Frequently Asked Questions
Cost
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What is HAPI/PIP's cost structure based upon?
The following three variables, when combined, make up total cost:
Total Cost = Refundable Deposit + Dues + Assessments
There is no profit motive in HAPI/PIP's cost structure
How do I know how much to pay for my deposits, dues and assessments?
Your risk class determines the amount of your deposit and dues. Your years of membership, along with your risk class determines the amount of your assessment. I have been in practice for 10 years and have been covered for medical liability coverage during this entire time. I want coverage with HAPI/PIP to include prior acts coverage.
How much will it cost?
HAPI's cost structure fully matures in the 3rd year. If you are granted retroactive coverage, you will pay our 3rd year rate and be covered fully for prior acts for the preceding 10 years in an amount not to exceed your prior coverage or the HAPI/PIP maximum offered coverage.
The following three variables, when combined, make up total cost:
Total Cost = Refundable Deposit + Dues + Assessments
There is no profit motive in HAPI/PIP's cost structure
How do I know how much to pay for my deposits, dues and assessments?
Your risk class determines the amount of your deposit and dues. Your years of membership, along with your risk class determines the amount of your assessment. I have been in practice for 10 years and have been covered for medical liability coverage during this entire time. I want coverage with HAPI/PIP to include prior acts coverage.
How much will it cost?
HAPI's cost structure fully matures in the 3rd year. If you are granted retroactive coverage, you will pay our 3rd year rate and be covered fully for prior acts for the preceding 10 years in an amount not to exceed your prior coverage or the HAPI/PIP maximum offered coverage.
Deposit
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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
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
Dues |
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What are the membership dues used for?
Membership dues are used to pay for administrative services provided by HAPI/PIP.
How much are the dues?
Annual dues currently range from $100 for Risk Class 1 to $1,000 for Risk Class 7B.
Must I continue to pay for my dues if I become totally disabled?
No. You do not pay dues while you are deemed totally disabled by HAPI.
Is there anything else I should know about the dues?
Members who have attended HAPI sponsored annual Risk Management Seminars have, in the past, received a monetary credit toward their dues.
Membership dues are used to pay for administrative services provided by HAPI/PIP.
How much are the dues?
Annual dues currently range from $100 for Risk Class 1 to $1,000 for Risk Class 7B.
Must I continue to pay for my dues if I become totally disabled?
No. You do not pay dues while you are deemed totally disabled by HAPI.
Is there anything else I should know about the dues?
Members who have attended HAPI sponsored annual Risk Management Seminars have, in the past, received a monetary credit toward their dues.
Assessment
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How does an assessment differ from the deposit and dues?
An assessment is similar to a traditional insurance premium.
What is the assessment used for?
In combination with the income earned on the deposits, assessments are primarily used to pay for defense costs, settlements and judgments.
How are the Assessments determined?
HAPI's approach to pricing is based on costs. There is no profit motive.
Each specialty pays an assessment appropriate to their risk class, which is based upon industry and HAPI claims experience.
Must I continue to pay for my Assessments if I become totally disabled?
No. You do not pay assessments while you are deemed totally disabled HAPI.
An assessment is similar to a traditional insurance premium.
What is the assessment used for?
In combination with the income earned on the deposits, assessments are primarily used to pay for defense costs, settlements and judgments.
How are the Assessments determined?
HAPI's approach to pricing is based on costs. There is no profit motive.
Each specialty pays an assessment appropriate to their risk class, which is based upon industry and HAPI claims experience.
Must I continue to pay for my Assessments if I become totally disabled?
No. You do not pay assessments while you are deemed totally disabled HAPI.