State shuts down malpractice insurer

By Phil Galewitz, Palm Beach Post Staff Writer
Saturday, August 10, 2002

BOYNTON BEACH -- The state Department of Insurance on Friday shut down an unlicensed Atlanta-based company, accusing it of selling worthless medical malpractice insurance.

The action comes two days after the state stopped a New Zealand-based company also for allegedly selling worthless malpractice coverage. Among the promoters for the Atlanta-based company -- which went by the names Physicians Exchange Risk Retention Group, Doctors Liability Exchange and Physician Exchange Risk Group -- was Boynton Beach-based Professional Risk Management LLC.

Professional Risk is owned by Jerry Agtmaal, an insurance agent. Other than Agtmaal, none of the companies or principals were licensed to transact insurance business in Florida, the department said.

Agtmaal, who is under investigation, could not be reached for comment.

The second company shut down this week was Embassy Bonding & Surety Ltd., which says it is associated with an unidentified New Zealand-based insurance operation.

The department, however, has determined no link between Embassy and any legitimate insurer.

A Department of Insurance spokesman did not know how many policies the two companies sold.

The state's move to clamp down on unlicensed insurers comes as thousands of doctors around the state are scrambling to find malpractice coverage. At least six malpractice insurers have left the state or have gone out of business since 2001, while others have stopped writing policies for new customers.

"Unlicensed medical malpractice insurance poses a grave and immediate risk of financial harm to doctors, and potentially their patients," Insurance Commissioner Tom Gallagher said in a statement. "Unlicensed entities prey on medical professionals who may be having difficulty obtaining medical malpractice insurance."