Tail Coverage

Continuation of professional liability coverage under the Health Care Provider Insurance Availability Act (HCPIAA) is statutory. The law provides for continued coverage if a claim is made that is attributable to professional services rendered when the health care provider was in compliance with the HCPIAA and the health care provider has cancelled his / her basic insurance coverage because they are no longer rendering professional services.

This continued professional liability coverage or “tail coverage” provides coverage for future claims or suits made against an inactive health care provider for professional services rendered while the health care provider was active. The amount of Fund tail coverage available for a claim or suit is the amount of Fund coverage in effect on the date of the incident giving rise to the claim plus the minimum primary limits. For example, if you initially selected the $800,000 per claim level of HCSF coverage and maintained it, when you discontinue your Kansas practice you will have $1.0 million per claim tail coverage via the Health Care Stabilization Fund. There is no additional premium or surcharge required.

The Health Care Stabilization Fund Board of Governors will verify eligibility for Fund tail coverage. The Kansas Board of Healing Arts and the Kansas Board of Nursing have statutory authority to issue inactive or exempt licenses. Licensees with inactive or exempt licenses are not required to comply with the HCPIAA. Inactive or exempt licenses may be converted back to active status if the health care provider decides he or she wishes to resume rendering professional services in the State of Kansas. If the inactive or exempt license is not renewed, the license will be cancelled and the HCSF tail coverage will continue.

For health care providers who were residents of Kansas while active, the Fund provides continued coverage for professional services rendered inside or outside the state of Kansas.  If suit is filed in Kansas the plaintiff is required by law to serve the Fund with a copy of the petition.  If you receive notice of a claim filed in a state other than Kansas, it is important for you to notify the Fund immediately.  It is strongly recommended that you immediately forward to the Fund any notices of claims or suits arising out of your professional practice.

Health care providers who did not reside in Kansas while active are afforded the Fund’s continuing coverage only for professional services rendered in the state of Kansas.  Non-residents are encouraged to immediately forward notices of claims or suits arising out of their professional practice in Kansas.

We encourage you to retain past insurance records for future reference should any professional liability claim or suit be made against you.  If a suit should arise, you may also desire to notify the insurance company that provided your primary professional liability insurance while you were actively engaged in rendering professional services as a health care provider.  If your primary carrier was notified of a claim prior to the expiration of the policy, they may have coverage for the suit.  This is particularly important in light of the provisions of the Fund law stating that the Fund will be excess of any other applicable professional liability insurance.

If you have additional questions regarding the Health Care Stabilization Fund, please send an email message to hcsf@ks.gov or call 785-291-3777.