What is the Deposit used for?

• All members pay a deposit appropriate to their risk class. The annual installments are placed in a trust fund that is currently administered jointly by First Hawaiian Bank and HAPI’s Physicians’ Indemnity Plan. The income earned by the fund is used to pay defense costs, medical malpractice claims and operating expenses.

Do I have to pay my entire deposit, all at once in a lump sum?

• No.  You can pay your deposit over a 10 year period in increments of 10% each year. In this manner, the deposit becomes a small part of your total cost and the PIP agreement allows for a refund of the deposit under certain circumstances.

• If you are in your first year of private practice after completing a residency, fellowship or military commitment, you pay only 5% of the deposit the first two years and 10% during the next 9 years.

Does HAPI charge interest on the 10 year deposit installment plan?

• No. We do not charge our members interest on their payments.

Is the deposit tax deductible?

• Yes. Current tax laws allow for the deduction under most circumstances as a business expense. Consult your tax advisor for advice.

What will my total cost include after I have paid off my deposit?

• Your total cost will be significantly reduced as you will only pay for dues and assessments.

What happens to my deposit if I die?

• HAPI/PIP will refund the amount of the deposit paid by you to your estate or designated beneficiary.

I’ve been paying my deposit annual installments for the  past 6 years, now I must cancel my coverage.  Am I still responsible for the deposit?

• Yes. You must continue to pay for your deposit until it is fully paid. You would have four more annual installments.