Who is NJHPIX?

NJHPIX is a company in the business of putting doctors first. Talk to a NJHPIX insured. You may find that even in an environment that seems to make it more and more difficult for a physician to practice, there is one liability insurer intent on making things better.

NJHPIX is a domestic New Jersey reciprocal insurer which is funded by participating healthcare providers and is reinsured by A-rated carriers. There are two primary goals behind our organization: first, to provide an alternative source of medical professional liability insurance for physicians in New Jersey; second, to stabilize the cost of this insurance through sound underwriting, risk management, and innovative claims management.

Organizational Structure

NJHPIX maintains a unique organizational structure as a reciprocal exchange. This structure has proven to be more favorable in dozens of states throughout the country. Licensed by New Jersey Department of Banking and Insurance (DOBI), we are an unincorporated association that is managed by an Attorney-in-Fact, New Jersey Healthcare Providers Insurance Services Company, LLC. The Attorney-in-Fact is responsible for operations management including underwriting, premium collection, investment management, claims handling, and general administration. The Attorney-in-Fact manages the Exchange for a fixed fee, which is approved by NJDOBI. Our participating physicians become members by making a one-time surplus contribution, in addition to their first year premium. (Click here to see our Certificate of Authority.)

Surplus Contribution

The NJHPIX surplus contribution is a one-time payment, payable with a completed application, and is based on the physician’s specialty. The surplus payment will be refunded if an initial policy is not offered by NJHPIX or if the policy is not accepted by the physician.

The insured may be entitled to a return of surplus or a portion thereof within 15 years or if the exchange is sold, provided approval is received from the New Jersey Department of Banking and Insurance and the Attorney-in-Fact.

Subscribers Advisory Committee

We have a Subscribers Advisory Committee that consists of current insureds and our management team. Through our Subscribers Advisory Committee and the physician advisory committees, NJHPIX management seeks input on key issues from its physician members. The Committee meets quarterly to review the financials of the company and make recommendations regarding risk management, marketing, and clinical issues.

Physician Committees

We are also in the process of forming various physician advisory committees as a resource for advice on certain difficult claims and risk management issues as they arise. These committees will also include subscribers, to take advantage of our members’ extensive knowledge.

The Benefits of our Structure: Better Than a Public Company

Our operating expenses are capped and—unlike a public company—all underwriting profits are retained by the Exchange. If a public company makes a profit, it goes to shareholders. If NJHPIX earns a profit, we use the funds to either strengthen our reserves or to stabilize premiums. As a New Jersey-domiciled exchange, we do not intend to sell policies outside of New Jersey. In an era in which many doctors see their hard-earned money going toward an insurer’s corporate profits, NJHPIX offers the opportunity to invest those profits in the future of its insureds. With NJHPIX, all profits will stay in New Jersey.