2008 TMLT Annual Report

April 5, 2002Texas Governor Rick Perry announcesa plan to solve the medical liabilitycrisis in Texas. Among the governor’ssuggestions, capping noneconomicdamages at $250,000.May 6, 2002House Committee on Insurance holdsa public hearing on medical liabilityinsurance. TMLT staff testify before thecommittee.July 2002In the face of a decline in surplus dueto claim frequency and severity, TMLTannounces surplus call to policyholders.Fall 2002TMLT staff serve on the TAPA legislativecommittee to develop a health careliability reform agenda modeled afterCalifornia’s MICRA statute.2003January 24, 2003Governor Rick Perry declares medicalliability reform an emergency issue forthe 78th Texas Legislature.June 2, 2003The Texas Legislature passesHouse Bill 4, including a$250,000 cap on noneconomicdamages.June 2003The historic “rush to the courthouse”begins. From June to October 2003, theTMLT claim department received 1,489lawsuits, compared with 523 lawsuitsreceived June to October 2002.Summer 2003The Wall Street Journal publishes aneditorial calling the Texas medicalliability reforms, “Ten-Gallon TortReform.”September 2, 2003TMLT announces it will reduce rates by12% if the voters pass Proposition 12,the constitutional amendment allowingthe legislature to set caps on noneconomicdamages.September 13, 2003Proposition 12 passes, ensuring themedical liability reform measures enactedin 2003 will withstand judicial scrutiny.TMLT announces rate reductions of 12%,to take effect January 1, 2004.December 31, 2003The year ends with 10,922 TMLTpolicyholders.2004TMLT’s 25th anniversary – policyholdercount exceeds 12,000.October 2004TMLT announces a 5% rate reductionto take effect January 1, 2005. This is thesecond consecutive year of post tortreform rate reductions.2005TMLT awards $35,000in medical studentscholarships in the first TMLT MemorialScholarship competition.June 2005TMLT and TAPA lead efforts to protect2003 tort reform during 2005 legislativesession.October 2005TMLT initiates first 5% dividend creditfor 2006 renewal based on Trust earningsand strong capital position. The dividendamounts to approximately $10 million.TMLT again reduces rates by 5% effectiveJanuary 1, 2006.2006You’ve Been Sued: SuccessfullyNavigating the LitigationProcess, TMLT’s firstDVD-based CME programis released by the TMLT RiskManagement Department.August 2006Tom Cotten resigns. Bob Fields is namedActing President and CEO.October 2006TMLT announces another 20% dividendcredit for 2007 renewal. The dividendamounts to approximately $35 million.TMLT announces another 7.5% ratereduction effective January 1, 2007.December 31, 2006TMLT ends 2006 by winning 73 of 75cases taken to trial. This represents thehighest win percentage record and thelowest trial loss record in TMLT history.Policyholder count at the end of theyear was 14,163.2007June 2007TMLT, TMA, and TAPA are again successfulin protecting 2003 tort reform during2007 legislative session.June 25, 2007Bob Fields is named Presidentand CEO.September 2007TMLT announces a 6.5% rate reductionand 22% dividend credit to be effectiveJanuary 1, 2008. Policyholder count at theclose of 2007 was 14,585.2008January 2008The IN RE WATSON case was filed inDallas, marking the first federal constitutionalchallenge to the Texas $250,000damage cap.September 2008TMLT announced an average4.7% rate reduction and22.5% dividend for 2009.October 2008Stock market drops 40% in less thanone year but TMLT surplus grows.11