Subject:2010North Carolina Professional Liability Data Report

According to North Carolina General Statute §58-2-170 (a) and (b), §58-2-190, and 11 North Carolina Administrative Code 16.0104, every insurer, self-insurer, and risk retention group authorized in lines 13b or 14b to write“professional liability” insurance in North Carolina shall file with the Commissioner a statement providing information on North Carolina premium, claims, losses, and expenses.

CHANGES FOR THIS YEAR

TheData Call and the Verification Form are only required to be submitted if a company wrote professional liability insurance with at least $25,000 of Direct Written Premium in 2010.

If a company wrote professional liability insurance with less than $25,000 of Direct Written Premium in 2010, or no professional liability insurance at all, then neither a Data Call nor a Verifcation Form is required; no submission is required.

Reporting data for line 11 Medical Malpractice is required but for lines 17.1 or 17.2 is optional.

Reporting data for Direct business is required but for Net business is optional.

The number of earned exposures or number of beds or visits is now required. The number of earned exposures applies to the number of medical malpractice professionals while the number of beds or visits applies to the number of hospitals or health care facilities.

For the Verification Form, scanned or faxed signatures are permissible.

The Data Callis created from an Excel file template available online. The Verification Form may be created either from the Excel file template which pre-populates as in the past; or, a “*.pdf” file is now available to print out and complete by hand. Either version of the Verification Form must be signed by the contact person and an officer, for legal record. The mailing address is printed on the Verification Form, and an envelope template is also available online. The Data Call may be emailed to the Actuarial Services Division’s using the email .

Who is required to file? What information must be filed?

All insurers, self-insurers, and risk retention groups that had Direct Written Premium ofmore than $25,000of “professional liability” insurance in North Carolina in 2010are required to submit a Verification Formand a Data Call.The file<2010NCPL_DataCall.xls> and the instructions <2010Instructions_DataCall.doc are now available on the Department’s website. The Data Call may be submitted either through email or by postal mail saved to a clean CD or disk. You may review the document <2010
ProfessionalCoverageList.doc to help determine whether your insurance company wrote business in the “professional liability” categories in North Carolina in 2010.

Note that a separate filing must be made for each insurer.

“Professional liability” insurance includes medical malpractice plus insurance on other professionals such as lawyers, accountants, and directors and officers. A list of “professional liability” coverages is contained in the document <2010NCPL_CoverageList.doc which is available on the Department’s web page. The term “professional liability” corresponds to NC lines of authority 13b (Other Personal Injury Liability) and 14b (Other Property Damage Liability), or to Annual Statement line of business 11 (Medical Malpractice)and a portion of line 17 (Other Liability).

TheVerification Form,Data Call spreadsheet, and related documents can be printed or downloaded from the NC DOI website by following this link:

To avoid errors and lost effort, SAVE THE EXCEL FILES TO YOUR COMPUTER BEFORE ATTEMPTING TO OPEN THEM! Please review the instructions to the Data Call <2010Instructions_DataCall.doc> to better understand your company’s requirements.

Please mail the signed Verification Form to the address at the top of the form. If your company wrote $25,000 or more in Professional Liability premiums in 2010, please email the completed data call to r mail it on CD/disk.

Alternatives: For companies that wrote $25,000 or more in Professional Liability premiums in 2010, a Verification Form may be sent by email. Scanned or faxed signatures will be accepted.

Please remember that failing to filethe required information or failing to file on time, can result in monetary penalties and the revocation of your company’s license to write insurance in North Carolina.

If you have any questions about this report, please call me at 919-807-6646 or send an email to .

Sincerely,

Arthur J. Schwartz

Associate P&C Actuary

919-807-6646