The Pennsylvania Department of Insurance has put malpractice insurer Healthcare Providers Insurance Exchange into liquidation.
HealthCare Providers Insurance Exchange, known as HPIX and based in Philadelphia with additional offices in Camp Hill, Pa., was founded in 2002 in the midst of Pennsylvania’s malpractice insurance crisis. It is owned by doctors, who bought policies from the company.
Most of HPIX’s business was sold at the end of 2015 to Medical Mutual Insurance Co. of North Carolina, but HPIX retained exposure to 89 claims.
During the course of the run off of those claims, HPIX’s assets fell $9.1 million below what is needed to satisfy claims, according to a petition for liquidation filed in Pennsylvania Commonwealth Court in December.
A Commonwealth Court judge approved the liquidation on Jan. 12. The liquidation order allows insurance regulators to take control of a defunct insurer’s assets and to distribute them in an orderly fashion.