WO2001009797A1

WO2001009797A1 - System for insurance paying for counterclaims in the event of improper lawsuits

Info

Publication number: WO2001009797A1
Application number: PCT/US2000/021045
Authority: WO
Inventors: Jeffrey J. Segal
Original assignee: Individual
Current assignee: Individual
Priority date: 1999-08-02
Filing date: 2000-08-02
Publication date: 2001-02-08
Anticipated expiration: 2002-02-02
Also published as: AU6510600A

Abstract

A computer system for supporting a plan of counterclaim insurance provided to professionals, perhaps as part of their professional liability insurance, deters frivolous malpractice claims. Potential plaintiffs may be deterred from bringing weak cases (144); when cases are brought (146), the system evaluates whether the case was settled (31), whether the court's judgement was favorable to the defending physician or other professional (32), and whether the case was frivolous (33). If the case is considered frivolous, funding of a countersuit can be authorized (35).

Description

SYSTEM FOR INSURANCE PAYING FOR COUNTERCLAIMS IN THE EVENT OFIMPROPER LAWSUITS

Copyright Notice A portion of this disclosure contains material which is subject to copyright protection The copyright owner has no obj ection to a statutory fair use of this material , as it appears in the files or records of any patent o fice , but otherwise reserves all copyright rights whatsoever

Background of the Invention

This invention relates to the reduction of frivolous professional liability claims More particularly, this invention relates to the provision of insurance to pay the costs of counter litigation, especially, but not necessarily only, for malicious prosecution of frivolous professional liability claims, including publicizing the identities of holders of such insurance as a deterrent Still more particularly, the present invention is in the field of digital electrical apparatus and methods for making and using the same , and products produced thereby More particularly , the present invention is directed to a digital electrical apparatus and method for data processing, data management, and computer communications, having particular utility m the fields of insurance, accounting, marketing, etc Still more particularly, the present invention pertains to a digital electrical apparatus and method for making and using it to process and produce digital electrical signals relating to insurance coverage for funding counterl ltigation , counterclaim , and countersuit costs , or other counter proceedings

As society has become more litigious, any reason for people to amicably resolve their differences by other avenues would be worthwhile Unfortunately, people have found themselves defending litigation more frequently, and sometimes counter-claiming or countersumg where they would have otherwise walked away

Consider an example Professionals (including physicians, attorneys, architects and others) have found themselves defending an increasing number of professional liability claims brought by patients or clients unhappy with the quality of the professional services rendered, or with the results of those services In some cases, charges of professional misconduct are warranted However, in many cases, the charges are unwarranted, despite competent services rendered at or above the appropriate level of care , concern and attention , and without fault on the part of the professional , the desired result may not be achieved n all cases Nevertheless, to avoid the disruption of a protracted legal action , and to control the risk of uncertain legal costs and expenses associated with unpredictable jury outcomes, such frivolous cases are frequently settled by the accused professionals for their nuisance value

A frivolous charge of professional misconduct may be brought on behalf of an unhappy patient or client simply because there is no adequate disincentive not to do so Although it may be possible, if the frivolous nature of the complaint can be proven, to pursue counter litigation (for example, a "countersuit" for wrongful or malicious prosecution against the proponents of frivolous claims, e g , the patient/client or his or her attorney) , such countersuits frequently are not instituted or pursued because of the commitment m time , and particularly in legal fees, that is involved By "countersuit" is meant a separate legal action brought, as countersuit plaintiff, by the accused professional who was defendant in the original lawsuit, against, as countersuit defendant, the plaintiff in the original lawsuit or another proponent of the original lawsuit, including the original plaintiff's attorney or expert witness, "countersuit" could also include a counterclaim in the original lawsuit "Improper prosecution" is meant to include any cause of action under one or more of the following legal theories malicious prosecution, abuse of process, intentional infliction of emotional distress defamation, pπma facie tort barratry or any other legal theory that may be appropriate

Although these problems affect anyone and many different professional fields as discussed above, the problem is particularly acute in the case of physicians Therefore, the remainder of this specification w ll be addressed to medical malpractice counterclaim insurance , it being understood that the discussion applies equally well to other counterclaims, including separate countersuits and non-court activity, such as expert witness or attorney disciplinary proceedings, administrative action, presentations to prosecuting attorneys, and the like The discussion also applies to different types of legal subject matter, professional liability claims, and insurance

Even though medical malpractice claims usually are covered by insurance , they have many negative implications First, one's competence is challenged and one ' s reputation is damaged , threatening one ' s future livelihood Second, the stress of practicing medicine is increased Third, the physician-patient relationship is damaged Fourth, physicians are encouraged to practice cost- inefficient defensive medicine Fifth, the physician is required to prepare for the lawsuit, spending time away from the office that does not generate income Sixth, the premiums for malpractice liability insurance may increase, possibly even after a successful defense Seventh, the physician is placed in a vulnerable and uncomfortable position as a witness Eighth, the physician may be pitted against another physician (a) in trying to allocate blame if more than one physician was involved , or (b) where another physician appears as an expert witness on behalf of the plainti f Ninth , stress develops at home between the physician and his or her spouse and family Tenth, the joy is taken out of practicing medicine Eleventh, a judgment over the maximum coverage limits of a physician s malpractice insurance policy can bankrupt the physician

For these reasons it would be desirable to be able to provide an improved deterrent to the filing and prosecution of litigation especially frivolous professional liability claims

Summary of the Invention

It is an object of this invention to attempt to provide an improved deterrent to the filing and prosecution of litigation, especially frivolous professional liability claims

It is another object of this invention to provide computer support for the improved deterrent

It is yet another object of this invention to provide an integrated system of multiple computer support systems for efficiently supporting the improved deterrent In accordance with this invention, there is provided a method of deterring litigation claims such as prosecution of frivolous professional liability claims against professionals The method includes offering to professionals a plan of insurance for paying costs of prosecuting a claim against a proponent of a frivolous professional liability claim Applications are received from professionals for the insurance , including by means of one or more of the computer systems discussed subsequently herein

Professionals (l e , those from whom the applications are received) are provided with insurance coverage by significant computer support, including support for determining a suitable premium structure , generating insurance documentation , accounting , marketing , intra and inter-computer data processing, handling claims, updating premium structures , and auditing f nancial operations A database of professionals covered under the plan of insurance is maintained as professionals are accepted into and added to the plan of insurance The database is linked to a publicly-accessible communications interface for viewing by any computer of a member of the public, and the existence of the database is publicized

Accordingly, the invention includes apparatus, method for making the apparatus , and method for using the apparatus, articles of manufacture (e g , program with storage medium) , data base and data structures and necessary intermediates

A broad view of the invention is as follows A computer- implemented method for determining a premium structure for insurance providing coverage including counterclaim coverage, the method comprising the steps of receiving actuarial data and census data, at least one of said data including indicia of litigation frequency and cost , computing a premium structure , based upon the actuarial data and the census data , for the insurance providing coverage including counterclaim coverage , and generating insurance documentation including premium structure

