State Seizes Troubled Malpractice Insurer Physicians Standard

The Kansas insurance commissioner will take supervisory control of a company that provides malpractice insurance to nearly 500 medical professionals in Missouri and Kansas.

A Shawnee County judge last week placed Physicians Standard Insurance Company in rehabilitation mode with Kansas regulators. The action comes after Kansas Insurance Commissioner Vicki Schmidt filed a petition seeking the action, with the consent of the company’s board of directors.

The Topeka Capital-Journal reports company’s financial condition has declined since 2018 but the order gives PSIC the chance to remain solvent while working to rehabilitate its situation.

Most of the physicians covered by PSIC work in Missouri but the company is based in Kansas.

Under the court order, PSIC will continue to operate and malpractice policies will remain in effect.