MASSACHUSETTS MEDICAL MALPRACTICE

REINSURANCE PLAN

GOVERNING COMMITTEE

Minutes of a Meeting

December 2, 2004

A Meeting of the Governing Committee of the Massachusetts Medical

Malpractice Reinsurance Plan (“MMMRP”) was held at the Executive Offices, 95A Turnpike Rd, Westborough, MA on Thursday, December 2, 2004.

The following members were present in person:

William T. McGrail, Esq., Chairman

John S. Coldiron, M.D., Vice Chairman

Gerald J. Cassidy

Jill A. Gold

Peter T. Robertson, Esq.

The following MMMRP Staff/Consultants were present in person:

John Tympanick, CPA, MST - CFO MMMRP

Dolores Ivester, Director of Administration – MMMRP

Michael J. Sabbagh,

William Fein, Madison Scottsdale (by conference call)

Peter Kiely, Investment Committee Chairman (by conference call)

Also present in person were:

Susan M. Sersha, President Pennsylvania JUA

Jon Eliot, Pennsylvania JUA

Richard W. Brewer, President ProMutual Group

Gerald Condon, MA Division of Insurance

1.  Call to Order

Mr. McGrail called the meeting to order at 9:07 AM. Dolores Ivester kept a

record of the proceedings.

2. Quorum and Notice

Mr. McGrail noted that all committee members were in attendance and that a

quorum was present at the meeting. Mr. McGrail reported that the required notices for the meeting had been sent to the Secretary of State, Executive Office of the Administration and Finance, and the Division of Insurance and placed on the Plan’s website.

3. Minutes of Prior Meeting

Mr. McGrail noted the minutes to the previous meeting dated September 9, 2004 have been distributed. A motion was made to approve the September 9 minutes. The motion was duly seconded and passed unanimously.

4. Operations Committee Report

Dr. John Coldiron, Chairman, reported the committee had met on November 23 to review and discuss the 2005 Budget of Operations. The Governing Committee members have received copies of the budget. Dr. Coldiron reports that the Operations Committee recommends to approve the budget as presented. Following questions and discussion on Incurred Losses, Unearned Premium and Assessment Income, a motion was made to approve the 2005 Budget for Operations as presented. The motion was duly seconded and passed unanimously.

4.  Financials

Financial information had been distributed to the Governing Committee members including Summary of Ceded Policies Written and Ceded Policies In Force reports as well as unaudited financial statements through September 30, 2004. Mr. Tympanick highlighted items including: 432 Policies ceded-to-date with $7.6M of premium; Assets of $30.3M; and variances on the Statement of Operations including Ceded Premium, Accounting Expenses and Investment Income. The Plan now has 576 policies-in-force reflecting a downward trend largely due to changes from one member. Category 1 still reflects largest percentage of policies, while Category 6 maintains a significant percentage of premium.

Mr. William Fein and Mr. Peter Kiely then joined the meeting via conference call at 9:30AM. Attendees were given copies of the September 30, 2004 Madison Scottsdale Portfolio Investment Report. Mr. Fein began the discussion with an overview of the third quarter 2004. He noted that inflation has slowed from earlier rapid advances. Mr. Fein continued with discussion of Oil Impact on the Economy, GDP and Inflation, Employment, 10-year Treasury yields, and Bond Prices. The portfolio is currently valued at $28.7M with an increase of Cash Allocation to 11% keeping the portfolio in a defensive position in a rising rate market. Effective Duration is 2.2 years with Yield at Cost of 3.20%. Approximately 2/3 of the portfolio is positioned under 5 years maturity. The discussion and conference call ended at 10AM. A copy of the Madison Scottsdale report is attached.

6. The meeting resumed at 10:10AM after a 10 minute break.

7. Pennsylvania Professional Liability JUA

Ms. Susan Sersha, President PPL JUA, began presentation with description and makeup of the organization. The PA JUA is a non-profit pursuant to statute with a governing board of 13 members: 4 appointed by the Division of Insurance and 9 elected. The company follows a full insurance model with the intent to never assess members although its bylaws allow it to do so. Ms. Sersha supplied copies of financial statements thru September 2004 as well as charts of In-Force Policies and Premiums. Discussion, questions and answers continued regarding topics of members, administration broker fees, rates and surcharges, reserves, surplus, loss ratios, claims and installment plan. Ms. Sersha invited the audience to visit their website www.PAJUA.com . She pointed out that the bylaws and Plan of Operations are not on the website.

10. New Business

Next meeting is scheduled for Thursday February 10, 2005, 9A.M. at MMMRP Executive Offices, 95A Turnpike Rd, Westborough, MA.

11. Old Business

No old business to discuss.

12. Adjournment

A motion was made and duly seconded to adjourn the Governing Committee meeting at 11:30 A.M. The motion passed on a unanimous vote.

A true record transcribed on December 28, 2004.

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