Florida's New Tort Reform Law Delivers Unintended Consequence; GE Medical Protective is Unable to Renew Physicians Whose Policies Expire January, 2004.

Business Editors/Health/Medical Writers

FORT WAYNE, Ind.--(BUSINESS WIRE)--Oct. 3, 2003

GE Commercial Insurance's Medical Protective (MedPro) announced today it has regretfully been forced to issue non-renewal notices to physicians whose medical malpractice insurance policies expire in January 2004.

MedPro had filed for a rate increase more than two months before the Florida legislature passed its recent tort reform measure, but that rate filing had not been approved prior to the passage of the new legislation. This new law mandated a rate freeze, which required MedPro to withdraw its rate filing. MedPro is unable to resubmit its request for new rates until Florida's Office of Insurance Regulation (OIR) calculates its "presumed rate factor," which could be as late as mid-November. Unfortunately, Florida's insurance regulations require 60 days notice of any price increase to policyholders. Given this time frame it is impossible for MedPro to create a new rate filing in time for its January 1, 2004 renewal policies.

"MedPro remains strongly committed to the State of Florida and its health care providers," said Timothy Kenesey, President and Chief Executive Officer of MedPro. "However, we cannot write business today at rates that are inadequate, or worse, unknown to us. Our ability to charge the right rates for our coverage has allowed us to provide peace of mind to physicians for more than 100 years. We owe it to all of our policyholders to ensure we are charging adequate rates in every state where we do business so we can be here for the next 100 years."

"Florida's legislators and its insurance regulators understand our concerns, and we are working with them to devise an acceptable solution to this problem," said William Daley, Executive Vice President and Chief Counsel of MedPro. "We plan to file new rates as soon as possible and hope to have approval to use those rates prior to our physicians' renewal dates in January."

About GE Medical Protective

With more than $560 million in annual premium and $1.7 billion in assets, MedPro is a national leader in primary medical malpractice coverage and risk solutions for physicians and dentists. As the nation's first provider of medical malpractice insurance, MedPro has been protecting the assets and reputations of physicians, dentists and other primary providers of health care for over 100 years. Its offerings include claims-made and occurrence coverage, risk management consulting and education. Through its affiliates and partners, MedPro can also offer a comprehensive portfolio of financial products and services for its physicians and dentists. 90,000 physicians, dentists and health care professionals now rely on the financial strength, innovative products and services, and claims handling expertise offered by MedPro. Medical professional liability insurance products are underwritten by The Medical Protective Company, rated A (Excellent) by A.M. Best and AA- (Very Strong) by Standard & Poor's and are distributed through a nationwide network of market managers and appointed distribution partners. MedPro is a member of the GE Commercial Insurance family of companies.

For more information, visit the GE Medical Protective web site at www.GEMedicalProtective.com.