Pa. Insurance Department Issues Clarification on HPIX Liquidation

Last Updated: Jul 3, 2018

Insurance-FileThe Pennsylvania Insurance Department has issued a statement clarifying whether certain professional liability insurance policies issued by the Healthcare Providers Insurance Exchange (HPIX) remain valid following HPIX’s liquidation. Access the HPIX clarification here.

In December 2017, HPIX filed for voluntary liquidation after projections indicated that HPIX lacked sufficient assets to cover all of its liabilities. On Jan. 12, 2018, HPIX was placed into liquidation by order of the Commonwealth Court. The Pennsylvania Insurance Department was charged with administering HPIX’s liquidation.

Physicians with policies through HPIX received notice that their policies would terminate thirty-days after the liquidation date or Feb. 11, 2018. Many of the physicians who received this notice had active tail (extended reporting) endorsement through HPIX.

Initially, HPIX tail endorsement was considered terminated on Feb. 11. Upon further review, however, the Department of Insurance has announced that a claim-made policy with a non-expiring extended reporting endorsement is akin to an occurrence policy. The tail endorsement that was initially considered terminated is thus still in effect.

Losses reported post-liquidation for incidents that occurred between the retroactive coverage date and termination date are to be reported to the affected guaranty association for handling.

The Pennsylvania Medical Society will continue to monitor the liquidation of HPIX and share all updates with members.


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