APA completed the sale of its professional liability insurance program last month to Legion Insurance Company and its corporate affiliates.

"I see this as a very positive step for the program and its participants," said Alan Levenson, M.D., president and CEO of Psychiatrists’ Purchasing Group (PPG), the sponsor of the liability insurance program. "The new structure builds upon the solid foundation of the existing program, and program participants will still be served by the same experienced insurance carriers and knowledgeable administrative staff."

As part of the agreement, Legion and its corporate affiliates purchased the APA companies involved in its professional liability insurance program—Psychiatrists Mutual Insurance Company, Psychiatrists’ Risk Retention Group, and the latter’s subsidiary, Professional Risk Management Services (PRMS).

"Through this transaction, we are enhancing an excellent program and strengthening it even more," said APA President Daniel Borenstein, M.D. "APA members will continue to have access to the kind of professional liability insurance protection that is essential in the increasingly complex environment in which psychiatrists now practice, provided through a strong, stable, and competitive program."

Coverage will now be offered through a program sponsored by PPG and endorsed by APA. "One of PPG’s functions as the program’s sponsor will be to serve as an ombudsman for program participants," continued Borenstein.

PRMS will continue to administer the professional liability insurance program and underwrite applications for coverage, provide customer service, manage claims, and provide risk management consultation and education, just as it has done since 1986.

The relationship with Legion is not new to APA members: Legion has been the primary carrier for APA’s professional liability insurance program since 1988. Transatlantic Reinsurance Company, a top-rated U.S. reinsurer, will continue to provide the reinsurance for the policies issued by Legion.

Legion has an A rating (excellent) by A.M. Best Company and A+ by Standard and Poor’s. Legion is a subsidiary of Mutual Risk Management Ltd., which is listed on the New York Stock Exchange.

"PPG is an independent corporation that is governed and operated by psychiatrists," Levenson said. "As sponsor of the program, PPG is in a position to offer advice to the carriers on psychiatric practice issues and other program-related matters."