PPM + NORCAL

Preferred Physicians Medical (PPM) to Join with NORCAL Mutual (NORCAL)


Frequently Asked Questions for PPM Policyholders


What is the reason for the partnership?

A

PPM and NORCAL have a shared commitment to always placing the best interests and reputations of their policyholders at the forefront of their efforts. For PPM, this partnership with NORCAL provides an opportunity to strategically enhance PPM’s geographic footprint across the anesthesia community and positions PPM to more effectively address the changing healthcare landscape and its impact on anesthesia practices.

Additionally, this partnership with NORCAL will allow PPM to maintain its leadership position within the anesthesia community, particularly in the areas of risk management and patient safety. Partnering with NORCAL will provide PPM with opportunities it would otherwise be unable to pursue independently, providing access to broader resources and innovative products designed to bring additional value to PPM policyholders.

For NORCAL, partnering with PPM provides an opportunity to continue its national expansion and establishes Overland Park, KS (PPM’s headquarters) as an important Midwest presence that compliments NORCAL’s other core offices.

 

 

Q

How does this benefit PPM shareholders/policyholders?

A

As part of this partnership arrangement, PPM Services (a stock insurance holding company for PPM) will merge with a subsidiary of, and be acquired by NORCAL Mutual. PPM Services shareholders will receive compensation representing the value of PPM that the company and its policyholders have built following PPM’s conversion to a stock company in 1996.

PPM policyholders will continue to receive the same focused anesthesia expertise and quality customer service, anesthesia-specific claims handing and risk management offerings from the existing PPM service team. Plus, PPM policyholders will benefit from access to products and services via the NORCAL Group of companies.

 

 

Q

Who is NORCAL?

A

Since its founding in 1975, NORCAL Mutual has been a policyholder-owned and physician-directed Medical Professional Liability company. For over 40 years, the company has been committed to offering innovative products and services at the lowest responsible cost, and has served as a staunch advocate for physicians’ rights and the practice of good medicine. NORCAL holds a financial strength rating of “A” (Excellent) from A.M. Best. The company currently has approximately $1.58 billion in assets, with surplus of $688 million and is one of the top ten Medical Professional Liability insurance carrier in the nation based on direct written premium. Visit www.norcal-group.com for detailed information.

 

 

Q

What happens next?

A

In the coming weeks, PPM Services shareholders will receive a detailed shareholder proposal fully describing the terms of the acquisition and merger, as well as a complete description of the economic benefit to PPM Services shareholders. The proposed merger will only occur with the support and affirmative vote of PPM Services shareholders. An affirmative vote by three-fourths of the shares entitled to vote is required to approve the proposed transaction.

Notice of a special election will be provided in the near future and shareholders will be asked to vote on the proposed merger. PPM currently anticipates the vote will occur sometime in early December, 2016. In addition, regulatory approvals must be obtained from both the Missouri and California Departments of Insurance.

 

 

Q

Will PPM continue to exist as a separate company?

A

Yes. PPM will continue to operate as an independent and separate company. PPM Services will become a wholly owned subsidiary of NORCAL Mutual. PPM will continue its focus and mission to serve the anesthesia community.

 

 

Q

Will PPM policyholders receive a new NORCAL policy?

A

No. PPM will continue to operate as it has for the past 29+ years and will continue to issue its own policies.

 

 

Q

Will I have a change in premium?

A

No. PPM premium rates will not change as a result of this transaction. As always, premium rates will continue to be evaluated upon renewal.

 

 

Q

How does this change my service or my PPM contacts?

A

The merger will not change in any way the service you receive from PPM, or your PPM service team. All of your claims, customer service, underwriting, risk management and sales contacts will remain as they are now. You will experience no change in the personalized service you have grown accustomed to receiving as a PPM insured.  

 

 

Q

Who do I contact for Risk Management, Claims or Underwriting questions?

A

The same individuals you currently contact.   Your team at PPM is not changing and will continue to provide the same level of service you have come to expect.

 

 

Q

Will this change the defense firms PPM has utilized previously?

A

No. PPM will continue to utilize strategic defense firms we have established relationships with in all jurisdictions where we insure anesthesiologists.

 

 

Q

Will PPM’s name change?

A

No. At this time we expect to continue to operate under the Preferred Physicians Medical (PPM) name.