"Legal costs" means attorney's fees, as well as other expenses or disbursements (including, but not limited to , court costs , photocopy expenses , expert witness fees , etc ) that may or may not be billed through the attorney In the preferred embodiment, "legal costs" excludes any ines , penalties or j udgments that may arise from a counter-countersuit Brief Description of the Drawings

The above and other obj ects and advantages of the invention will be apparent upon consideration of the following detailed description, taken m conjunction with the accompanying drawings, in which like reference characters refer to like parts throughout, and m which

FIG 1 is a flow diagram representing a preferred embodiment of a process according to the present invention from the initial application by a physician for coverage through the completion of a countersuit brought on behalf of that physician ,

FIG 2 is a flow diagram of the application/ issuance module of the process of FIG 1 including database posting according to the invention FIG 2A is flow diagram of an alternative embodiment of the database posting shown in FIG 2,

FIG 3 is a flow diagram of the claims processmg/countersuit qualification module of the process of FIG 1 , FIG 4 is a flow diagram of the countersuit administration module of the process of FIG 1 ,

FIG 5 is a schematic view of a preferred embodiment of a local hardware system for implementing the present invention , FIG 6 is a schematic view of a preferred embodiment of a systemic hardware system for implementing the present invention ,

FIG 7 is a flow diagram for an Intermediary Computer System for the present invention , FIG 8 is a flow diagram for a Carrier Computer

System for the present invention ,

FIG 9 is a flow diagram for an Actuary Computer System for the present invention

FIG 10 is a flow diagram for a Broker Computer System for the present invention ,

FIG 11 is a flow diagram for respective Marketing Computer Systems for the present invention , FIGS 12a and 12b (hereinafter collectively referred to as FIG 12) are a data processing map for the Intermediary Computer System for the present invention,

FIGS 13a and 13b (hereinafter collectively referred to as FIG 13) are a data processing map for the Actuary Computer System for the present invention ,

FIG 14 is another data processing map for the Actuary Computer System for the present invention ,

FIG 15 is still another data processing map for the Actuary Computer System for the present invention,

FIG 16 is yet another data processing map for the Actuary Computer System for the present invention ,

FIG 17 s an additional data processing map for the Actuary Computer System for the present invention , FIG 18 is a further data processing map for the

Actuary Computer System for the present invention ,

FIGS 19a, 19b, 19c and 19d (hereinafter collectively referred to as FIG 19) are a data processing map for the Carrier Computer System for the present invention ,

FIGS 20a and 20b (hereinafter collectively referred to as FIG 20) are another data processing map for the Carrier Computer System for the present invention ,

FIG 21 is still another data processing map for the Carrier Computer System for the present invention,

FIG 22 is yet another data processing map for the Carrier Computer System for the present invention ,

FIGS 23a and 23b (hereinafter collectively referred to as FIG 23) are an additional data processing map for the Carrier Computer System for the present invention ,

FIGS 24a and 24b (hereinafter collectively referred to as FIG 24) are a further data processing map for the Carrier Computer System for the present invention FIGS 25a and 25b (hereinafter collectively referred to as FIG 25) are still a further data processing map for the Carrier Computer System for the present invention , FIGS 26a and 26b (hereinafter collectively referred to as FIG 26) are a data processing map for the Underwriting Computer System for the present invention ,

FIGS 27a and 27b (hereinafter collectively referred to as FIG 27) are another data processing map for the Underwriting Computer System for the present invention ,

FIG. 28 is a data processing map for the Claims Handling Computer System for the present invention,

FIGS 29a and 29b (hereinafter collectively referred to as FIG 29) are a data processing map for the Front End Network Gateway Computer System for the present invention ,

FIGS 30a and 30b (hereinafter collectively referred to as FIG 30) are a data processing map for the Broker ' s Computer System for the present invention ,

FIGS 31a and 31b (hereinafter collectively referred to as FIG 31) are a data processing map for the Intermediary's Marketing Computer System for the present invention , FIGS 32a and 32b (hereinafter collectively referred to as FIG 32) is a data processing map for the Carrier ' s Marketing Computer System for the present invention ,

FIG 33 is a data processing map for the Broker's Marketing Computer System for the present invention ,

FIG. 34 is a data processing map for Terminal Computer Systems for the present invention ,

FIGS 35a and 35b (hereinafter collectively referred to as FIG 35) are a data processing map for the Insured 's Attorney's Computer System for the present invention ,

FIG 36 is a data processing map for the Insured 's Computer System for the present invention,

FIGS 37a and 37b (hereinafter collectively referred to as FIG 37) are a data processing map for the Accounting Computer System for the present invention ,

FIGS 38a and 38b (hereinafter collectively referred to as FIG 38 is a data processing map for the Third Party Database Computer System for the present invention

FIGS 39a and 39b (hereinafter collectively referred to as FIG 39) are another data processing map for the Third Party Database Computer System for the present invention

FIG 40 is a home page for the present invention

FIG 41 is a web page for the present invention

FIG 42 is another web page for the present invention

FIGS 43a and 43b (hereinafter collectively referred to as FIG 43) are a web page for the present invention

FIG 44 is another web page for the present invention

FIG 45 is a first specimen of representative output generated in connection with determining a premium structure for the present invention

FIG 46 is a second specimen of representative output generated in connection with determining a premium structure for the present invention

FIG 47 is a third specimen of representative output generated in connection with determining a premium structure for the present invention FIG 48 is a forth specimen of representative output generated in connection with determining a premium structure for the present invention

FIG 49 is a fifth specimen of representative output generated in connection w th determining a premium structure for the present invention

FIG 50 is a sixth specimen of representative output generated in connection with determining a premium structure for the present invention

FIGS 51a and 51b (hereinafter collectively referred to as FIG 51) are a seventh specimen of representative output generated m connection with determining a premium structure for the present invention FIG 52 is a eighth specimen of representative output generated n connection with determining a premium structure for the present invention ,

FIG 53 is a ninth specimen of representative data useful n connection with determining a premium structure for the present invention ,

FIG 54 is a tenth specimen of representative data useful in connection with determining a premium structure for the present invention , FIG 55 is an eleventh specimen of representative data useful in connection with determining a premium structure for the present invention ,

FIG 56 is a twelfth specimen of representative data useful in connection with determining a premium structure for the present invention

FIG 57 is a thirteenth specimen of representative data useful in connection with determining a premium structure for the present invention ,

FIG 58 is a fourteenth specimen of representative data useful in connection with determining a premium structure for the present invention

FIG 59 is a specimen of representative marketing documentation including a graphical representation of a pay out pattern for the present invention and FIG 60 is a fifteenth specimen of representative data useful in connection with determining a premium structure for the present invention

