The Tribute Plan: Frequently Asked Questions

Introduced in 2007, the Tribute® Plan is a breakthrough financial benefit that rewards eligible members for their loyalty to The Doctors Company and for their commitment to superior patient care. The Doctors Company sets aside funds in a “loyalty pool” for eligible members, and those members receive a membership award when they meet the Tribute Plan criteria at retirement.

Since inception, the Tribute Plan has awarded over $5 million to retiring physicians. Members who have qualified for a distribution when they retire already have over $262 million in their Tribute accounts.

Q: I have been a member of The Doctors Company since the beginning of the Tribute Plan in 2007. What have the annual funding percentages been?
A: When the Tribute Plan was launched in 2007, it was projected that you would receive a Tribute contribution equal to approximately 10 percent of your annual premium each year. The actual percentages added to your Tribute balance for 2007 to 2010 were as follows:

Approved funding for 2011 to 2012 is as follows:

Q: What level of Tribute funding will occur beyond 2012?
A: We anticipate that after 2012, you will receive a Tribute contribution of approximately 10 percent of your eligible premium added to your Tribute balance each year.

Q: What additional benefits come with being a member of The Doctors Company?
A: As a physician-founded, physician-owned, and physician-led organization, we consider you to be a member of The Doctors Company, not merely a policyholder. As a member, you enjoy tangible benefits, including:

• The Tribute Plan
• The potential for dividend distributions
• CyberGuard® cyber liability protection and MediGuard® regulatory risk coverage
• Industry-leading patient safety programs
• A wide array of tools and support designed to strengthen your practice and make practicing medicine more rewarding

Q: Why did The Doctors Company create the Tribute Plan?
A: The Doctors Company is focused on being accountable to you and your fellow members—unlike commercial insurance companies focused on rewarding their outside stockholders or countless other insurance companies that view you as an anonymous policyholder. As an organization founded by doctors for doctors, we’re on a mission to advance, protect, and reward the practice of good medicine. The Doctors Company created the Tribute Plan as the best way to support our mission and reward our members. This benefit is based upon the fundamental principle that by working together to promote patient safety and keep claims low, we all win. It is a long-term commitment to you and your practice and to changing our profession for the better.

Q: What is the Tribute Plan loyalty pool?
A: The loyalty pool is a specific allocation of funds that the Board of Governors sets aside for the express purpose of rewarding members for advancing the practice of good medicine throughout their careers.

Q: How does The Doctors Company determine how much to set aside in the loyalty pool each year?
A: The Board of Governors determines the amount of funds to be allocated to the Tribute Plan loyalty pool for each year. Funding is based on factors such as The Doctors Company’s financial health and capital requirements.

Q: How can The Doctors Company afford to offer me a program like this?
A: The Doctors Company has a long history of fiscal conservatism. Our strict underwriting guidelines and long-term member retention have created a robust organization with results that benefit our superior membership. The strong financial position of The Doctors Company allows us to create a program to reward our members without jeopardizing our ability to pay claims and protect our members.

Q: How long will the Tribute Plan run?
A: While no organization can guarantee that a program will run in perpetuity, the Tribute Plan is intended to be a permanent benefit for members of The Doctors Company. The Doctors Company has been protecting physicians since 1976 and is financially one of the strongest companies in the medical malpractice insurance industry. The Doctors Company exists to provide the best service to its members, and the Tribute Plan exemplifies our long-term commitment to our members and our mission.

Q: Will the Tribute Plan increase my premium?
A: No, it will not increase your current or future premiums in any way. The Tribute Plan is an added member benefit that provides a financial reward for a member’s commitment to The Doctors Company and to advancing the practice of good medicine. As a member of The Doctors Company, you will continue to enjoy tangible benefits, including the potential for dividend distributions, industry-leading patient safety programs, and a wide array of tools and support designed to strengthen your practice and make practicing medicine more rewarding.

Q: Why not lower premiums instead of creating the Tribute Plan?
A: The Tribute Plan adds value to our already highly competitive medical liability program. Our premium rates are carefully developed to ensure we can aggressively defend each of our members. With jury awards continuing to climb, premiums provide a sufficient level of capital in the event claim costs exceed our estimates. The Doctors Company maintains this capital for your financial security.

Q: Does the Tribute Plan impact the potential for dividends?
A: No. The Tribute Plan has been created as an added member benefit to provide a financial reward for a member’s long-term commitment to The Doctors Company and to advancing the practice of good medicine. This benefit will not impact The Doctors Company’s ongoing dividend program, which returns premiums to members for better-than-expected loss experience.

