Jump directly to the content

Insurance

Can a church-established health insurance plan that suffers huge losses sue its CPA firm for malpractice?

Can a church-established health insurance plan that suffers huge losses sue its CPA firm for malpractice? That was the question before a Florida state appeals court in a recent case. In 1968, the Catholic Archdiocese of Miami established a health insurance plan for the clergy and lay employees of the archdiocese.

A board of trustees was created to oversee the plan, and an administrator was appointed. Each year, the trustees and administrator determined the level of premiums that had to be made to the plan in order to cover anticipated medical expenses. In 1969, the trustees purchased a "stop-loss" insurance policy from Lloyd's of London which would insure against the risk that in any year the amount of claims paid by the plan would exceed the premiums received.

Each year before issuing the stop-loss policy, Lloyd's required the trustees to submit detailed information about ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
  • None
Posted:
  • November 1, 1989