Detailed Description of the Invention

According to the present invention, the incidence of litigation (especially medical malpractice claims) is reduced because a credible threat exists of a funded counterclaim (claims within the suit , or a separate countersuit) for prosecution of a frivolous claim That threat is created and backed up by the availability of "counterclaim insurance" which, under appropriate conditions, will pay the costs of any counter litigation (e g , a counterclaim within the original suit, or a separate countersuit) against the proponent of a claim and/or complaint Potential defendants in such a counterclaim could include the original plaintiff (1 e , in a medical malpractice context , the patient who had claimed injury) , the original plaintiff's attorney, and any expert on behalf of the original plaintiff The insurance of the invention could be offered as a separate insurance policy, but more preferably could be offered as a rider , e g , to a standard medical malpractice insurance policy Once an applicant -- e g , a physician -- has been accepted for coverage under a policy or rider of insurance according to the present invention, the insured ' s name and other data would be entered into the carrier ' s computer system In addition to all the standard processing that would normally be carried out in connection with the issuance and support of a policy of insurance, the system would copy the insured ' s name to a database of covered individuals to be publicized It is believed that the publicizing of names of those insured, such as physicians covered by the insurance, w ll deter the filing of such claims as frivolous medical malpractice claims , because those who might bring such claims would have to consider the possibility that the physician might prevail in defending against the claim and would then institute a countersuit, e g , for malicious prosecution, or add a counterclaim for malicious prosecution to the original suit

Note again that the counterclaim insurance could work the other way around For example , if an attorney files suit for non-payment of a legal bill , the insurance policy could fund a malpractice counterclaim or separate proceeding against the attorney In providing an incentive not to litigate , the insurance could fund completely unrelated causes of action For example, a slip-and-fall complaint by a sailor could trigger a maritime countersuit

The database of names of those covered preferably will be available to the public via a public data network such as the Internet, including, but not limited to, the World Wide Web However , the database could also be available on a private network, or on a dial-up 'BBS" ("bulletin board system") Preferably, all providers of counterclaim insurance would make their databases of those covered available at a common site but individual providers or groups of providers may maintain separate sites As explained belo , the site or sites could include the actual database , or could be a search engine linked to the database of each provider participating in the particular site

It is preferred that public access to the database be without cost to the computer-querying member of the public, so as not to discourage potential plaintiffs or their attorneys from querying the database In the case of a dial-up or BBS embodiment a toll-free telephone number can be provided

In the most particularly preferred embodiment of the invention, each insurance carrier or broker would maintain its own database of covered individuals linked to, and accessible by, a common search engine on a single World Wide Web site on the Internet or other front end network gateway Alternatively , each insurance carrier or broker would upload the names from its proprietary database to a single database accessible from a single World Wide Web site According to any of these alternatives , those who query the database would be advised to do so again after a suitable interval (e g , a few days later) n case a covered insured ' s name is in the process of being added to the database or, particularly m the case where the public site is a common search engine that searches the databases of several insurance companies to which t is linked because the connection to one or more of the linked databases may be temporarily inoperative

Whatever public access vehicle is chosen, its existence would be publicized by advertisements, e g , m the general press and in publications aimed at attorneys who handle plaintiff's cases, such as medical malpractice litigation The advertising would encourage potential plaintiffs or their representatives to check the database for the name of any potential defendant prior to initiating legal action It then would be foolish for anyone to initiate a frivolous medical malpractice action without checking the database

Counterclaim insurance according to the invention can be offered either as a separate policy or as a rider preferably to a professional (e g , medical) malpractice liability insurance policy Either way, n a preferred embodiment, if a counterclaim, claim, countersuit, suit, administrative proceeding, or the like is brought under the policy, and damages are awarded against the proponent then the insurer preferably will collect a portion (e g between 30% and 60%) of the damages as compensation for funding the suit, and to cover administrative costs of administering the program and funding counterclaims or countersuits for all policyholders Therefore, m a preferred embodiment, any premium charged to policyholders will be minimal Indeed, if insurance according to the invention is offered as a rider to a malpractice insurance policy, there may not need to be any additional charge beyond the premium charged for the underlying malpractice insurance policy, which would provide for the overall coverage including the counterclaim coverage This is because the damages recovered in successful counterclaims , plus the reduction in nuisance settlement payments on underlying malpractice claims , preferably would offset for the costs of offering and administering the counterclaim insurance program and the costs of prosecuting counterclaims Of course , in an alternative embodimen , the carrier may allow the physician to retain all of the counterclaim recovery Although this may necessitate the charging of a premium for counterclaim coverage it may not f the counterclaim deterrent effect results m substantial savings to the carrier on malpractice claims

In addition, a preferred embodiment, the requirements for eligibility for counterclaim insurance benefits w th respect to a particular claim would be that the underlying claim , such as a medical malpractice lawsuit, proceeded to a favorable judgment for the covered insured without being settled and without otherwise being terminated short of judgment, and that an objective review of the underlying claim concludes that the underlying claim was frivolous Moreover, almost anyone who desired the added coverage would be eligible For example, m the medical malpractice context, at one extreme is the "good" physician whose competence is beyond question and who is rarely sued Such a physician is a good risk for counterclaim insurance because the physician will rarely if ever , make a claim for counterclaim insurance benefits

At the opposite extreme is the bad' physician who is sued frequently and frequently settles or loses This physician also is a good risk for counterclaim insurance, for the following reasons In a preferred embodiment, the requirements for eligibility for insurance benefits with respect to a particular claim are that the underlying lawsuit proceeded to a favorable termination for the covered individual or company In another preferred embodiment , the benef t requirements can be more restrictive, e g , favorable judgment or even favorable _judgment without being settled In yet another preferred embodiment the benefit requirements can be even more restrictive e g that an independent review of the underlying claim concludes that the underlying claim was frivolous Therefore , depending on the restπctiveness of the benefits, the "bad" physician who settles the underlying claim would not be eligible for benefits as to that claim Howeve , for the cases where the "bad" physician does not settle and prevails on the underlying claim there is no reason why that physician should not be eligible for benefits if the malpractice claim was frivolous The worst risk from the point of view of the insurer in the medical malpractice example could be the physician who is sued frequently but always prevails Preferably, the insurer s share of the recovery in a successful counterclaim would be available to fund other counterclaims on behalf of other covered physicians, spreading the cost of counterclaims over all covered physicians In the case of a physician who is sued frequently, always wins, and then always counterclaims, any counterclaim recoveries would go toward funding subsequent counterclaims on behalf of the same physician , possibly without leaving enough to fund counterclaims on behalf of other covered physicians Still , it is also possible that the recoveries would have a punitive component such that the recoveries would be well in excess of the cost

As discussed above , benefits can be structured so that they are not available in connection with an underlying claim that is settled , or , of course , lost Moreover, even if a case is won, it is still possible that the underlying claim was not frivolous Therefore, depending on the benefit structuring , as discussed above , as part of the plan of insurance, an independent review of the underlying claim , to determine whether or not it could be proved to have been rivolous , is conducted when a claim for counterclaim benefits is made

In a preferred embodiment, the independent review is conducted by an attorney retained by the counterclaim insurance carrier The attorney could be an -house attorney , but could be one of several outside attorneys retained by the carrier for this purpose Alternatively , it may be possible to develop a set of criteria that could allow an objective determination of the qualification for benefits to be made , at least in the first instance , by a computer, based, e g , on responses by the physician to a questionnaire developed for th s purpose If a computer is used to make the initial determination of fπvolousness , then preferably there is opportunity for human review of that decision In one embodiment, human review would come only if the determination were made that there was no fπvolousness , in which case the covered physician could ask for a review In another embodiment, the computer determination would include a quantitative ranking , and whenever that ranking was not overwhelmingly toward the determination that was made (either for or against frivolousness) a review would be conducted As a failsafe , any determination of frivolousness would receive a de facto review by the attorney to whom the counterclaim was assigned, as part of his or her preparations for bringing the counterclaim

