Method and apparatus for deterring frivolous professional liability claims

• US 6,272,471 B1
• Filed: 08/02/1999
• Issued: 08/07/2001
• Est. Priority Date: 08/02/1999
• Status: Expired due to Term

• Current Assignee: Medical Justice Corporation
• Original Assignee: Medical Justice Corporation
• Inventors: Segal, Jeffrey J.
• Primary Examiner(s): Millin, V.
• Assistant Examiner(s): Rosen, Nicholas David
• Application Number:
  US09/365,437
• Time in Patent Office: 736 Days
• Field of Search: 705/4, 283/54
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A plan of countersuit insurance provided to professionals, possibly as part of or along with their professional liability insurance, deters frivolous professional malpractice claims. The plan of insurance pays legal costs of countersuits for improper prosecution when a frivolous claim has been made and, preferably, tried to a judgment for the accused professional, and an objective review concludes that the claim was frivolous. As part of the insurance plan, the names of covered professionals are posted on a publicly accessible database. If a potential plaintiff or his or her attorney finds a potential defendant'"'"'s name on the database, it may be a deterrent to filing weaker claims that might be viewed as frivolous. Upon approval of an applicant for such countersuit insurance, the applicant'"'"'s name is posted to a public database such as a central database on a World Wide Web site, or it is posted to an in-house database at the insurance carrier, which is accessible, along with other carriers'"'"' databases, through a central search engine on a World Wide Web site. Instead of, or in addition to, access via the Internet, access can be provided through a dial-up facility.

Claims

1. A method of deterring prosecution of frivolous professional liability claims against professionals, said method comprising:

offering to professionals a plan of insurance for paying legal costs of prosecuting an improper prosecution claim against a proponent of a frivolous professional liability claim;

receiving applications from professionals for said insurance;

accepting professionals, from whom said applications are received, for coverage under said plan of insurance;

maintaining a database of professionals covered under said plan of insurance;

linking said database to a publicly-accessible data communications interface for viewing and searching by any member of the public; and

publicizing existence of said database.

2. The method of claim 1 wherein said linking comprises linking said database to a public data network.

3. The method of claim 1 further comprising, for each professional accepted for coverage under said plan of insurance, printing a certificate evidencing said coverage.

4. The method of claim 1 further comprising:

accepting reports, from covered professionals, of professional liability claims, including data regarding said professional liability claims and disposition thereof; and

for each report received of a professional liability claim from one of said covered professionals;

flagging said report for review for making a determination, based on said data regarding said claim and disposition thereof, of whether said reported professional liability claim is frivolous, and

on completion of said review, when said determination is that said reported professional liability claim is frivolous, authorizing filing of a lawsuit by or on behalf of said one of said covered professionals for improper prosecution against a proponent of said frivolous professional liability claim.

5. The method of claim 4 further comprising disbursing funds to pay costs of said lawsuit.

6. Apparatus for deterring prosecution of frivolous professional liability claims against professionals, said apparatus comprising:

an offering unit for offering to professionals a plan of insurance for paying legal costs of prosecuting an improper prosecution claim against a proponent of a frivolous professional liability claim;

an application receiving unit for receiving applications from professionals for said insurance;

an application processing unit for processing said received applications and accepting professionals, from whom said applications are received, for coverage under said plan of insurance;

storage linked to said application processing unit for maintaining a database of professionals covered under said plan of insurance; and

a communications unit for linking said database to a publicly-accessible data communications interface for viewing and searching by any member of the public, existence of said database being publicized.

7. The apparatus of claim 6 wherein said communications unid links said database to a public data network.

8. The apparatus of claim 6 further comprising a printer for printing a certificate evidencing said coverage for each professional accepted for coverage under said plan of insurance.

9. The apparatus of claim 6 further comprising:

a claims unit for accepting reports from covered professionals of professional liability claims, including data regarding said claims and disposition thereof;

a claims review unit comprising an output device and an input device, wherein;

for each report received of a professional liability claim from one of said covered professionals;

said output device flags said report for review for making a determination, based on said data regarding said claim and disposition thereof, of whether said reported professional liability claim is frivolous, and

on completion of said review, said determination is entered into said input device; and

an authorization unit for, when said determination is that said reported professional liability claim is frivolous, authorizing filing of a lawsuit by or on behalf of said one of said covered professionals for improper prosecution against a proponent of said frivolous professional liability claim.

10. The apparatus of claim 9 further comprising a disbursement unit for disbursing funds to pay costs of said lawsuit.

11. The apparatus of claim 10 wherein said disbursement unit comprises an electronic funds transfer unit.

12. The apparatus of claim 10 wherein said disbursement unit comprises a check printer.

13. The apparatus of claim 9 wherein said claims review unit further comprises a claim evaluation unit for:

receiving from said output device said flagged report, including said data regarding said claim and disposition thereof;

evaluating said data to make said determination; and

transmitting said determination to said input device.

14. A system for deterring prosecution of frivolous professional liability claims against professionals, said system comprising:

means for offering to professionals a plan of insurance for paying legal costs of prosecuting an improper prosecution claim against a proponent of a frivolous professional liability claim;

means for receiving applications from professionals for said insurance;

means for processing said received applications and accepting professionals, from whom said applications are received, for coverage under said plan of insurance;

storage means linked to said application processing means for maintaining a database of professionals covered under said plan of insurance; and

means for linking said database to a publicly-accessible data communications interface for viewing and searching by any member of the public, existence of said database being publicized.

15. The system of claim 14 wherein said linking means links said database to a public data network.

16. The system of claim 14 further comprising means for printing a certificate evidencing said coverage for each professional accepted for coverage under said plan of insurance.

17. The system of claim 14 further comprising:

means for accepting reports from covered professionals of professional liability claims, including data regarding said claims and disposition thereof;

means for reviewing claims comprising output means and input means, wherein;

for each report received of a professional liability claim from one of said covered professionals;

said output means flags said report for review for making a determination, based on said data regarding said claim and disposition thereof, of whether said reported professional liability claim is frivolous, and

on completion of said review, said determination is entered into said input means; and

means for, when said determination is that said reported professional liability claim is frivolous, authorizing filing of a lawsuit by or on behalf of said one of said covered professionals for improper prosecution against a proponent of said frivolous professional liability claim.

18. The system of claim 17 further comprising means for disbursing funds to pay costs of said lawsuit.

19. The system of claim 18 wherein said means for disbursing comprises electronic funds transfer means.

20. The system of claim 18 wherein said means for disbursing comprises a check printer.

21. The system of claim 17 wherein said means for reviewing claims further comprises means for:

receiving from said output means said flagged report, including said data regarding said claim and disposition thereof;

evaluating said data to make said determination; and

transmitting said determination to said input means.