| TMLT
Declares a 20% Dividend for Renewing Policyholders
The Board of Governors of Texas Medical Liability Trust (TMLT) has declared a 20% dividend amounting to approximately $35 million for 2006 effective January 1, 2007 for renewing TMLT policyholders. Dividends will be credited to each policyholder’s premium as a lump sum when his or her policy renews in 2007.
In addition, the Trust will be reducing rates 7.5% for all specialties across the state beginning January 1, 2007. Current TMLT policyholders will receive this rate decrease when their policy renews.
TMLT has now reduced annual rates four times since the passage of House Bill 4 and Proposition 12—12% in 2004; 5% in 2005; 5% in 2006; and now 7.5% in 2007, a total of 29.5% in four years. By the end of 2007, TMLT’s rate reductions, since 2004 will amount to nearly $139 million and returned dividends of 25% will amount to nearly $45 million. Since the passage of Prop 12 and medical liability reform of 2003, TMLT policyholders will have realized cumulative savings of over $180 million.
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