Frequently Asked Questions
Got questions about MICA's modified claims-made insurance coverage and attributes of MICA's policy, including tail and nose coverages? We have answers.
In the second year of reporting form claims-made coverage, the policy covers claims reported to the company during that year arising from incidents involving treatment rendered during the first and/or second policy years. The second year's reporting form claims-made premium is, therefore, higher than the premium for the first year of coverage. It represents approximately 60% of the cost of a second year occurrence policy.
The third year's claims-made premium will be made up of three components, recognizing three years of risk; the fourth will have four components, and so on. Under a reporting form claims-made policy, as coverage expands each year to cover the risk of an increasing number of reported claims, the premium will also increase. This continues until a "mature" claims-made rate is reached, reflecting a leveling off in the cost of and number of claims reported.
Prior Acts coverage - also known as nose coverage - is purchased from the new carrier. It covers physicians for occurrences that took place after the retroactive date on the new policy and for which no claim or report of potential claim has yet been made.