Menu
Don't miss out on this one-of-a-kind benefit offered only to our insureds.
One of the most unique benefits of being an insured with MPIE is the Subscriber Savings Account (SSA). The majority of medical professional liability insurance companies pay their profits to shareholders or stock owners who are often not involved in healthcare. MPIE’s unique insurance model allows eligible insured members to share in the financial rewards of the company’s success by putting profits into the SSA.
Share in the financial rewards of MPIE's profits
One of the most unique benefits of being an insured with MPIE is the Subscriber Savings Account (SSA). The majority of medical professional liability insurance companies pay their profits to shareholders or stock owners who are often not involved in healthcare. MPIE’s unique insurance model allows eligible insured members to share in the financial rewards of the company’s success by putting profits into the SSA.
SSAs are created for eligible insured members, and a portion of MPIE’s profits are allocated annually to these accounts. SSA funds become available after eight consecutive years insured with MPIE. Full SSA payout occurs upon permanent retirement from the practice of medicine, policy termination, or to beneficiaries upon an insured member’s death.
An Attorney in Fact represents the and is supervised by MPIE’s Board of Directors. The members of MPIE share in the profits and losses of the reciprocal exchange, according to a formula established by MPIE’s board members.
SSAs are the accounts that hold the allocated profits; each insured member has a subscriber account, into which a portion of profits is distributed based on the insured member’s premium and prior SSA balance. The SSA allocation changes every year, due to net income fluctuations and the board’s decision as to how much income to allocate to SSAs. Each insured member receives a 1099-DIV form when the monies have been allocated. The allocation is treated like dividends and must be declared as taxable income.
It is important to MPIE’s financial stability to maintain an adequate surplus ratio; SSA funds help MPIE achieve these satisfactory ratios. MPIE holds the SSA funds as part of the company’s total surplus
Physicians retire from practice and cash out without taxes
No tax is due at the time of distribution from the SSA account, since the tax liability is incurred at the time of allocation.
Michigan Professional Insurance Exchange is governed by physicians and hospitals (subscribers) and has always been governed by representatives of these hospitals and physicians. Governance and leadership provided by subscribers keep us focused on meeting the needs of our subscribers. As a subscriber governed company, MPIE focuses on understanding and meeting your needs and concerns because we share your values. The MPIE Board of Directors believe, and over 25 successful years validate, that the business plan of providing professional liability coverage to hospitals and physicians is the most effective model. Our model properly aligns motivations, which reduces costs and results in lower premiums for all subscribers.
Peer-to-peer accountability and support keeps premiums low and patient safety high.
Michigan Professional Insurance Exchange is organized as a reciprocal insurance exchange, which is an unincorporated association controlled by its members, who are called subscribers. In a reciprocal, subscribers exchange contracts to share risk among themselves. Each subscriber of the reciprocal is insured by each of the other subscribers. Subscribers control their insurance rates by monitoring their exposure to claims.