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Actuaries Contend Report on Insurance Is Flawed
The Medical Malpractice subcommittee of the American Academy of Actuaries (AAA) called into question the validity of a report commissioned by the Center for Justice and Demo-cracy, and issued in July 2005, that blamed the bulk of any medical malpractice insurance crisis on the insurance industry. The report, “Falling Claims and Rising Premiums in the Medical Malpractice Insurance Industry,” was characterized in an AAA statement as “incomplete, actuarially unsound and misleading.” The group's statement noted that, “Historically, the subcommittee has not commented on individual medical liability studies,” but that its public response to the report, “is an exception because of the public attention [the report] has received, the apparent credibility ascribed to its conclusions and, in our view, the poor quality of the analysis.” Before relying on the report, the AAA recommends users seek advice from a qualified actuary.
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