Quarterly Newsletter The quarterly newsletter will cover issues affecting bi-cultural doctors. It will include expert contributed articles, member contributed articles, statistical analysis and other information useful to the general membership. Members Only Library A members-only library will be a reference resource for subjects that the members have interest in. Questionnaire Form FAQs AABCD Professional Liability Insurance Program The AABCD is excited to offer its members an opportunity to become a charter member of a start-up medical professional liability insurance company which will be owned by the members and governed by their peers on the Board of Directors. The insurance company will take a form of risk retention group to take advantage of the federal Liability Risk Retention Act. Hence, it will be licensed in one state and be able to transact insurance business by simply registering in any other state. The business plan is summarized below. It's been thoroughly reviewed and analyzed by an actuary who's an expert in medical professional liability. The business plan also received a favorable response from the insurance department of the state of its intended domicile. Given sufficient support by the members of AABCD, the plan can become reality and the AABCD members will become owners of the insurance company. To support formation of the insurance company, we ask you to contact us or fill out the attached Questionnaire Form. Premium Rates Any doctor will be able to participate in the insurance program subject to the underwriting criteria. However, our premium rate structure will make us competitive only on those doctors who serve foreign-born communities whose primary language has no resemblance to English. The premium rates will be actuarially determined and will have four tiers. Tier 1 (Base Tier) will be set somewhat higher than key competitors depending on the state. Tier 2 (Silver Tier) will be about 40% below Tier 1. Tier 3 (Gold Tier) will be about 50 to 55% below Tier 1. Tier 4 (Platinum Tier) will be about 60 to 65% below Tier 1. Qualification for each tier depends on the percentage of patients whose primary language is one of the eligible foreign languages. (See below for Eligible Foreign Languages.) Basically, the higher this percentage is, the higher the tier and the lower the premium will be. Shown below is an illustration of rate comparison: Eligible Foreign Languages The eligible foreign languages will be those classified by the Department of State as Hard or Superhard for English speakers to learn. They are listed below: Hard Foreign Languages - Languages with significant linguistic and cultural differences from English. They are Albanian, Amharic, Armenian, Azerbaijani, Bengali, Bosnian, Bulgarian, Burmese, Belarusian, Croatian, Czech, Estonian, Finnish, Georgian, Greek, Hebrew, Hindi, Hungarian, Icelandic, Khmer, Kurdish, Kyrgyz, Lao, Latvian, Lithuanian, Macedonian, Malayalam, Mongolian, Nepali, Pashto, Persian, Polish, Russian, Serbian, Sinhala, Slovak, Slovenian, Tagalog, Tamil, Thai, Turkish, Turkmen, Ukrainian, Urdu, Uzbek, Vietnamese, Xhosa, Zulu. Superhard Foreign Languages - Languages that are exceptionally difficult for native English speakers to learn. They are Chinese, Japanese, Korean and Arabic. Ownership and Governance The company will be 100% owned and directed by its insured doctors only. A majority of directors on the Board of Directors will be the insured doctors. The management team will carry out the Board's decisions. Capital Contribution To become an owner-insured, a doctor will have to fill out an application form and meet the underwriting criteria established by the management and approved by the Board. Once the doctor is accepted, he/she will have to pay the insurance premium and capital contribution. The capital contribution will be equal to one year's mature claims made premium, and it will be payable over time, e.g., 40% in year 1, 40% in year 2, and 20% in year 3. The capital contribution will be exchanged for shares of company stock. The share price will be set low initially to encourage owner-insureds to pay the capital contribution in full upfront. Information Circular Prior to becoming an owner-insured, each prospect will receive an Information Circular which will provide details about the insurance company, management and support services, insurance policy, stock, application form, subscription and shareholder agreement, financial projections and risk factors. Management The Board of Directors will manage the insurance company. In addition to the owner-insureds, the board will include veterans of insurance and reinsurance industry with strong medical professional liability experience. Reinsurance The management will purchase reinsurance from multi-national reinsurance companies with excellent financial strength to further protect its owner-insureds.