Transcript Professional Liability Insurance Notice H 04-15 Department of Housing and Urban Development

Professional Liability
Insurance
Notice H 04-15
Department of Housing and Urban Development
Office of Multifamily Development
5/24/2016
HUD Notice H 04-15
1
Introduction





5/24/2016
Overview of Presentation
Introduction of Panelists
Discussion of Changes
Presentation of Industry
Professionals
Question and Answer Session
HUD Notice H 04-15
2
Rating Providers of
Insurance




5/24/2016
Liability Insurance must be Rated
by AM Best with a B++
Rating Captives & Risk Retention
Groups
Offshore Insurance Providers
Prohibited
Approval of Additional Rating
Agencies
HUD Notice H 04-15
3
Joint Underwriting
Associations




5/24/2016
What are JUAs
HUD Approval of JUA providers of
Professional Liability Insurance
JUAs in Operation Less than four
Years
Disqualification of JUAs
HUD Notice H 04-15
4
Operator/Manager of
Healthcare Facilities


5/24/2016
Definition of Operator/Manager
Corporate Operator/Managers
HUD Notice H 04-15
5
Financial Statements


5/24/2016
HUD Needs Audited Financial
Statements for Operator/Manager
HUD will Accept Operator/Manager
Certified Financial Statements in
lieu of Audited Financial
Statements
HUD Notice H 04-15
6
Submission of Claims
Information




5/24/2016
Incident Reports for Serious
Injuries
Insurance Loss Reports must be
Submitted
Inventory of Claims must by
Provided
State Licensing Surveys must be
Provided for all G Rated or Higher
Deficiencies
HUD Notice H 04-15
7
HUD Review of
Insurance Needs


5/24/2016
HUD will Review Information Prior
to Submission of Application
HUD will Provide Guidance of
Insurance Needs
HUD Notice H 04-15
8
Surplus Lines Carriers


5/24/2016
Licensed Carriers Acceptable
Surplus Lines Carriers also
Acceptable from HUD as Long as
they have Authorization to Conduct
Business in the State
HUD Notice H 04-15
9
Insurance Tail Coverage


5/24/2016
Tail Coverage is Required if Claims
are the Responsibility of the
Operator/Manager
No Tail Coverage if Property is
being Purchased and Prior Claims
are not the Responsibility of the
New Operator/Manager
HUD Notice H 04-15
10
223 A(7) Refinancing

5/24/2016
If Applicant has Adequate
Professional Liability Insurance,
Requirements of Notice H 04-15
will NOT Apply
HUD Notice H 04-15
11
Troubled State
Designation


5/24/2016
Designation of Troubled State is
Eliminated
HUD will Review Each Applicant
Where High Insurance Costs
Impacts the Feasibility of the
Project
HUD Notice H 04-15
12
Minimum Coverage and
Deductibles




5/24/2016
Minimum Insurance coverage is
$1,000,000/$3,000,000
HUD may Lower Minimum
Coverage is Application is
Infeasible Due to Insurance Cost
Deductible Raised to $100,000
Maximum Deductible is $1,000,000
for Operator/Managers with 50+
Facilities
HUD Notice H 04-15
13
Hamilton Insurance
Agency


5/24/2016
Presentation of Alan Zuccari of
Hamilton Insurance Company on
Industry Perspectives of Revised
Notice
Review of Issues that Insurance
Underwriters Focus on When
Conducting Due Diligence of
Healthcare Facilities
HUD Notice H 04-15
14
Questions and Answers

Panel:
Michael McCullough (HUD)
 Alan Zuccari
 C. Mark Williams (HUD)
 Minnie Monroe-Baldwin (HUD)

5/24/2016
HUD Notice H 04-15
15
Final Comments


5/24/2016
Final Comments from HUD STAFF
Discussion of Next Steps in
Training Process for Professional
Liability Insurance Issues
HUD Notice H 04-15
16