CAT fund

Catastrophic Liability Fund. A professional liability fund that exists in some states—e.g., Pennsylvania—into which physicians and hospitals pay for malpractice insurance

CAT fund

Catastrophic liability fund Malpractice A professional liability fund that exists in some states–eg Pennsylvania, into which physicians and hospitals pay for malpractice insurance
References in periodicals archive ?
The total amount of claims the Cat Fund has paid out for the eight storms in 2004 and 2005 was less than $10 billion.
The cat fund estimates there will be a statewide average increase of 0.
Act 13, signed into law in March, began the move toward repairing the system with patient-safety measures and gradual privatization of the state CAT Fund.
However, those bonds will be paid back with an increase in a Cat Fund assessment already found on most insurance bills in the state, including auto insurance bills.
Because of the cat fund, these are not significant events in terms of ceded losses for reinsurers," he said.
We are very pleased to begin this bid process as a first step in the privatization of the CAT Fund," Commissioner Koken said.
What may get lost in the back and forth between the insurance industry and public adjusters is the ongoing impact that these claims may have on the shaky financial status of both Citizens and the Cat Fund.
The Cat Fund, which requires each insurer in the state to pay premiums into it, provides catastrophe reinsurance to the insurers if losses exceed a predetermined retention level.
Providing immediate relief to physicians by giving them a CAT Fund discount in 2002, 2003 and 2004; -- Strengthening the state Medical Board's power by granting it enforcement authority to investigate physicians; -- Privatizing the claims handling of the Pennsylvania Medical Catastrophe Fund (CAT Fund) beginning this fall, and phasing it out entirely beginning in 2006; -- Allowing malpractice judgments for future medical costs to be spread out over time; -- Requiring claims to be filed within seven years from the date of injury; -- Eliminating the duplication of recovery for past medical expenses; and -- Allowing doctors and hospitals to have verdicts lowered by a judge if it would force a doctor out of business or force a hospital to cut services, thereby damaging the community.
Additionally, HB 1495 called for the gradual phase out of the top layer of coverage now authorized by the Cat Fund.
A number of insurers that purchased 90 percent coverage from the Cat Fund have already reached their deductible level for those two storm seasons, so they are passing on the cost of these new claims to the Cat Fund.
What is at fault is the public policy that has forced the Cat Fund to far overreach its ability to pay.