Q: How do I receive my Tribute Plan balance?
A: To receive your award balance, you must permanently retire at age 55 or older with at least five years of continuous coverage with The Doctors Company. Your award balance will also be distributed in the event that you die or become permanently disabled while insured by The Doctors Company.

Q: Where can I learn more about the Tribute Plan?
A: You can contact your agent or the Tribute Team at (888) 771-1076 or Underwriting-TributeTeam@thedoctors.com. 

Eligibility for the Tribute Plan

Q: Who is eligible to receive an award in the Tribute Plan?
A: An eligible member is an individual listed as a “Named Insured” on a medical liability insurance policy issued by The Doctors Company and in force on or after January 1, 2007. Certain Named Insureds, such as entities and ancillaries, are excluded. Please contact your agent or refer to the Tribute Plan Summary for specific details.

Q: Am I eligible to receive a Tribute Plan award if I am a former First Professionals Insurance Company, Inc., insured?
A: As a First Professionals insured, you will be eligible to participate in the Tribute Plan once you become a member of The Doctors Company. This will occur when your policy renews as a policy issued by The Doctors Company. Your years of continuous First Professionals coverage will count toward years of The Doctors Company coverage for the purposes of determining your Tribute Plan eligibility. When you renew on a policy issued by The Doctors Company, you will begin receiving Tribute allocations, including a credit for any premiums under your 2012 First Professionals policy.

Q: Am I eligible to receive a Tribute Plan award if I am a former Anesthesiologists Professional Assurance Company (APAC) insured? 
A: As an APAC insured, you will be eligible to participate in the Tribute Plan once you become a member of The Doctors Company. This will occur when your policy renews as a policy issued by The Doctors Company. Your years of continuous APAC coverage will count toward years of The Doctors Company coverage for the purposes of determining your Tribute Plan eligibility. When you renew on a policy issued by The Doctors Company, you will begin receiving Tribute allocations, including a credit for any premiums under your 2012 APAC policy.

Q: Am I eligible to receive a Tribute Plan award if I am a former Advocate, MD Insurance of the Southwest, Inc., insured? 
A: As an Advocate, MD insured, you will be eligible to participate in the Tribute Plan once you become a member of The Doctors Company. This will occur when your policy renews as a policy issued by The Doctors Company. Your years of continuous Advocate, MD coverage will count toward years of The Doctors Company coverage for the purposes of determining your Tribute Plan eligibility. When you renew on a policy issued by The Doctors Company, you will begin receiving Tribute allocations, including a credit for any premiums under your 2012 Advocate, MD policy.

Q: Am I eligible to receive a Tribute Plan award if I am a former Intermed Insurance Company insured? 
A: As an Intermed insured, you will be eligible to participate in the Tribute Plan once you become a member of The Doctors Company. This will occur when your policy renews as a policy issued by The Doctors Company. Your years of continuous Intermed coverage will count toward years of The Doctors Company coverage for the purposes of determining your Tribute Plan eligibility. When you renew on a policy issued by The Doctors Company, you will begin receiving Tribute allocations, including a credit for any premiums under your 2012 Intermed policy.

Q: Am I eligible to receive a Tribute Plan award if I am a former American Physicians Assurance Corporation (APA) member?
A: Former APA insureds begin participating in Tribute at the time they renew their policy with The Doctors Company. Years of continuous APA coverage count toward the Tribute distribution eligibility requirement of five years. If you meet the Tribute distribution criteria after your policy renews with The Doctors Company, you are eligible to receive a Tribute payment. If you retire, become permanently disabled, or die prior to renewing with The Doctors Company, you are not eligible to receive a Tribute distribution. Once your policy is renewed with The Doctors Company, you receive Tribute funding.

Q: Am I eligible to receive a Tribute Plan award if I am a former SCPIE Companies member?
A: Former SCPIE insureds begin participating in Tribute at the time they renew their policy with The Doctors Company. Years of continuous SCPIE coverage count toward the Tribute distribution eligibility requirement of five years. If you meet the Tribute distribution criteria after your policy renews with The Doctors Company, you are eligible to receive a Tribute payment. If you retire, become permanently disabled, or die prior to renewing with The Doctors Company, you are not eligible to receive a Tribute distribution. Once your policy is renewed with The Doctors Company, you receive Tribute funding.

Q: Am I eligible to receive a Tribute Plan award if I am a former Northwest Physicians Insurance Company (NPIC) member?
A: Former NPIC insureds begin participating in Tribute at the time they renew their policy with The Doctors Company. Years of continuous NPIC coverage beginning January 1, 2006, count toward the Tribute distribution eligibility requirement of five years. If you meet the Tribute distribution criteria after your policy renews with The Doctors Company, you are eligible to receive a Tribute payment. If you retire, become permanently disabled, or die prior to renewing with The Doctors Company, you are not eligible to receive a Tribute distribution.

