Doc Accuses Malpractice Insurance Exchange Of Fraud

Law360, New York (March 7, 2013, 7:01 PM EST) -- A New Jersey doctor has launched a proposed class action against a physician-owned medical malpractice insurer, contending the unincorporated insurance exchange restrained competition by preventing insureds from switching providers and made unauthorized charges on her checking account.

To discourage insureds from leaving, Conventus Inter-Insurance Exchange allegedly makes the provision of "tail" coverage hinge on the full payment of outstanding capital contributions, without prior notice, according to the Feb. 25 complaint in Middlesex County Superior Court. Tail coverage provides protection for claims that stem from incidents that...
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