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Show The Enterprise Review , July 7, 1976 Page 6b Fir sel (siiradl reDidbilif iff ft Insurance Rates to Come Under Scrutiny semdl Continued From Page lb Clyde Christiansen, malpractice representative for Aetnas Utah office, says the reason most companies have stopped writing this insurance is that it is so hard to predict losses. The culprit is what insurance Title Insurance and Escrows Stewart Title Guaranty Company people call the long tail" of of Houston, Underwriters losses. Harlan Y. Hammond, President Medical malpractice Virginia Godfrey, Closing Officer losses have proven to be more 330 Broadway Plaza 250 East Third South uncertain than we expected, Salt Lake City, Utah 841 1 1 The Christiansen said. 3 Telephone losses have been significantly 3 greater in both amount and prob-matic- incurred-but-not-report- ed 355-478- al number. They have driven most companies out of the business. The malpractice insurance dilemma is a recent development. In California years ago, Leavitt said, only one of ten people sued for By 1975, that malpractice. figure had jumped to one of six. This year it s one of four. In the past, companies have been unsuccessful in predicting losses. The methods they used were inadequate, Christiansen said. But now we are getting better at prediction. We can respond better, now. Along with increased ability iii prediction, the business has also seen increased rates, and increased concern from legislators. Expensive premiums have driven the cost of health care beyond the reach of those who need it the Government about the need for government help for small Small hospitals hospitals. are really in trouble, Leavitt said. In Januarys budget session Utahs legislature passed the Utah Health Care Malpractice Act. The act shortened doctors statute of limitations from ten to four years, thus cutting back on the that long tail dangerous forced insurance companies to stop writing malpractice insurance. Insurers are more capable of predicting losses for shorter amounts of time. Although the bill has taken steps toward making malpractice insurance more predictable, Leavitt said, it cannot reduce the premiums. Increased predictability would only open the market, bringing more people into the most. It would make business. insurance more available. Rates Reflect Experience But, he said, it would not decrease the premiums, beBecause Aetna writes 90 cause it would not step the percent of Utahs medical tide of claims. malpractice insurance, it The Act also prohibited really has no competition in the field. But, Christiansen specific dollar amounts from being included in a complaint. claims, the rates are not high. This provision was meant to They only reflect experdecrease the fast buck ience, he said. Meanwhile, Governor motivation for suits that Calvin Rampton has stated publicly that the state of Utah may have to get into the medical malpractice insurance business if private companies keep raising their rates. Rampton was referring to insurance for small hospitals in his statement. Mike Leavitt said he sees no way the government could provide adequate malpractice insurance if private industry cant. OUR KNOWS IN YOUR We know how to get your sales prospects every week for new profitable leads. Try the newspaper that knows your needs. iouyiaIn pCORd Leavitt referred to. The law also authorized doctors and hospitals to insure themselves. But, Christiang sen. claims, should be used by health care practitioners only as a last resort. This practice does not save money, he said. It only changes the financial means of providing insurance. It could turn out to be a more expensive process. self-insurin- Dunford Bakers Double Capacity with Expansion Bums Dunford is preparing for the future. President of Dunford Bakers, he said he is doubling the capacity of his present building because he wants to be ready for the growth of his business when it comes. 952 West 1 500 South Salt Lake City, Utah 84108 Telephone 484-449- 5 But he does agree with the 1 The city and state are growing, and I see a healthy market, he said. Dunford is also building two warehouses on speculation on his property at 3475 South 300 West. Each is about 10,000 square feet. HELP WANTED r FREE SAMPLE ORDER INTERMOUNTAIN COMMERCIAL RECORD 1952 West 1500 South Salt Lake City, Utah 84104 Phone: 484-449- 5 Gentlemen: Pleese send e sample copy of the INTERMOUNTAIN COMMERCIAL RECORD. Firm Name Your Name Stockbrokers currently licensed with the state of Utah. Part or full time. .Title Address City Date. .State, -- . Chatham Securities Corp Zip Phone ER75 |