In carrying out a preferred embodiment, as viewed from a computer science standpoint, there is a computer- assisted or computer- implemented method for determining a premium structure for insurance providing coverage including funding counterclaim (l e , both counterclaim litigation within the context of one suit and separate countersuit litigation, or even a motion, etc responsive to a frivolous position) The invention includes apparatus (machine) , method of making and method of using the same, an article of manufacture (e g , software on a storage medium such as a disk) , data base , data structures, and necessary intermediates, all of which can be summarized with reference to the method for the sake of brevity The method include receiving actuarial data and census data, at least one of said data including indicia of litigation frequency and cost, the data n a predetermined format corresponding to computer operations , calculating a premium structure , based upon the actuarial data and the census data, for the insurance, and generating insurance documentation including premium structure

More particularly , the step of receiving the actuarial data and census data can be carried out at an actuarial or other computer system , the step of calculating a premium structure can be carried out at a carrier computer system located remotely from the actuarial or other computer system , and there can further be the step of communicating the actuarial data and census data from the actuarial computer system to the carrier computer system by a computer-to-computer communications device, such as a modem or the like In any of the embodiments, the there can be further steps of receiving premium payment data for the insurance, receiving claim data for the insurance, calculating an updated premium structure , based upon the claims data, for the insurance, and generating documentation including the updated premium structure for the insurance

More over , the step of generating can be carried out by a carrier computer system and the step of receiving the premium payment data can be carried out by inputting information (preferably) at a computer system remote from the carrier computer system and (preferably) by further including the step of communicating the information to the carrier computer system by a computer-to-computer communications device

Any of the embodiments can further include the steps of inputting broker information at the computer system remote from the carrier computer system , communicating the information to the carrier computer system , and calculating an updated premium structure based upon broker information

Again, n any of the embodiments the step of generating can be carried out by a carrier computer system and the step of receiving the claim and/or payment data can be carried out by inputting information (preferably) at a computer system remote from the carrier computer system and (preferably) by further including the step of communicating the information to the carrier computer system by a computer-to-computer communications device This is especially preferable in connection with calculating an updated premium structure based upon the claim information , say , from a claimant computer and payment data from an insured ' s computer system

Still again, in any of the embodiments, the invention can be carried out by further including the steps of receiving premium payment data for the insurance , the payment data including respective names corresponding to coverage by the insurance, posting the names and indicia of the coverage by the insurance on a front end network gateway to provide a warning at remote terminals , especially by using the Internet -- particularly the World Wide Web - - as the front end network gateway Additionally, any of the embodiments can further include the steps of receiving, at an intermediary computer (for example) , the actuarial data and census data , at least one of said data including indicia of litigation frequency and cost , the data in a predetermined format , and calculating, at the intermediary computer (for example) , a premium structure , based upon the actuarial data and the census data , for an independent verification of the premium structure

Also , in any of the embodiments , the actuarial data can include indicia of suits eliminated, reduced settlement cost for suits , defense cost , frequency of claims , the cost of the claims , reduction n medical malpractice cost, and/or indemnity savings

Note that, in any of the foregoing, calculating the premium structure can include calculating a premium cost for the counterclaim brought as a counterclaim, a separate countersuit, or an administrative complaint, especially for frivolous suit or litigation

All of the embodiments can be carried out by further including the steps of generating marketing documentation including a graphical representation of a pay out pattern corresponding to the insurance coverage , especially where the actuarial data is carried out with actuarial data including indicia of a reduction m medical malpractice cost However , as previously mentioned , the invention embodiments can be viewed such that the step of calculating the premium structure includes calculating a premium cost for the counterclaim brought as a countersuit to a professional malpractice cause of action, especially for litigation cost for really any frivolous litigation, including or not including counterclaim cost It is only preferred that the step of calculating the premium structure includes calculating a premium cost for the counterclaim brought as a medical malpractice cause of action

It s envisioned that in carrying out the foregoing method, there can be at least one digital electrical computer and data processing system comprising a digital electrical computer , an input device for inputting data electrically connected to the digital electrical computer, and an output device electrically connected to the digital electrical computer, wherein the digital electrical computer is controlled by a computer program to form a programmed digital electrical computer for processing input electrical signals , the input electrical signals being produced in response to information entered at the input device, the information including actuarial data and census data, at least one of said data including indicia of litigation frequency and cost, the data in a format specified by the computer program, the processing including modifying the input electrical signals into output electrical signals representing a proj ection of a premium structure , based upon the actuarial data and the census data , for insurance funding of a counterclaim, the output electrical signals being communicated to the output device which, n response to the output electrical signals, generates a depiction of the projection The foregoing computer system can be made by providing a digital electrical computer having a programmable processor, an input device for inputting data electrically connected to the digital electrical computer, an output device electrically connected to the digital electrical computer , programming the processor (preferably with an article of manufacture such as a program stored on memory such as a diskette) , to control the digital electrical computer for processing input electrical signals , the input electrical signals being produced n response to information entered at the input device The invention will now be described with reference to FIGS 1-60 FIG 1 shows an overview (more detail is shown in FIGS 2-4) of a preferred embodiment of the process 10 for administering the plan of insurance according to the present invention, in the context of medical malpractice countersuit insurance, it being understood that variants of process 10 can be used to administer other types of counterclaim insurance as discussed above Process 10 starts with module 11 , which s explained in more detail below Briefly, in module 11 a physician's application for coverage under a policy of countersuit insurance is made, accepted and processed and the countersuit insurance policy is issued if the application is approved As part of issuance of the policy, the covered physician's name is posted on a publicly accessible database as indicated at step 12

Next, process 10 proceeds to module 13 based on the occurrence of external events at 14 Briefly, in module 13, a covered physician, having been sued for malpractice as part of events 14, makes a claim for countersuit benefits , and the claims administration process is carried out to determine whether or not the physician is entitled to benefits If not, process 10 ends at 15

If in claim administration module 13 it is determined that the physician is eligible for countersuit benefits, then the funding for filing of a countersuit is authorized, and process 10 proceeds to countersuit administration module 16, n which the progress of the countersuit s monitored , attorneys ' bills are paid and the carrier's share of any damages awarded is collected Process 10 then ends at 17

Application and issuance module 11 is shown m more detail in FIG 2 Module 11 begins at step 20 where the physician submits an application for countersuit insurance The application data preferably are filled in by the physician on a form (not shown) and then preferably entered into the insurer s data processing system 510, e g at keyboard 528 (see FIG 5) Alternatively, and ideally, the application would be submitted by computer, for example, over the Internet, although government insurance regulations may interfere with online applications, particularly if they originate outside the jurisdiction m which the insurer is located If an electronic application can be made available on a publicly accessible data network such as the Internet the application data can be entered by the physician into system 510 directly at 534 via modem or router 532 (as examples of computer-to-computer communications devices) As mentioned above, countersuit insurance according to the invention can be offered as a stand-alone policy of insurance or as a rider to a malpractice insurance policy At test 21 , it is determined (by reference to the application data) whether the applicant physician is applying for the stand-alone policy or a rider (The application for a rider could be for a παer on a new malpractice insurance policy, or could be for a new rider to be added on renewal of an existing malpractice insurance policy ) If the physician has applied for a rider , then at test 22 t is determined whether or not the applicant has been approved for the underlying malpractice coverage If at test 22 the applicant has not been approved for malpractice coverage (either because of the applicant s risk rating or other factors or because no application was made for an underlying malpractice insurance policy, meaning that the request for a rider was an error) , then the process ends at 23 and no coverage is provided

