Huge Salaries Paid to Medical Malpractice Insurance Company Execs
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When listening to the false propaganda generated by insurance companies concerning the alleged "medical malpractice crisis", you should consider the huge salaries paid to the four top executives of Medical Mutual Insurance Company of North Carolina. These four executives collected over $2 million paid for their services in 2006.
When you hear numbers like that, you need to ask yourself the real reason doctors pay high medical malpractice insurance premiums.
Medical Mutual is not a big multi-state company. On the contrary, it is a small mutual insurance company supposedly owned by the North Carolina doctors they insure. Perhaps the doctors should ask themselves who is in charge at Med Mutual, the board of directors or these top execs.
According to the Raleigh, North Carolina News and Observer, these huge salaries came to light in connection with a North Carolina insurance commissioner's audit which revealed that these same executives had cut themselves in personally on a $9.8 million real estate deal with the company. The executives denied any wrong doing.
In a settlement with the North Carolina Department of Insurance, Medical Mutual, presumably, the doctors who the company insures, paid a $75,000.00 penalty.
However, the high-paid executives agreed to give back to Medical Mutual their ownership interest in the real estate deal as well as any profits they received so far.
The insurance department did not take issue with investments themselves or with the amount of compensation contemplated in the investment plan. It did object however to the personal involvement of the executives.
Any time you hear someone complaining about a so called medical malpractice crisis or high medical malpractice insurance premiums, remind them about the top executives at Medical Mutual Insurance Company of North Carolina.
The 2006 compensation for these top execs, not counting the profits from the real estate deal, which they gave up are as follows:
• Chief Executive Officer $675,933.00
• Senior Vice President $341,843.00
• Senior Vice President, General Counsel $601,522.00
• Treasurer $548,497.00
For more information on this subject, please refer to the section on Medical Malpractice and Negligent Care.