In a letter mailed to doctors of chiropractic late last year, the OUM insurance company, of Bellevue, Washington, expressed their concerns over the actions of Chiropractic Benefit Services (CBS) in allowing their policyholders to continue to be covered by Reliance National Indemnity:
"CBS is allowing all of its policyholders to remain insured through its previous carrier, Reliance National Indemnity - even though Reliance has immediately discontinued writing malpractice insurance for chiropractors. (In fact, Reliance is expected to declare bankruptcy over the next few months, according to Reuter's News Service.) (Emphasis theirs.)
"CBS is permitting thousands of its policyholders to remain insured through Reliance until their policies come up for renewal throughout 2001. If you are insured with CBS, this is what you can expect: Rather than inform you that you can cancel your CBS/Reliance policy now - and receive a refund for the unused premium due you - CBS has chosen to remain silent and allow all its members to continue to be insured with Reliance until their coverages expire next year. Reliance/CBS will no doubt send you a Non-Renewal Notice, informing you that your policy will be cancelled in 45-60 days prior to your policy expiration date. CBS will then send you a renewal notice and switch you to its new carrier that has limited experience writing chiropractic malpractice insurance. CBS/Reliance policyholders aren't made aware of this so you can switch coverage now to a stable and secure company." (Emphasis theirs.)
"This marks the third time in recent years CBS has been forced to find a new carrier to serve its clients."