If at test 22 the applicant has been approved for the underlying insurance policy, or if at test 21 the applicant is not applying for a rider but for a stand-alone policy, the process proceeds to step 24 for underwriting, where it is determined whether or not the applicant qualifies, from a risk management perspective, for the countersuit insurance Although it may be possible to provide a sufficiently complex expert system, and to gather sufficient information on the application, for the underwriting to be performed automatically (e g , by a computer) , traditionally underwriting has been done manually (e g , by actuaries) Thus at step 24 the application data would be sent to an underwriter and the process would wait for completion of the underwriting At step 25, on completion of the underwriting, the application would be returned and the underwriter s comments and conclusions would be entered into the system (or, in the case of automated underwriting , the underwriting conclusions would be generated and stored) Note that the underwriting can be carried out by the carrier s computer system or by underwriting operations remote from carrier's computer system Next , at test 26 , the process would determine , based on the underwriter s entries (or the automated underwriting) , whether or not to approve the application If not the process ends at 27 If at test 26 the application is approved, then the process proceeds to step 28 for pricing of the countersuit insurance as well as other premium computing

The underwriting step could be unnecessary for separating out a premium for this aspect of the insurance coverage , particularly where the countersuit coverage s being purchased as a rider to a malpractice policy, for reasons set forth above Specifically, it may be that every applicant is a good risk for this type of insurance as discussed When the coverage is being purchased as a stand-alone policy, some underwriting may be required However, when the coverage is being purchased as a rider, it may be possible to avoid particularized underwriting and skip directly to pricing step 28 , as indicated by dashed alternate path 29

As discussed above , insurance according to the invention could pay for itself, especially when offered as a rider to a malpractice insurance policy Therefore, particularized pricing step 28 may be unnecessary (I e apart form pricing of premium computing for the coverage as a whole) and may constitute the imposition of a "zero" premium However , it may be that carriers may charge at least a nominal administrative charge for the countersuit coverage , and moreover it may be found that the coverage does not pay for itself, depending on how the invention is implemented, so that pricing step 28 would be required

Following pricing step 28, process 10 continues with step 200 in which the premium set in step 28 is collected, and n step 201 a countersuit insurance policy or a malpractice insurance policy with a countersuit insurance rider , is issued , or an existing malpractice insurance policy is renewed with a countersuit rider (whether or not the physician has purchased the rider before) At the time that the policy is issued or as a practical matter , shortly thereafter (perhaps on a regular basis such as daily) the name of the covered physician preferably is uploaded to a publicly available database As shown FIG 2, this posting step 12 preferably involves posting the physician's name to a central database of all physicians covered by countersuit insurance issued by any insurance carrier or broker which is available on a public data network such as the World Wide Web portion of the Internet In an alternative shown FIG 2A , the posting step 12' involves the posting at step 212 of the physician's name to a publicly accessible database on an in-house computer system at the insurance carrier or broker which is then linked at step 213 to a search facility that is available on a public data network Again , this could be a search engine available on a World Wide Web site, such as those using the Common Gateway Interface search protocol Preferably, if the latter embodiment is used, all insurance carriers and brokers link their databases to the same search engine

Whatever searching mechanism is provided, preferably if a person querying any database according to the invention (whether it is one central database , one central searching site , or one of several sites to be searched) , then if a particular physician's name is entered as the search criterion, the system will return not only the name entered, but also similar names Preferably, the list of names returned will be alphabetical centered on the name entered by the searcher, with names listed before and after I f the name entered by the searcher is not found in the search then preferably the results are centered on the closest match Th s would allow the searcher to check for alternate spellings, etc , and would account for a search based on a diminutive of the physician s given name (e g , "Bob" instead of "Robert") Although in the most particularly preferred embodiment only alphabetically similar names would be returned, in alternative embodiments it is possible to provide more sophisticated searching that would check alternate spellings and similar-soundmg names that are spelled differently In any event, the searcher preferably would be advised to check other spellings etc , when the results are returned Module 11 ends at 202 following posting step 12 or 12'

FIG 3 shows claim administration module 13, as influenced by external events 14 At event 141, a patient seeks to sue a physician covered by countersuit insurance according to the present invention At event 142, the patient has contacted his or her attorney who queries the publicly accessible countersuit database or search facility (or databases or search facilities if each insurer maintains a separate database , or if different groups of insurers maintain different group databases) and finds that the physician is listed The attorney then considers at event 143 any doubts regarding the merits of plaintiff's case If the attorney has sufficient doubts, he or she may be deterred at event 144 from filing suit against the covered physician, and the patient's attempt to sue the physician ends at 145 If at 143 the attorney is not deterred, then at event 146 the attorney files suit on behalf of the patient, and at event 147, the litigation proceeds -- n one example -- to a conclusion Claims administration module 13 then begins at step 30, as the physician, on conclusion of litigation 147, makes a claim for benefits under the countersuit policy or rider At test 31, it is determined whether or not litigation 147 was settled or otherwise terminated short of final judgment If it was, then m the preferred embodiment the physician is not eligible for benefits and claim administration module 13 ends at 15 If at test 31 it is determined that litigation 147 was not settled or otherwise terminated short of final judgment, then at test 32, it is determined whether or not judgment in litigation 147 was rendered for the physician If at test 32 it is determined that judgment has been entered against the physician then n the preferred embodiment claim administration module 13 ends at 15 If at test 32 it is determined that j udgment has been entered for the physician and has been sustained on appeal or no appeal was taken within the time for doing so then in the preferred embodiment at step 33 the frivolousness of the underlying malpractice claim is analyzed Normally, this step would have to be performed based on inputs by a human being preferably one trained n legal matters such as an attorney The selection of such an attorney has been described above When the person analyzing the frivolousness of the claim has completed that analysis and entered conclusions into the system then at test 34 it is determined whether or not the claim was frivolous If at test 34 it is determined that the claim was not frivolous , then claim administration module 13 ends at 15 If at test 34 it is determined that the claim was frivolous , then at step 35 a countersuit and funding therefor are authorized and claim administration module 13 ends at 36 FIG 4 shows countersuit administration module 16, which starts at test 40 awaiting the filing of the countersuit authorized n step 35 of module 13 Once the countersuit has been filed, the module 16 awaits at test 41 the receipt of a bill (preferably by computer) from the attorney handling the countersuit on behalf of the physician The bill would typically include the attorney's fees, as well as other disbursements or expenses incurred by the attorney on behalf of the countersuit plaintiff physician Bills for such disbursements or expenses could also come directly to the insurance carrier from the provider of the product or service to the attorney, and for purposes of FIG 4 should be treated as attorney bills Once a bill is received, then at step 42 funds are disbursed (preferably by computer) to pay the bill , the expenditure having been authorized by the authorization 35 to file the countersuit Step 42 preferably includes a review of the bill to determine that it is correct and reasonable, and may involve returning the bill to the attorney or provider, and receipt of a corrected bill As soon as the bill has been paid, then at test 43 it is determined whether or not the countersuit has terminated, including termination of all appeals or the expiration of the time for filing an appeal If it has not then module 16 loops back to test 41 to await further bills

