When a claims-made policy is terminated, coverage stops. Insureds are required by Pennsylvania law to secure coverage for claims reported after cancellation of their claims-made policy. This mandatory coverage can be obtained in the form of a reporting endorsement — sometimes referred to as “tail” coverage — obtained from PMSLIC, or prior acts coverage, obtained from the new carrier:

• Continuation of practice: Insureds who continue to practice can either purchase a tail from PMSLIC or secure prior acts coverage from another carrier. Be aware that prior acts coverage keeps claims-made coverage in force by transferring the risk from one company to another. It is usually offered at no additional cost by rating for the appropriate claims-made year with the new carrier.
• Retirement: The PMSLIC premium for the reporting endorsement will be waived for an insured who completely retires from the practice of medicine at age 50 or older with one year of continuous PMSLIC coverage and a retro date of at least 48 months preceding retirement. Please note there may be a charge for the MCARE portion of the reporting endorsement.
• Death or disability: PMSLIC does not charge for the tail if the insured dies or becomes permanently and totally disabled while the policy is in force.

PMSLIC is required to offer tail coverage for a period of 60 days following termination of coverage provided payment terms are met by the insured. The tail must be paid in a lump sum payment.

If the policy is terminated during the first year, the reporting endorsement premium will be pro-rated. For terminations during subsequent policy years, the applicable reporting endorsement factor will be based on the exposure.

Reporting Endorsement Factors*

* Factors are subject to change based on company experience and
 Pennsylvania Insurance Department prior approval.