MIIX Insurance Management Resigns

NU Online News Service, Oct. 1, 4 :27p.m. EDT?The MIIX Insurance Company, a Lawrenceville,N.J.-based medical malpractice carrier that was in voluntaryrunoff, has been put under state supervision for rehabilitation andits management has resigned.[@@]

New Jersey Superior Court in Trenton granted the order ofrehabilitation on Sept. 28 naming the commissioner of the NewJersey Department of Banking and Insurance as rehabilitator withimmediate and exclusive control over the business and property ofMIIX Insurance.

All directors and officers of MIIX Insurance and of its twosubsidiaries--Lawrenceville Holdings, Inc. and MIIX InsuranceCompany of New York--resigned from their positions, effective Sept.28.

Under the order, the company--a subsidiary of The MIIX Group,Inc., The MIIX Group and New Jersey State Medical Underwriters,Inc.--will continue to provide administrative services to MIIXInsurance under the current management services agreement untilterminated by the department after appropriate notice.

MIIX Group said the order does not stay payment of claims forany litigation currently pending against MIIX Insurance or itsinsureds and does not bar claimants from filing new actions againstMIIX Insurance insureds. However, the order does prohibit any newlegal action or new claim directly against MIIX Insurance withoutpermission of the court.

Before it began piling up losses, the MIIX Group insured about5,000 physicians and other medical providers and more that 20hospitals and health care organizations.