This is an archived article that was published on sltrib.com in 2013, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Utah's largest medical malpractice insurer is being sold to a company in Minnesota in an estimated $142 million deal that will mean a windfall for its policyholders, thousands of doctors in Utah, Idaho, Wyoming and Montana.
The merger, announced in February, now needs only the approval of policyholders and it is expected to close at the end of June.
UMIA still claims 50 percent of the Utah market, according to the Utah Department of Insurance, but has lost some of its customer base as independent physicians hire on with large hospitals.
MMIC sells coverage for hospitals and long term care centers, not just policies for solo doctors, according to its web site.
An initial $20 million payment will be distributed within 10 days of the closing date. The rest will be doled out over five years as the final sale price adjusts to account for swings in reserves, Oslowski said at last month's hearing.
If the proceeds were divided evenly, and the price stayed close to $142 million, that would mean $49,000 per policyholder. But it's more complicated than that. Policyholders will be paid based on how much they contributed in insurance premiums between 2008 and 2012.
Coverage will be continued, but doctors will be free to shop around.
Malpractice insurance sale, by the numbers
50 percent • Utah Medical Insurance Association's current share of the Utah market
$142 million • Estimated size of acquisition by MAG Mutual Insurance Co.
10 states • MMIC's current footprint
2,900 • UMIA shareholders who will receive a share of the sales price