The board of the Trust, consisting of 15 local physicians of varying specialties, selects physicians to be added as members to the Trust based in part on their likelihood to produce claims for the Trust. When claims arise, the board handles them in conjunction with our attorney, Troy Crotts, of the law firm Bush Ross.
The Trust's philosophy is to settle claims quickly if they have merit and where an actual injury has occurred. In situations without basis or frivolous lawsuits, the Trust launches a vigorous defense to protect the physician's reputation. The Trust has primarily used two attorneys since the inception of the Trust, and has prevailed in almost all of cases that have gone to trial.
Administrators of the Trust since its inception have been William P. Wallace or Andrew L. Wallace. The current manager of the Trust, Andrew Wallace, is a graduate of Florida State University's College of Business, with a B.S. in Risk Management and Insurance.
The founder of the Trust was Andrew Wallace's father, William P. Wallace, who retired in 1992. Andrew Wallace's grandfather, John Wallace, was also in the insurance business in St. Petersburg.
The future of health care in America is certainly changing. For the Trust to continue to be successful, our members must continue to provide the best health care available. It is our desire at the Trust Management Company, to continue to provide superior service to all Trust members in a way that will benefit the individual members and society as a whole.
The Trust is structured to self-insure $250,000 for any one patient. Beyond this, limits are offered up to $1-million for each patient, with reinsurance provided by the General Reinsurance Corp, one of the best rated reinsurance companies, with an A++ rating.
Included in the Trusts' premium is coverage for most Licensing Agency investigations.
The coverage written by the Trust policy is claims-made coverage, which means we can cover things that occurred before you were a member of the Trust, but have not yet been reported to you as a claim. The Trust provides either fully pre-funded tail coverage or the cost is spread evenly over 5 years at the $250,000 per claim and $750,000 aggregate level. The choice is up to the physician or group which they join. Rates on the tail coverage can change, so the cost could increase and will if a claim is paid on a physician’s behalf. Tail coverage above the 250/750 level may be purchased or could be free in the case of death disability or retirement after 5 years of having the excess coverage.
The Trust provides the purest form of insurance that there is. There is no need for profit to be built into our rates, as all moneys collected by the fund that are not used in the payment of claims or expenses are returned to member physicians.
The Trust seeks to offer the lowest premium over the long term to all of our members.
Our Trust is able to offer competitively priced insurance to its member physicians due to our underwriting of new members, claims philosophy, and low expenses. The Trust seeks to offer the lowest premium over the long term to all of our members. Part of the reason for the low overhead is there is no middle-man. The Trust is operated by South Pinellas Management Company which sells the policies. Thanks to careful management, the Trust's expenses have averaged less than 17% of premiums paid. This compares favorably to the average expense factor for an insurance company of over 25%. That means that on average at other insurance companies, only 75% of the funds collected are available for the payment of claims. In the case of the Trust, with expenses of less than 17%, more than 83% of premiums collected are available to pay claims or to be returned to member physicians.
The Trust is also intensely local, operated by physicians for physicians in Pinellas County. While other companies pull in and out of Florida, writing professional liability insurance like they do homeowners insurance, the Trust will be here for physicians as long as the physicians want the Trust to exist for their benefit.