Q: Am I eligible to receive a Tribute Plan award if I am a former OHIC member?
A: Former OHIC insureds begin participating in Tribute and receiving years of continuous coverage credit (for purposes of meeting the Tribute distribution eligibility of five years) at the time they renew their policy with The Doctors Company. If you meet the Tribute distribution criteria after your policy renews with The Doctors Company, you are eligible to receive a Tribute payment. If you retire, become permanently disabled, or die prior to renewing with The Doctors Company, you are not eligible to receive a Tribute distribution. Once your policy is renewed with The Doctors Company, you receive Tribute funding.

Q: Am I eligible to participate if I am a part-time physician?
A: Yes.

Q: Am I eligible to participate if I’m insured with PULIC?
A: No. The Tribute Plan is available only to members who have coverage issued by The Doctors Company. However, a former member who rejoins The Doctors Company after obtaining coverage with PULIC (with no gaps in coverage) will have his or her Tribute Plan balance and years-of-continuous-coverage credit reinstated.

Q: If I suspend my coverage, will my participation in the Tribute Plan be affected?
A: You will not receive additional contributions while your policy is suspended, and your suspension period will not count toward the distribution requirement of five years of continuous coverage. When you reinstate your policy, your share of the loyalty pool will be adjusted to account for the suspension period.

Q: What if I leave The Doctors Company but return again in the future?
A: If you leave The Doctors Company for reasons other than death, permanent disability, or permanent retirement, your Tribute Plan balance is forfeited. If you obtain coverage from The Doctors Company at a future time, your balance and years-of-continuous-coverage credit start over. However, if you leave The Doctors Company to join a non-The Doctors Company insured group and return to The Doctors Company within 12 months, your Tribute balance and years of continuous coverage will be reinstated. If you suspend and then reinstate your coverage, your share of the loyalty pool will be adjusted to account for the suspension, and your suspension period will not count toward the years-of-continuous-coverage requirement. A former member who rejoins The Doctors Company after obtaining coverage with PULIC (with no gaps in coverage) will have his or her Tribute Plan balance and years-of-continuous-coverage credit reinstated.

Q: What if my medical corporation and I are both listed as Named Insureds?
A: The Tribute Plan award applies solely to you, the individual member. Entities like medical corporations do not participate in the Tribute Plan.

Q: Where can I learn more about eligibility for the Tribute Plan?
A: You can contact your agent or the Tribute Team at (888) 771-1076 or Underwriting-TributeTeam@thedoctors.com.

About my Tribute Plan balance

Q: How do I know what my Tribute Plan balance is?
A: You can see your award balance at any time by signing in to access your member information. You will also see your current balance and your estimated balance in five years on special Tribute Plan statements, which we mail quarterly, and with your annual renewal premium statement.

Q: How is my balance determined?
A: The allocation The Doctors Company makes from the loyalty pool to your individual Tribute Plan balance is based on your premium.

Q: Does my claims experience affect my award?
A: No. However, because this benefit is based upon a commitment to outstanding patient care throughout one’s career, a member with very poor claims experience could be subject to nonrenewal based on The Doctors Company’s normal underwriting criteria. Nonrenewal would cause loss of the member’s Tribute Plan balance.

Q: If The Doctors Company nonrenews me, am I still entitled to my Tribute Plan award balance?
A: Any decision to nonrenew a policy would be based upon The Doctors Company’s strict underwriting guidelines. If you are nonrenewed by The Doctors Company at any time, you will lose your Tribute Plan balance and no longer participate in the plan.

Q: How does my award balance accumulate value?
A: Allocations to your individual Tribute Plan balance from the loyalty pool will be made each year upon renewal of your policy based on the amount of your premium times the annual Tribute funding percentage approved by the Board of Governors. The funding percentage amount is based on factors such as The Doctors Company’s financial health and capital requirements.

Q: Does my balance earn interest?
A: No. However, your Tribute Plan balance will grow through annual funding declarations authorized by The Doctors Company’s Board of Governors.

Q: When can I access my Tribute Plan award balance?
A: You will receive your balance when you meet the distribution requirements—permanent retirement at age 55 or older with at least five years of continuous coverage with The Doctors Company. Your award balance will also be distributed in the event that you die or become permanently disabled while insured by The Doctors Company.

Q: Is my award balance guaranteed?
A: The Doctors Company is financially among the strongest medical malpractice insurers. With $4 billion in assets and $1.3 billion in member surplus, The Doctors Company has a long history of fiscal conservatism and meeting all of its financial commitments. Your Tribute Plan balance is one of these commitments. While your balance is not legally “guaranteed,” the obligation is supported by the firm commitment of the Board of Governors and the substantial capital of The Doctors Company, an insurer that is rated A (Excellent) by A.M. Best Company and A (Strong) by Fitch Ratings.