Once the countersuit has terminated , then it is determined at test 44 whether or not the physician prevailed in the countersuit If not, process 10 ends at 17 If at test 44 it is determined that the physician did prevail , then at test 45 it is determined whether or not damages were awarded If not process 10 ends at 17 If at test 45 it is determined that damages were awarded then at test 46 it is determined whether or not damages were collected If so, then at step 47, a predetermined share of the damages (e g , 30%, 40% or 50% according to the policy terms, which could specify any percentage, including 0%) is collected from the physician If at test 46 it is determined that damages that were awarded have not been collected, then at test 48 it s determined whether or not the damages are collectible (e g , the defendant might be judgment-proof) If not, process 10 ends at 17 Otherwise, process 10 loops back to test 46 to await collection of the damages

An exemplary computer hardware system 510 with which the present invention may be implemented is shown in FIGS 5-6 In FIG 5, which shows a first preferred embodiment of apparatus according to the invention , system 510 includes a computer 511 comprising a central processing unit ("CPU") 520, a working memory 522 which may be, e g , RAM (random-access memory) or "core" memory, mass storage memory 524 (such as one or more d sk drives or CD- ROM drives) , one or more cathode-ray tube ("CRT") display terminals 526 , one or more input devices such as keyboards 528, one or more input lines 530, and one or more output lines 540, all of which are interconnected by a conventional bidirectional system bus 550

Input hardware 536, coupled to computer 511 by input lines 530, may be implemented in a variety of ways Modem or modems 532 , which also may be routers , or other computer-to-computer communication devices, can be connected by a telephone line or dedicated data l ne 534 can be used to allow attorneys to dial up in an embodiment in which the carrier maintains its own database (on mass storage device 524) and allows direct dial-up access Modems/routers/etc 532 also may be used to allow access by a central Internet search engine 562 in an embodiment where each insurer maintains its own database but access is through the central search engine Alternatively or additionally, the input hardware 530 may comprise CD-ROM drives or disk drives 524 In conjunction with display terminal 526 , keyboard 528 may also be used as an input device For example, application data, underwriting data from the underwriter, or frivolousness analysis data from the attorney (see above) , may be entered through one or more keyboards 528

Output hardware 546, coupled to computer 511 by output lines 540, may similarly be implemented by conventional devices By way of example , output hardware 546 may include CRT display terminal 526 for displaying the premium to be charged or whether or not an application is approved or a counterclaim authorized Output hardware 546 might also include a printing device or printer 542, so that hard copy output may be produced, or a disk drive 524 , to store system output for later use Where the names of covered insured (e g , physicians) are to be uploaded to a central database 561 (e g , at a site 560 on the Internet) , information may be transmitted over telephone or dedicated data lines 534, possibly with the use of modem/router/etc 532

Output hardware 546 preferably also includes a payment unit 547 for disbursing funds to attorneys who are prosecuting authorized counterclaims Payment unit 547 could be a check printer if payment is made by check Alternatively, payment unit 547 could be an electronic funds transfer unit that, using modem/router/etc 532, communicates with the insurer's bank and the attorney's bank to transfer funds directly to the attorney s account

Internet site 560 preferably includes a search engine 562 for querying database 561 or where site 560 does not include database 561 search engine 562 will query the individual insurer databases via connections such as connection 563 to input data line 534 Indeed, a carrier if desired could provide access to its database both through the Internet site 560 and by a dial-up facility at input data line 534 Moreover, even if an external central database 561 is used, it need not be hosted on an Internet site but could be accessible on a dial-up basis, or it could be accessible both through the Internet or as a dial- up facility

In operation, CPU 520 coordinates the use of the various input and output devices 536 , 546 , coordinates data accesses from mass storage 524 and accesses to and from working memory 522 , and determines the sequence of data processing steps

The publication of names of those covered by counterclaim insurance allows the present invention to achieve maximum deterrence of frivolous lawsuits Normally, insurers do not publicize their policyholders' names, and many policyholders probably prefer it that way However , it would preferably be a condition of the counterclaim insurance contract that the insured allow his or her name to be publicized as a condition to receiving coverage or benefits under the counterclaim insurance Alternatively, benefits might be available to those unwilling to have their names listed but, because the deterrent effect is missing or reduced (potential plaintiffs may still be deterred somewhat by the uncertainty as to whether or not the professional is covered by the insurance , although in that case it would have to be publicized that some physicians may choose not be listed for there to be any deterrent effect at all) , they may be charged a higher premium

Turning now to FIG 6, there is a representative illustration of a System 1 for carrying out the present invention The System 1 preferably involves multiple computer systems for cooperatively carrying out the invention, each of the computer systems as illustrated in FIG 5 In FIG 6, there is at least one digital electrical computer 321 for implementing a method for determining a premium structure for insurance providing coverage including funding for a counterclaim The at least one digital electrical computer 321 can be comprised as set out in FIG 5 For example, the at least one digital electrical computer 321 can include a digital electrical computer, an input device for inputting data electrically connected to the digital electrical computer , and an output device electrically connected to the digital electrical computer, wherein the digital electrical computer is controlled by a computer program to form a programmed digital electrical computer (processor for processing input electrical signals, the input electrical signals being produced in response to information entered at the input device , the information including actuarial data and census data, at least one of sa d data including indicia of litigation frequency and cost, the data in a format specified by the computer program, the processing including modifying the input electrical signals into output electrical signals representing a projection of a premium structure , based upon the actuarial data and the census data, for insurance funding of a counterclaim (including for a professional malpractice , medical malpractice claim , and/or frivolous medical malpractice claim) , the output electrical signals being communicated to the output device which, m response to the output electrical signals, generates a depiction of the projection Preferably , however , the computing operations of the at least one digital electrical computer system 321 are distributed to remote locations , for example , to make use of specialized skills and economies of scale Accordingly, the at least one digital electrical computer 321 can be configured so that computing including receiving actuarial data and census data , at least one of said data including indicia of litigation frequency and cost, the data in a digital format predetermined according to computer programmed input requirements , calculating a premium structure , based upon the actuarial data and the census data for the insurance providing coverage including funding for counterclaim , and generating insurance documentation including premium structure need not be carried out at the same location That s , while it would not be unusual for this computing to be carried out just at one location for system 321 particularly that of Insurance Carrier Computer System 306 different computing architectures and operations can be carried out at remote locations, which is why the system 321 is illustrated in dashed lines in FIG 6

Thus, for example, FIG 6 shows the at least one digital electrical computer 321 a distributed configuration, in this case including an Intermediary Computer System 302 , for example , a computer system of an investment banking company, financial advisor, valuation firm, consulting firm, or auditor Intermediary Computer System 302 can also handle marketing , actuarial , and underwriting computing , internally , thought it is preferable to separate these activities to other computer systems for such reasons as set out above Accordingly,

