The conversion of the Medical Liability Mutual Insurance Company (MLMIC) in New York from a mutual to a stock insurance company has given rise to an abundance of dispute resolution. As part of the demutualization process, MLMIC calculated and planned to issue payments to “eligible policyholders,” reflecting the equity in MLMIC.
The process of returning MLMIC’s equity was convoluted from the start but has become even more so as decision-makers struggle with one question: should payments be remitted to the named insured on the MLMIC policy (the medical provider) or to the insured’s employers (the medical practice)?
