ABOUT US

BRIEF HISTORY OF PROFESSIONAL INSURANCE EXCHANGE

Professional Insurance Exchange is a reciprocal insurance company which provides professional liability insurance only to dentists practicing in Utah. We have been in business since September 1978 and are the first operational dentist-owned insurance exchange in the United States. We currently insure 90% of the dentists practicing in Utah. The total number of insured under our policy was 1,220 as of 12/31/2004. P.I.E. is managed by an attorney-in-fact, a dentist who has been given the power of attorney to act on behalf of the membership. The company is governed by a nine-member advisory committee consisting of nine dentists from throughout the state of Utah with over 250 cumulative experience as practicing dentists. The company also owns a licensed insurance agency, Professional Assurance Corporation, through which a number of insurance products such as office property and casualty or disability insurance can be made available to the membership.

Professional Insurance Exchange is an independent entity and is not affiliated with the American Dental Association, Utah Dental Association or any other dental organization. Nevertheless, P.I.E. has enjoyed a good working relationship with the A.D. A. and U.D.A. and has provided speakers for U.D.A. meetings and has worked closely with the U.D.A. on legislative matters relevant to both organizations.

P.I.E. offers a claims-made insurance policy which is the current industry standard. Coverage is available for dentists who practice hospital dentistry or perform I.V. sedation, either themselves or with the help of a qualified anesthesiologist or nurse anesthetist, in their own office. Oral sedation coverage is also available under the same classification. Coverage is also provided for dentists who have their dental hygienists perform local anesthetics. Premiums are very reasonable and, as is typical with claims-made policies, start out relatively low and step up to a mature rate which remains constant from the fifth year of coverage onward.

The liability limits offered by Professional Insurance Exchange are industry standard at $1 million per claim and $3 million annual aggregate. The Company retains a team of experienced lawyers at the firm of Snow, Christensen and Martineau which are instrumental in defending claims and negotiating reasonable settlements when necessary. Nevertheless, in the twenty seven year history of the Company thus far, there has never been a settlement that exceeded $100,000.

In the past, at least two/thirds of claims that P.I.E. has had to defend are non-meritorious in nature, meaning that there is no factual basis for such a claim to be filed. P.I.E. has chosen to fight such claims rather than develop a reputation of giving away money to anyone who complains about their dentist.

What types of situations generate claims? Most contain an element of indebetedness by the patient. Many claims in recent years have been related to endodontic procedures performed by general dentists. In recent history, the company has had to defend an increasing number of claims resulting from problems caused by general dentists mishandling treatment of orthodontic cases. There have also been a significant number of claims based on paresthesia following oral surgery and problems related to restorative dentistry.

Professional Insurance Exchange publishes a quarterly newsletter which contains suggestions on ways to avoid malpractice situations. Lectures are often given by P.I.E. officers in dental society or study club settings or in courses sponsored by the Academy of General Dentistry. The use of written informed consent has been emphasized for over a decade. Dentists are also advised to avoid criticism of colleagues and to practice within the limits of their training.

We have found that the vast majority of Utah dentists are interested in providing optimum quality dental care to their patients and are interesting in upholding the excellent reputation that dentistry has been able to establish in our society.

Richard C. Engar, DDS, FAGD, FADI, FICD, FACD
Attorney-in-Fact