FIG 6 shows an Intermediary Marketing Computer System 316 for generating marketing pieces , preferably with graphical representations as discussed subsequently herein Actuary Computer System 304 and Underwriting Computer System 310 can alternatively be internalized into Insurance Carrier Computer System 306 along with the carrier ' s internal accounting computing Similarly, FIG 6 shows a Carrier Marketing Computer System 318 for generating other marketing pieces , again preferably with graphical representations as discussed subsequently herein Also illustrated n FIG 6 is a Broker's Computer System 314 analogously showing a Broker ' s Marketing Computer System 320 in dashed lines or generating other marketing pieces , again preferably with graphical representations as discussed subsequently herein

The at least one digital electrical computer 321 is operable to communicate data w th other computer systems, including though Internet (World Wide Web or front end network gateway) Computer System 312, which has been discussed previously, along with local Terminals 322, representing the computer systems of the public that may query the Internet Computer System 312 An Insured 's Attorney's Computer System 324 and the Insured 's Computer System 326 are illustrated in FIG 6 , as being in respective communication, e g , email, as well as each or both being in communication with the at least one digital electrical computer 321 A Third Party Computer System With Database 328 represents such data sources as the Physicians Insurer's Association of America (PIAA) database

FIG 7 provides a flow chart illustrating representative computing activities preferably allocated to Intermediary Computer System 302 Logic begins with

Receive Product Model 330, which may include receiving at least one actuarial model from , say , Actuary Computer System 304 to permit analyzing the insurance product associated with the present invention The model (s) permit (s) computing underwriting and other profits, as well as calculating a premium structure , usually from conducting sensitivity analyses in adjusting the model or in handling hypothetical additional data At Receive Actuarial Data 332, System 302 receives data, including actuarial data and census data, e g , interest rates, insurance claim tail data Receive Litigation Frequency and Cost 334 data is also obtained from Actuary Computer System 304 , for example by utilizing respective computer-to-computer communication devices 354 , such as a modem

Receive/Compute Premium Structure 336 can be a completely local computing operation , but preferably this involves receiving data from the Carrier Computer System 306 , as discussed below The premium structure could be for General 336 counterclaim coverage , Professional Liability 338 coverage, such as professional malpractice, or more preferably for Medical Malpractice 342 coverage wherein for any of these coverages, the premium structure can be for countersuit , counterclaim , or other (e g , not necessarily in court, such as for bringing professional disciplinary proceedings or presenting evidence to a prosecuting attorney) Of course , the coverage of the present invention will most likely be incorporated within broader coverage , such as general medical malpractice insurance with, say, a rider for counterclaim coverage In this case , it is understood that the premium structure includes contemplation of the counterclaim coverage so as to come within the scope of the invention , though the financial particulars of the premium structure for this counterclaim coverage may be amalgamated in w th other coverage features and f ancials in an insurance policy Optionally, depending on preferences for System 1 design, an Accounting System 327 for keeping track of the insured ' s payments (e g , Quicken™ or other such accounting or checking software , or even a bank account) , can be kept at the Insured 's Computer System 326 or a computer system keeping track of the insured ' s account Similarly, Accounting System 307 can be part of the Insurance Carrier's Computer System 306 or an independent system A sample implementation of Accounting System 307 is n the accounting department of the insurance carrier Claims Handling Computer System 315 can be an independent computer system, or it can be a portion of either or both of the Insurance Carrier's Computer System 306 and the Broker s Computer System 314

Returning to FIG 7 , test 346 determines whether the analysis is being carried out based on direct, experiential data under existing policies or not If the data is experiential , Analysis to Verify Premium Structure permits an independent audit of policy performance and viability Update Premium Structure 550 tests for a need to change the premium structure based on the analysis in 348 Updating is carried out by cycling the data to Receive / Compute Premium Structure 336 for satisfactory structuring Otherwise the logic proceeds from test 550 or test 346 to Generate Documentation 352 for documenting the premium structure and corresponding data Send Data to Marketing Computer 316 354 Send Data to Actuary Computer 304 356 , Send Data to Carrier Computer 306 358 perform data communications of the premium structure and corresponding data, as discussed further herein Thereafter , the logic reaches a Return

Turning now to FIG 8 there is an illustration of computing operations preferably carried out at Carrier Computer System 306 The logic commences from a Begin to Receive Payment Data 360 , which may involve receipt of Premium Data 364 from a remote computer such as Broker

Computer System 314 Likewise, Receive Claim Data 362 can be carried out locally or preferably remotely with Claim Data From Remote Computer, e g , 314, 366 In either case, the logic branches at a New Policy⁷ 368 test, such that if the computing is for a new policy, the analysis involves Extrapolate 369 that approximates the payment and claim data from as reasonable experiential data as is available In any case, in Compute (Update) Premium Structure 370 determines a premium structure from either the extrapolated data or directly from the Payment Data 360 and Claim

Data 362 Thereafter, various data processing steps are carried out, including Post Names on Network, e g , Web Page, 372, Generate Documentation 374 of the premium structure and of the names of the insured posted on the web page There follows Send Data to Marketing Computer System 318 376, Send Data to Actuary Computer System 304 378 , Send Data to Underwriting Computer System 310 380, Send Data to Brokers Computer System 314 382, and a Return

FIG 9 is an illustration of an Actuary Computer System 304 The logic proceeds from a Begin point to Receive Third Party Data From Computer System 389 390 , then to Receive Data From Carrier Computer System 306 390,

Receive Data From Intermediary Computer System 302 392 , and Receive Data From Underwriting Computer System 310 394 From the received data, the Actuary Computer System generates data at Compute Actuarial And Census Data 396 corresponding to any or all of the following (by counterclaim, countersuit or other) litigation frequency and cost, suits eliminated, cost reduced, defense cost, claims frequency and cost, indemnity savings, insurance (malpractice) cost/cost reduction, as well as by administrative complaint against an expert (medical , legal gun , etc ) and/or attorney for improper conduct in litigation giving rise to the counterclaim The some or all of 396 Data is printed at Generate Documentation 398 , and there follows Send Data to Underwriting Computer System 310 400, Send Data to Intermediary Computer System 302 402 , and Send Data to Carrier Computer System 306 404 , and a Return Consider particularly several features of the administrative complaint aspects of block 396 First consider a benefit for a remedy against false/fraudulent expert witness testimony The benefit can include reasonable fees and costs for review and analysis as to whether a medical or other expert witness committed perjury, delivered false testimony, and/or engaged n fraud or deception during testimony The insurance can provide for an independent attorney who will

Consult with named insured Obtain and review necessary and relevant documentation Consult with medical expert (s) as necessary

Prepare an analysis

If the analysis supports further action against medical expert witness the insurance carrier will appoint an independent attorney to

Research procedures regarding range of further action (s)

Prepare Complaints can be filed with further action can be requested from and penalties can be recommended to

(1) District Attorney or Prosecuting Attorney

(2) All applicable State Medical Licensing Board (s) and/or any state agency responsible for physician disciplinary actions (3) All applicable County State and/or National Medical Association (s)

