my understanding from a PI lawyer is that physicians who are sued in excess of coverage declare bankruptcy.... my group's internal lawyer says most of the time things are settled far in advance and the max from your med mal is the most they'd go for.
this went to a jury so... no telling where they got the number. anyone know how Temple is insured?
It all depends. This is how it works usually. Lets say his medical malpractice coverage policy is for a max of $1 million. He lost a suit for $6 million.
Medical malpractice companies have something called a "consent to settlement clause" in the contract of the malpractice coverage. If there is a malpractice claim against a doctor, he has the right to sign or waive from signing the "consent to settle" with the insurance company. This is a tricky situation. It is almost like you are forced to sign this.
The "consent to settle clause", if signed, is basically saying the malpractice insurance company, with the assistance of your defense attorney, can agree to settle the case out of court without any of your input and can agree with the plaintiff's attorney to pay for an out of court settlement. Usually this is agreed to be done up to what your coverage is.
Malpractice insurance companies will let you know in advance that if you refuse to sign the "consent to settle" with them, and it goes to court, and you lose for MORE than your policy limit (say $1 million), then the doctor will be personally liable for the remainder of the settlement. This could involve bankruptcy or seizing of the assets of the doctor.....being forced to sell your home.....having future earnings seized to pay of the suit.....whatever.
However, if you sign the "consent to settle", and it goes to court and you lose for above the policy limit (say you lose a case for $6mil and your limit is $1mil), then your insurance company will cover the difference.
Advantages of signing the consent to settle is to avoid the above should you go to court and lose above your policy limit. Disadvantages of signing it are that the insurance company will likely try to settle out of court to avoid the chance of losing in court and anything settled out of court, still goes on your permanent record in the National Practitioners Data Bank. You may go and settle out of court even though you feel you did nothing wrong.
The advantage of not signing the "consent to settle" is that you can have your day in court if you feel you really did nothing wrong without the insurance company going and settling on its own. This disadvantage is if 12 idiots on a jury decide for the defendant for millions, you can be screwed financially.
So if this guy signed a "consent to settle", his insurance company still may have covered him over his limit. Why then did it go to court? Sometimes insurance companies and defense lawyers think they have a very defensible case and would rather it go to court than settling for a million dollars. You get to court and you lose. It happens.