The Program

The Physhield program is designed to provide medical professional liability coverage for physicians and their professional partnerships, associations or corporations who, individually or as a member of a group, have contracted to form a Phyhealth HMO or who operate a similar MCO, where the HMO or MCO is at least 25% owned and/or controlled by the physicians who provide medical care directly to patients. Coverage may be extended to their employees or other persons for whose acts or omissions the insured physician is legally responsible.

The HMO or MCO should demonstrate that the healthcare services delivered to its members are managed by physicians acting under the authorization of the HMO/MCO's board of directors and are effective as measured against standards generally accepted within the managed healthcare community. All insured physicians should possess the minimum credentials required by local regulations to contract with a licensed HMO or MCO.

Physhield seeks to insure physicians who demonstrate a strong ability to control and manage medical liability losses and loss exposures. All insured physicians should have a history that is absent of substantial and meritorious claims arising from medical malpractice.

Physhield writes medical professional liability insurance on a claims-made basis for qualifying physicians and surgeons in all specialties and their professional partnerships, associations or corporations in Florida and Texas with future expansion into all 50 states.

Physhield provides policy limits of $250,000 per occurrence and $750,000 in the aggregate for Florida physicians and $200,000 per occurrence and $600,000 in the aggregate for Texas physicians. Coverage for the costs of defense is outside of the policy limits.

Policies are issued for a twelve-month term renewable for successive twelve-month periods effective on the policy anniversary date at the rates and terms then in effect. Coverage under any policy is effective on the first of any month. The Company may issue retroactive ('nose') coverage in select instances and will offer 'tail' coverage to physicians discontinuing their Physhield coverage.

The program offers premium rates comparable to or better than Doctor's current rates and requires a one time initial capital contribution of 33% of mature premium thus enabling the Doctors to become owners and to share future underwriting and investment profits.

Administrative functions are performed by Phyhealth Underwriters, Inc.; Physhield's attorney in fact.