AAOIC New Graduate Information

 

The AAO endorsed Professional Liability Plan has been the most popular insurance product purchased by new graduates for the last seven years.   On average, over 70% of the eligible new graduates have purchased the AAO malpractice plan since 2000. In fact, 70% of the eligible post-graduate residents in 2009 enrolled in the AAO plan at time of graduation. Why? The reasons are simple.

First, the AAO endorsed Professional Liability Plan is a comprehensive product including all of the following:

• Malpractice liability limits up to $5,000,000
• No deductibles or shared costs to pay if you are sued
• Defense costs are paid at 100% “outside” the policy limits
• Your corporation is covered at a shared limit at no cost 
• The actions of your employees are covered at no additional charge unless an exclusion applies within the policy
• Both occurrence and claims-made policy forms are offered

Second, the price is right. Depending on your practice location, your first year’s premium for the most common limits of liability ($1,000,000 / $3,000,000) could be as low as $150 right out of school.  This is because new graduates receive significant discounts if the AAO endorsed plan is purchased as your first malpractice coverage after graduation.  Outlined below are the premium discount percentages for a new graduate if you qualify:

                        Claims Made Policy           Occurrence Policy

                        New Grad. Discounts        New Grad. Discounts

 

First Year                     50% off                         25% off

Second                        25% off                         15% off

Third                           10% off                           5% off

Premium rates differ in every state.  If you have multiple orthodontists in your office (partnership or corporation), each doctor must maintain their own malpractice policy.

 

Third, the AAO Insurance Company (AAOIC), a risk retention group, underwrites the plan.  Although the AAO has endorsed a malpractice plan since 1987, the AAOIC was formed in 1995 to be the exclusive insurance company for the AAO endorsed malpractice plan for members only.  This opportunity existed only because of the strong affinity ties to the Association and the high participation among members who join the plan.  Every member that enrolls in the Professional Liability Plan becomes a shareholder of AAOIC through a very small and reasonably priced stock purchase.

 

Fourth, your claims are reviewed by experts.  Any claims you submit will be reviewed by a Claims Committee composed of your own peers – experienced orthodontists.  They, like you, intimately understand and appreciate the specific nuances of orthodontic practices.

 

The company is managed by orthodontists with help from some of the best insurance specialists in the country.  Since this is an AAO members only plan, only orthodontic specialists are eligible to apply.  This is a distinct advantage to you as higher risk dental specialists and in turn higher risk procedures are excluded from the plan.

 

Last, but certainty not least, is a number of very important advantages to members enrolled in the AAOIC Plan.

• Plan features are designed exclusively for AAO members
• Experienced legal counsel  – litigation specialists in legal defense for orthodontists
• All claims are reviewed by your Orthodontic colleagues
• Largest writer of malpractice insurance for AAO members in the United States

The AAOIC Plan Administration office can provide you with a personal quotation simply by calling 1-800-622-0344.  The Professional Liability specialist will discuss whether the occurrence or claims made policy form is best for you depending on your practice needs.  There may be other discounts available to you or special limits of coverage that may be necessary depending on practice location.  Rest assured that the AAOIC can provide for all your malpractice insurance needs and the Plan Administration Office is here to help.