how much of the dividend each provider on our policy earned?
Yes. The account detail statement included with your invoice will show dividend credit allocations. If your invoice does not ordinarily include this detail statement, please contact your account manager by calling us at (800) 962-1399. We can provide you with a detailed summary of dividend allocation by insured risk. Not everyone wants or needs this type of information, so to steward member resources effectively we provide this detail on request.
FOR HOSPITALS
Are hospitals eligible for a dividend?
Hospitals may be eligible for a dividend, based on the type of policy they carry. If a hospital purchases hospital medical professional liability coverage, including coverage for providers calculated on a full-time equivalency (FTE) basis, then the hospital is eligible for a dividend based on the total of the hospital and provider premiums while insured together. A hospital insured without any employed providers is eligible for the dividend based on its own entity premium. If a hospital purchases individual limits for its providers, then the hospital’s dividend for those providers is computed based on the historical premium of the providers, as relates to the total company historical premium.
Hospitals with an excess policy are also eligible to receive a dividend based on the historical written premium.
In any case, the hospital’s billing statement will show the dividend applied to the entity line.
