Supreme Court Says Settlements for 'Silent PPO' Cases Weren't Excluded from E&O Coverage

The Delaware Supreme Court last week ruled that two professional liability insurance carriers might be on the hook to contribute to the $159 million settlements that their clients had entered into over their alleged operation of "Silent PPO" networks in Louisiana. Preferred provider organizations began cropping up nationally in the early 1990s, as an alternative to the traditional fee-for-service payment model for medical care. The PPOs essentially act as intermediaries between health insurance companies and medical providers. Insurance companies contract with the PPO to gain acces...