Frequently Asked Questions
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Frequently Asked Question Pages
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Fund Coverage Limit Explanations

The Health Care Stabilization Fund coverage limit is based on when the incident happened, not when the claim was made or the suit was filed. For example, a health care provider first complies with the Fund on January 1, 1994 and selects the $100,000/$300,000 coverage limit. On the policy renewal date of January 1, 1995, the health care provider has received approval to increase their Fund coverage limits to $800,000/$2,400,000. In 1996 a claim was made based on care rendered in 1994. The health care provider has $100,000 Fund excess coverage for this claim. The coverage limits selected for specific compliance periods remain in effect for future claims or suits which are covered by the Fund.

Claims made or suits filed against health care providers actively practicing, or eligible inactive health care providers who have qualified for the Fund’s continuing coverage, are afforded coverage for those services rendered or failed to be rendered during any period the health care provider complied with the Fund. Resident health care providers (i.e., those whose legal residence is in Kansas) who comply with the Fund are afforded coverage from the Fund for judgments or settlements which exceed the required basic professional liability coverage for their services rendered inside and outside of Kansas. For non-resident health care providers (e.g., a provider who lives in Missouri but practices in Kansas), the Fund’s coverage is available for only those professional services rendered in Kansas.

Most insurance agents and company representatives will provide assistance to the health care provider, but because of the complexities which affect the application of the Fund’s coverage limits, health care providers should attempt to gain an understanding of the Fund’s overall operation. Health care providers may also contact the Fund if they have concerns or comments regarding any facet of the Fund’s operations.

Which Fund Coverage Limit Should Be Selected?

All health care providers initially complying with the Fund must select one of the three available coverage limits. Most health care providers select the highest Fund coverage limit. An individual health care provider may be required to carry the highest Fund coverage limit by H.M.O.s, P.P.O.s, hospital credentialing committees, etc.

AVAILABLE FUND COVERAGE LIMITS:

• $100,000/$300,000

• $300,000/$900,000

• $800,000/$2,400,000

Once a health care provider has made a coverage level selection it will be continued from year to year, unless the health care provider requests to increase or decrease their previously selected coverage limit.

• Health care providers who wish to increase their coverage limit selection must complete and submit a Request To Increase Health Care Stabilization Fund Coverage Limits form to the Fund Board of Governors. Blank copies of the request form are available from the Fund Compliance Section (telephone number 785-291-3475). Increases in Fund coverage limits can not become effective until approved by the Fund Board of Governors (changes in Fund coverage limits can not be made retroactively).
• A health care provider may reduce their coverage limit by contacting the Fund Compliance Section (telephone number 785-291-3475).

Is Excess Professional Liability Insurance Beyond Fund Coverage Limits Needed?

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Why Does The Fund Law Refer To Active And Inactive Health Care Providers? 

These terms are used in the Fund law to establish how the coverage of the Fund will be applicable to a claim or suit made against a health care provider. Active health care providers are those individuals and entities engaged in rendering professional services and are maintaining the basic professional liability insurance. For active health care providers, the Fund coverage is excess of the primary policy. Inactive health care providers are those individuals who are no longer maintaining basic professional liability insurance solely because they are no longer rendering professional services as a Kansas health care provider. The Fund provides first dollar defense and first dollar loss costs, when necessary, for eligible inactive health care providers.

This difference in the application of the Fund coverage is important to Kansas health care providers because it removes the need for Kansas health care providers to purchase “tail” coverage from their basic professional liability insurer. Health care providers who become inactive are afforded Fund “tail” coverage without any additional cost if the provider has complied with the Fund for at least five years (post graduate training compliance periods do not count toward this five year requirement). Health care providers with less than five years of Fund compliance may purchase, or buy-out, the Fund “tail” coverage.  ( Added May 16, 2005:  For more optional tail coverage information, click Here.)

It is important that active health care providers maintain the basic professional liability insurance and comply with the Fund. The Fund provides its continuing tail coverage only for those qualified inactive health care providers. As stated in the Fund law, an inactive health care provider means “a person or other entity who purchased basic coverage or qualified as a self-insurer on, or subsequent to, the effective date of this act but who, at the time a claim is made for personal injury or death arising out of the rendering of or the failure to render professional services by such health care provider, does not have basic coverage or self-insurance in effect solely because such person is no longer engaged in rendering professional service as a health care provider.

  Obtaining Basic Professional Liability Coverage From The Availability Plan

Any health care provider who is currently licensed, registered or certified to render professional services in Kansas may obtain basic professional liability insurance coverage from the Health Care Provider Insurance Availability Plan, if the provider has been denied basic coverage from the voluntary insurance market. Any licensed insurance agent should be able to provide assistance in making application to the availability plan. The availability plan is administered by the Kansas Medical Mutual Insurance Company of Topeka, Kansas (Telephone 785-232-4740 or 1-800-232-2259).

This availability plan is one of the key features of the Fund law. Without this availability plan some Kansas health care providers would be required to seek the basic professional liability insurance coverage from the non-admitted insurers. Even then, it is likely that some individual health care providers would not be able to obtain professional liability insurance.

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