“Ask eQuoteMD, with Tim Ryan.” A medical malpractice insurance video blog question and answer session to help physicians have a better understanding of their coverage options. eQuoteMD provides quality solutions for medical malpractice insurance to doctors, surgeons, clinics, hospitals and facilities across the United States.
Video Transcript –
Tim Ryan: Hello and welcome to eQuoteMD’s medical malpractice insurance video blog. I’m Tim Ryan and I’m here to answer your MMI questions. Recently, I was asked to explain the difference between a quote, or indication, and a bindable quote. Now, I will be the first one to admit that in the insurance field there’s a lot of jargon and if you don’t quite understand the nuances it can be very difficult to comprehend exactly what your broker or your insurance company is talking about. So, I would like to spend a couple of minutes with you today to explain the differences between these two terms.
Now, a quote or indication is generally what a doctor is looking for as he/she is shopping the market to find the best premium price or the best policies. The quote, or indication, is essentially the insurance company’s best guess as to how much it is going to cost to insure a doctor. This quote or indication can basically be given after a few essential pieces of information are given to the medical malpractice insurance company.
These pieces of information basically boil down to three main topics:
- First – What specialty does the doctor practice?
- Second – What location is the doctors medical practice in?
- Third – Does the doctor have any claims history in the last 5 or 10 years?
This basic set of information is going to allow the insurance company to issue a quote. However, in certain scenarios additional information is needed. For example, if you are an OB/GYN, insurance companies will generally want to know how many deliveries you do in a given period of time; as this will have an affect on your premiums.
Once the quote has been given, and an insurance company has been selected, a doctor can get a bindable quote by providing a full submission to the insurance company. A full submission consists of a completed application and loss history being sent to the insurance company. Loss history is essentially a doctor’s record of claims that have been brought or not brought in the last five to ten years. Once this loss history and application has been given to the medical malpractice insurance company, and has been reviewed by the medical malpractice insurance company, the doctor will then be issued a bindable quote. This bindable quote is the insurance companies offering to the doctor, officially, where the doctor can say he/she wants to purchase a policy and the insurance company is then obligated to give the doctor a policy for that price.
So, again that is the difference between a regular quote or an indication and a bindable quote. A quote is just a best guess. A bindable quote is the final offer from the insurance company. Again, I’m Tim Ryan here to answer any of your medical malpractice insurance questions. Have a great day!
If you would like to have one of your questions answered by Tim Ryan, please follow @eQuoteMD on Twitter and send us a “tweet” with your question. You can follow Tim Ryan on Twitter as well @TheMedMalMan.
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