Q: Where can I learn more about my Tribute Plan balance?
A: You can contact your agent or the Tribute Team at (888) 771-1076 or Underwriting-TributeTeam@thedoctors.com. You can also view your balance by signing in to access your member information.

Receiving my Tribute Plan balance

Q: What are the requirements for receiving a Tribute Plan balance?
A: To be eligible to receive your award balance, you must:

• Be age 55 or older
• Retire permanently from medicine
• Have five or more years of continuous coverage with The Doctors Company on the day you retire

Members who were previously insured by a company acquired by The Doctors Company should refer to the “Eligibility for the Tribute Plan” section.

Your award balance will also be distributed in the event that you die or become permanently disabled while insured by The Doctors Company.

To receive your award balance upon retirement, you will be required to sign a statement that you are permanently retiring.

Q: What does it mean to retire permanently?
A: To be considered permanently retired, you must completely retire from the practice of medicine; however, you can still perform voluntary medical services and limited locum tenens work.

Q: When does my “five years of continuous coverage” begin?
A: Your years-of-continuous-coverage period began on the first date you became insured with The Doctors Company. For additional information about how your coverage period is affected by policy suspension, leaving The Doctors Company, or being previously insured by an acquired company, see the “Eligibility for the Tribute Plan” section.

Q: How will I receive my balance?
A: If you qualify, your Tribute Plan award is paid in a single lump-sum payment after you meet the distribution requirements. Generally, you should receive your Tribute check within 90 days of completing the required documentation.

Q: Why does The Doctors Company’s Board of Governors need to approve Tribute Plan awards?
A: It is essential that The Doctors Company have the necessary financial strength to aggressively defend claims, support its ongoing operations, and meet regulatory capital requirements—which is why The Doctors Company’s Board of Governors approves Tribute Plan awards. Only in the unlikely situation of the company’s severe financial weakness would the board potentially delay or withhold approval of pending awards.

Q: Can I withdraw my Tribute Plan balance before I retire?
A: No. You may receive your balance only upon meeting the distribution criteria, which require you to be age 55 or older, permanently retire from the practice of medicine, and have five or more years of continuous coverage with The Doctors Company on the day you retire. Your award balance will also be distributed in the event that you die or become permanently disabled while insured by The Doctors Company.

Q: Can I choose to receive my Tribute Plan award at a later date?
A: Your award balance will be paid to you after you meet the distribution requirements, pending approval by The Doctors Company’s board. You have the option to defer your award payment for a period of up to 12 months subsequent to your retirement date by submitting a written request to The Doctors Company once you retire.

Q: Can I choose to receive my award over a period of time?
A: No. Awards are paid only in a single lump-sum.

Q: How much can I expect to receive if I retire at age 65?
A: Your Tribute Plan payout depends on how many years you participate in the plan and on your premium. You can estimate your Tribute Plan payout at retirement with our iTribute® Plan Calculator.

Q: What happens if I die before receiving my award?
A: If you have submitted a beneficiary designation form (PDF), your balance will be paid to your designated beneficiary(ies). Otherwise, your balance in this circumstance would be paid to your estate.

Q: What happens if I get a divorce before receiving my award?
A: You should consult your personal attorney to determine the appropriate treatment of the award.

Q: I purchased retroactive (prior acts) coverage when I started my policy with The Doctors Company. Does my retroactive coverage count toward the Tribute Plan requirement of five years of continuous coverage?
A: No. Your years-of-continuous-coverage period begins on the first day of coverage with The Doctors Company, excluding any retroactive coverage period.

Q: What are the tax consequences of receiving my Tribute Plan award?
A: You will receive a Form 1099-Misc for the calendar year in which your award is paid. You should consult your personal tax adviser to determine the appropriate treatment on your tax return.

About group members

Q: I’m a member of a group. Does the group get the Tribute Plan award or do I?
A: This is a decision that you and your group will make together. Balances are maintained at the individual level, so you receive the Tribute Plan award. However, you may assign some or all of your balance to your group after you become entitled to it, and The Doctors Company will pay the assigned amount directly to your group.

Q: If I leave my group, how is my participation in the Tribute Plan affected?
A: If you leave your current group for a new group or practice that is insured by The Doctors Company, your balance and years-of-continuous-coverage credit will remain intact and continue to accumulate in your name. If you leave The Doctors Company to join a non-The Doctors Company insured group and return to The Doctors Company within 12 months, your Tribute balance and years of continuous coverage will be reinstated. Otherwise, your balance will be forfeited.