HealthCap is HUD Approved
HealthCap is rated A, Exceptional by Demotech, Inc. and was the first risk retention group accepted as a professional liability insurance provider for HUD Section 232 Programs. HealthCap was assigned a Financial Stability Rating® of A, Exceptional from Demotech, Inc. a financial analysis and actuarial services firm. Demotech has been approved as a HUD authorized rating service under HUD Notice H 04-15. An A rating from Demotech allows insurance companies to provide professional liability insurance that qualifies under this notice.
HUD Requires Qualifying Liability Insurance
HUD Notice H 04-15, Professional Liability Insurance for Section 232 Programs (August 3, 2004), requires health care facilities to maintain professional liability insurance. This insurance shall be obtained from an insurance company with a B++ rating or higher from A.M. Best Company or an A rating or higher from Demotech, Inc.
Demotech, a HUD Approved Rating Firm
Demotech, Inc., a firm experienced in rating smaller insurance providers, is approved by HUD, Fannie Mae and Freddie Mac as a rating provider of P/C liability insurance and title insurance. HUD completed a review process and concluded that Demotech, Inc. was qualified to provide rating services comparable to AM Best for smaller professional liability insurance providers. The rating service of Demotech, Inc. will include captives, risk retention groups, smaller licensed regional insurance carriers and other risk sharing entities. The Demotech A rating is comparable to a rating of B++ from AM Best. Demotech’s rating process includes a comprehensive financial stability analysis, a review of the operations and claims processing procedures of the insurer, a test of the quality of the insured policyholders, and a comprehensive review of risk management procedures and policies as well as other important industry wide standard measures of stability and operations.
Downloads and More Information
Download HUD Notice 04-15h for Section 232 liability insurance guidelines.
Download the HUD Demotech Approval notice
For more information, you may visit Demotech at www.demotech.com, and HUD at www.hud.gov