insurance. They went out of business after I was with them--no claims btw--and I went with another company and still am today. Five years ago I got an "assessment" by the bankruptcy court for $ 5000, $ 2500 for each year I was with PR. I have refused to pay, at least I have not paid. I think that this judgement is unfair, even though I have been told that the "risk" was somewhere in the contract's fine print.
My question is twofold: because they are out of Georgia, will they put a lien on my home? or will they try to attach my income in some way? What way would be more likely? How would I fight this?
At first blush, and in my ignorance of things legal, I hope they put on a lien to which in my county they will have to renew every five years. And, at the end of the five years, go before a judge in my state (not Georgia) to beg for some relief.
Any help would be greatly appreciated.
rickinnocal
This issue has been thoroughly litigated, and you are out of luck. You are liable.
PRA's premiums, as I'm sure you figured out before buying the policy, were a LOT lower than most regular insurance policies. This is because PRA stands for "Physicians Reliance *Association*" (Emphasis mine)
PRA was a mutual insurance Association. This means that the members are mutually responsible for each others claims. PRA purchased re-insurance tp cover any big losses, but the membership agreements clearly set out that members could be liable for up to $ 4,000 each year to cover the previous years claims if the amount that had been collected in premiums did not cover the claims they paid.
After PRA went under, they were left with millions in debts. Each member could be liable for up to $ 4,000 per year of that. The bankruptcy trustee agreed to limit each members liability to $ 2,000 per year of membership. Some time in, I believe, 2006 he increased that to $ 2,500 for those who had not yet paid.
The collection agency has MANY ways to collect in Georgia.
First, who purchased the plan? Was it you as an individual, or are you incorporated as a medical corporation? The buyer is the entity liable for the money, and who can be compelled to pay.
In the simplest situation, where you are in business as a sole proprietor, or employed by a hospital or clinic as an employee, they can sue you in Georgia, get a judgment, and then garnish your wages, attach your bank accounts or lien your home or other real estate. If you are self employed they cannot garnish your wages, but they can do a "till-tap" - which is where a bailiff or deputy sheriff comes and sits in your office all day and takes any payments that you receive as they come in. I'm sure you don't need me to tell you how good that makes you look to the patients. If you don't get much cash - most money comes from the insurance companies in checks made out to you or your practice - they can even seize your office equipment to sell at public auction.
Pay them. They WILL get the money one way or another, and it's YOU that gets to cover their costs in doing so. At the moment it's $ 5,000 plus some late fees and interest. If they sue you, the court and attorneys fees will be added in, plus you'll be billed for all the collection costs.
Richard
Orignal From: Twenty years ago I was with a company (Physician's Reliance) as a physician client; this was malpractice?
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