This situation results from the demutualization of the non-reactive Medical Liability Mutual Insurance Company (MLMIC) as part of a conversion plan (the „Plan“) approved by the New York Department of Financial Services on May 31, 2018. Under the plan, MLMIC was transformed into an equity insurance company by a mutual insurance company, and part of that process required that certain MLMIC counterparties be distributed to the underwriters. The applicants Mario N. Cordaro, D.O., Patricia M. Deitz, M.D., Enas E. Hanna, D.O., Nigel I. Henry, M.D., Richard T. Rindfuss, M.D., and Jean Lesly Schmidt, M.D. (all „applicant“) are all physicians employed by ACPNY since January 1, 2013. In each of its respective employment contracts, ACPNY agreed to „grant medical liability“ at no cost to the physician. NYSCEF Doc.
No. 60, 37.C; 61, 47.C; 62, 5.C; 63, 42.C; 64, 75.C; 65, 165.C (employment contracts). ACPNY established, through sworn assurances and evidence showing that, as administrator of the policies for the policies at issue, she received an insurance policy for the wrongs committed for each applicant and that she paid all the premiums due and due. Neither the employment contract nor the MLMIC Policy Administrator – Designation – /gold Change Agreement contained a language indicating that the defendants renounced, transferred or transferred to another person their participation in the property of the policy. Given that the applicants apparently never designated the applicant for the cash payment, it is not surprising that the applicant did not make use of the objection procedures and the trust proceedings. Instead, the complainants asked the defendants to „execute a transfer agreement that transfers your right to the cash benefit to practice.“ Such an explicit recognition of the defendant`s right to consideration undermines the assertion that they illegally converted it into itself or unjustifiably enriched it. The transfer application is also an implicit confirmation that the defendants never designated the plaintiff for the cash payment.