Mutual Protection Trust Earns Third A+ Rating From A.M. Best

The Cooperative of American Physicians, Inc. (CAP) today announced that the exceptional financial strength of its core product, Mutual Protection Trust (MPT), has again earned an A+ rating from A.M. Best Company, a worldwide rating and information agency. This marks the third consecutive year that MPT has achieved this rating.

"We are pleased and proud to have earned an A+ Rating again this year," said CEO James L. Weidner. "It validates the hard work and dedication of our physician members, our underwriting process, our risk management and patient safety program, and our entire staff."

According to A.M. Best, the rating not only reflects MPT's financial strength, but also recognizes "the benefits from its unique business model, selective and rigorous peer review process, and strong member retention. In contrast to traditional insurance, MPT pre-funds its expected losses and expenses each year via member assessments. Over the years, MPT's track record in managing these assessments has been excellent -- reporting pre-tax income in each of the last ten years and no unanticipated assessment since 1985. Unlike traditional insurers, MPT's results have not been affected by adverse reserve development. This is further testament to MPT's assessment process."

In fact, MPT prices have decreased in each of the last three years. Looking further, over the past 10 years, MPT's annual assessment has increased an average of just 1.0 percent, meaning members pay virtually the same today as they did 10 years ago. As an unincorporated interindemnity arrangement, MPT operates pursuant to Section 1280.7 of the California Insurance Code and is governed by a seven-physician board of trustees.

About CAP

The Cooperative of American Physicians, Inc. was established in 1975 by California physicians who wanted to manage the escalating cost of medical professional liability coverage. In 1977, CAP launched the Mutual Protection Trust which today is recognized as the leading medical professional liability provider in California. Based in Los Angeles, CAP has offices in San Diego, Orange, Sacramento, and Mountain View, California.

James L. Weidner, CEO

A graduate of St. Joseph's College in Indiana, and an alumnus of the Stanford Executive Program, he is a board member of the Physician Insurance Association of America, the Insurance Education Association, and serves on the Insurance Council for City of Hope.