Regarding the cost of defense being taken from E&O insurance.
1 - Staff told inspector committee it cannot be done. Proposed rule change.
2 - Inspector committee approved and sent to Commissioners
3 - Commissioners approved and posted for comment
4 - Inspector committee met again before the end of public comment period and heard concern from the public.
5 - Inspector committee retracted their prior approval
6 - Commissioners met and postponed Rule change; sent back to inspector committee for further discussion
7 - Inspector committee met again and said “We don’t know” send back to Commissioners.
8 - Commissioners met again in February and sent back to inspector committee and said discuss this with Sunset review later this year. Propose a legislative solution.
That is where it sits. One potato, two potatoes, hot potatoes three. Put on your asbestos gloves.
The highest reported claim was about 88k. The average claim paid is 10k to 15k. Zero times on defense absorbing all the money so far. Staff allegations are totally hearsay. I did open records and asked for their proof and they said they had none.
We are going to have to propose a solution for Sunset and legislation. I am thinking about going back to the recovery fund and specifying in the law, that liability can be negotiated in a contract. I would personally continue to buy E&O insurance even if they signed a contract. E&O is a “business” protection product and not a “public protection” product.