HAPI was formed in 1977 after passage of enabling legislation
by the State of Hawaii. HAPI is an inter-indemnity cooperative, made up of
physicians and surgeons practicing in the State of Hawaii. HAPI is modeled
after California's Cooperative of American Physicians/Mutual Protection Trust
The Physicians' Indemnity Plan (PIP) is the means by which HAPI offers medical malpractice coverage to its members. PIP is owned and controlled by HAPI member doctors.
HAPI is designed so that the member physicians share financial
responsibility for the professional liability claims of other members. By
sharing this responsibility, the members are able to eliminate many of the
costs associated with traditional insurance, such as profit margins, excess
overhead and sales commissions. HAPI members pay only for the true cost of
their professional liability coverage (such as administration, claim defense,
settlements, judgments and reinsurance). The savings are passed on to the
Member physicians are involved in all phases of the organization,
ranging from approval of new members, voting on changes in coverage, working
on claim's management issues and educational loss prevention initiatives.
HAPI's Organizational Structure consists
of a Board of Trustees,
a Peer Review Committee, a Claims
Review Committee, an Investment Committee and a Marketing Committee.
The organization also has a full-time Executive Vice President and support
staff that oversee all aspects of the program and the day to day operations.