LOS ANGELES (AP) — The California Department of Insurance says the state’s biggest medical malpractice insurer only spent 10 percent of the $179 million it collects in premiums on lawsuits against doctors and other losses in 2009.
Insurance Commissioner Dave Jones says the low spending ratio at The Doctors Company and other insurers is a sign that the industry’s rates are too high and need to come down.
The state regulator called on insurance companies to lower rates in a statement Thursday, adding that his staff is going to examine rates of medical malpractice insurers.
Napa-based The Doctors Company insures more than 37 percent of the state’s doctors for malpractice.
(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)