Q. What is OMIC?
A. OMIC, Ophthalmic Mutual Insurance Company, is the only ophthalmologist-owned risk retention group in the country and the only professional liability carrier sponsored by the American Academy of Ophthalmology. Established in October 1987, OMIC is the largest insurer of ophthalmologists in the United States, insuring more than 4,100 Academy members nationwide. The company operates as a mutual insurance company and is governed by a Board
of Directors composed of practicing ophthalmologists insured with OMIC.
Q. What is a Risk Retention Group?
A. A Risk Retention Group is a chartered or licensed insurance company formed under the Federal Liability Risk Retention Act of 1986. The Risk Retention Act permits persons who practice in professions with similar liability risks to organize their own liability insurance carrier. A Risk Retention Group is owned by its members, who are also policyholders. Although a Risk Retention Group only needs to be chartered and licensed in one state, it may offer insurance coverage in other states as well. OMIC is licensed in Vermont and offers coverage in all states. (Coverage in Wisconsin is currently limited to eye banks.)
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Q. What is the Academy's role with respect to OMIC?
A. In the mid 1980's, when ophthalmologists around the country voiced
their concern over extremely high rates charged by other insurance carriers,
the American Academy of Ophthalmology responded by helping to create an independent
insurance carrier, OMIC, to write professional liability coverage exclusively
for its members. Although the Academy sponsors OMIC in this role and many of
OMIC's Board members are or have been active in voluntary capacities with the
Academy, OMIC operates as a separate and independent company. OMIC, not the Academy,
is solely responsible for all insurance and business decisions, including coverage,
underwriting, claims, and defense decisions.
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Q. Does OMIC offer access to other insurance products
A. Yes. In addition to professional liability insurance covering allegations of medical malpractice, OMIC also coordinates access to other business insurance programs specifically tailored to the unique exposures of an ophthalmology practice. Underwriting and claims services for these additional programs are provided by superior "A-rated" carriers, including The Hartford, NAS Insurance Services and Lloyds of London. Coverage options include employment practices liability insurance for wrongful termination, discrimination, sexual harassment and other similar allegations; broad regulatory protection for actions related to fraud and abuse, HIPAA privacy, EMTALA, and other proceedings; managed care errors and omissions coverage (for alleged errors, omissions, and breach of duties made in managed health care administration), directors and officers liability insurance (which protects directors and officers against liability exposures associated with the operation of ophthalmic corporate entities and partnerships), and employment practices liability insurance; business owners policies including general liability, property, and business operations coverage, and workers' compensation for employee work-related injuries.
OMIC also provides access to an Academy-sponsored administrator of life, health, and other personal insurance products. Marsh Affinity Group Services consults with OMIC and the Academy to select high quality carriers offering group term life, disability income, short-term disability, office overhead expense, long-term care, excess major medical, Medicare supplement, gateway international accident and medical, and small business group health products.
Academy members are invited to contact Dana Pollard, at NAS Insurance Services (877) 808-6277 (or dpollard@nasinsurance.com) for business products. Please visit AAOInsure.com for more information on all sponsored Life and Health products, or call (888) 424-2308. Academy members may also contact OMIC for limited inquires about these products including contact information by calling (800) 562-6642 or visiting the "Business Coverages" or "Life & Health" pages of our web site.
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Q. Does OMIC have a "Best" Rating?
A. Yes. OMIC has maintained a favorable rating from A.M. Best Company since first becoming eligible for a rating.
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