(4) All applicable State and/or National Medical Specialty Organizations

(5) American Board of Medical Specialties It is important to note that the present discussion of Medical Licensing Boards Medical Associations and Medical Specialty Associations etc are representative of such equivalent institutions for other professionals Other health professionals will have their own organizations For example osteopathic physicians will answer to Osteopathic Licensing Boards Osteopathic Associations and Osteopathic Specialty Associations The concept also applies to non-health professionals

Now consider a benefit for a remedy against plaintiff s counsel for a violation of the code of professional responsibility The benefit includes reasonable fees and costs for review and analysis as to whether plaintiff s attorney e g in medical malpractice case engaged in unethical and/or unprofessional conduct The insurance will provide an independent attorney who will

Consult with named insured

Obtain and review necessary and relevant documentation Consult with medical or legal expert (s) as necessary Prepare an analysis

If the analysis supports further action against plaintiff's attorney the Company will appoint an independent attorney to

Research procedures regarding range of further action (s)

Prepare documents describing the underlying complaint Prepare documents supporting the basis for executing further action (s)

Prepare documents recommending or supporting appropriate penalties

Complaints can be filed with further action can be requested from and penalties can be recommended to

All applicable State Licensing Authorities and/or any state agency responsible for addressing attorney disciplinary matters

FIG 10 illustrates operations of Broker Computer System 314 From a Begin point, there is Input/Receive Payment Data 410 which leads to Input/Receive Claim Data 410 From this received data Broker Computer System 314 Calculates Changed Premium Structure 414 if such a change appears warranted from the received data and such a change may involve a reduction n premium cost to increase sales , etc , or it may perhaps reflect other local data factors Next, Generate Documentation 416 prints some or all of what has been calculated n Changed Premium Structure 414, or the data handled therein, leading to Send Data to Carrier Computer System 306 418 Broker Marketing Computer System 320 420, and a Return

Turning now to FIG 11 , there is an illustration of a Respective Marketing Computer System 316 318, & 320, that is representative of all said marketing computer systems From a Begin point the logic proceeds to Receive Data (respectively from 302, 306, & 314) from which Generate Marketing Data 422 develops data representing marketing materials , preferably including Generate Graphics Pay-out Pattern, Reduced Cost, etc 424 See FIG 12 as an example Generate Documentation 426 prints the marketing materials and graphics and Send Data 428 (respectively to 316, 318, & 320) conveys any portion of the marketing materials and graphics to the respective computers

FIGS 12-39 are data processing maps They are not so much a logic flow as the data processing can utilize the same data in numerous operations , even at different computers, sequentially or simultaneously There are many design options to carry out the gist of the invention The following s a table of the data processing mapped m said figures

INPUT AND OUTPUT TABLES Table 1 Intermediary Computer System 302 (See FIG. 12)

Table 2 Actuary Computer System 304 (See FIGS. 13-18)

Table 3 Carrier Computer System 306 (See FIGS. 19-25)

Table 4 Underwriter Computer System 310 (FIGS. 26-27)

Table 5 Claims Handling Computer System 315 (FIG. 28)

Table 6 Front End Network Gateway Computer System 312 (FIG. 29)

Table 7 Broker's Computer System 314 (FIG. 30)

Table 8 Intermediary's Marketing Computer System 316 (FIG. 31)

Table 9 Carrier's Marketing Computer System 318 (FIG. 32)

Table 10 Broker's Marketing Computer System 320 (FIG. 33)

Table 11 Terminals 322 (FIG. 34)

Table 12 Insured 's Attorney's Computer System 324 (FIG. 35)

Table 13 Insured 's Computer System 326 (FIG. 36)

Table 14 Accounting Computer System 327 (FIG. 37)

Table 15 Third Party Database Computer System 328 (FIGS. 38-39)

Turning now to FIGS 40-42, which collectively illustrate representative web page presentations produced at Front End Network Gateway 312 FIG 40 provides home page with options selectable by at least one of Computer Terminals 322 FIG 41 is another user interface including a search engine Optionally, the search engine can search its own database, where all carriers load data, or the search engine can search remote databases for the carriers , for example, over the Internet, as illustrated in FIGS 43- 44 FIG 42 and FIG 44 show results of a search

FIG 45 is a first specimen of representative output generated m connection with determining a premium structure for the present invention FIG 43 shows an estimate of potential defense costs and indemnity savings due to the insurance

FIG 46 is a second specimen of representative output generated in connection with determining a pr emium structure for the present invention FIG 44 shows another estimate of potential defense costs and indemnity savings due to the insurance

FIG 47 is a third specimen of representative output generated m connection with determining a premium structure for the present invention FIG 45 shows still another estimate of indemnity savings due to the insurance FIG 48 is a forth specimen of representative output generated n connection with determining a premium structure for the present invention FIG 45 shows an estimate of profit due to the insurance FIG 49 is a fifth specimen of representative output generated in connection with determining a premium structure for the present invention FIG 47 shows an estimate of a range of expected return due to the insurance

FIG 48 is a sixth specimen of representative output generated in connection with determining a premium structure for the present invention FIG 48 shows more of the estimate of a range of expected return due to the insurance

FIG 49 is a seventh specimen of representative output generated in connection with determining a premium structure for the present invention FIG 49 shows cash flow for a policy corresponding to the insurance FIG 50 is a eighth specimen of representative output generated in connection with determining a premium structure for the present invention FIG 50 shows cash flow and income due to the insurance

FIG 51 is a ninth specimen of representative data useful in connection with determining a premium structure for the present invention FIG 51 shows illustrative medical malpractice statistics from PIAA claim trend analysis

FIG 52 is a tenth specimen of representative data useful in connection with determining a premium structure for the present invention FIG 52 shows further illustrative medical malpractice statistics from PIAA claim trend analysis

FIG 53 is an eleventh specimen of representative data useful in connection with determining a premium structure for the present invention FIG 53 shows still further illustrative medical malpractice statistics from PIAA claim trend analysis

FIG 54 is a twelfth specimen of representative data useful m connection with determining a premium structure for the present invention FIG 54 shows yet further illustrative medical malpractice statistics from PIAA claim trend analysis FIG 55 s a thirteenth specimen of representative data useful n connection with determining a premium structure for the present invention FIG 55 shows illustrative medical malpractice statistics from Bests FIG 56 is a fourteenth specimen of representative output generated in connection with determining a premium structure for the present invention FIG 56 shows illustrative medical malpractice statistics from Bests FIG 57 is a specimen of representative marketing documentation including a graphical representation of a pay out pattern for the present invention More particularly , FIG 57 is an illustration of graphics that can be produced by Generate Graphics Pay-out Patterns 424 FIG 57 is a graphic representation of medical malpractice pay-out patterns with percent paid graphed against age of occurrence Occurrence , claims made , and counterclaim are also shown

FIG 58 is a fifteenth specimen of representative data useful in connection w th determining a premium structure for the present invention FIG 56 shows illustrative medical malpractice pay out statistics from Bests

In using the present invention, consider the following hypothetical analysis of the counterclaim insurance program

1. Estimation of potential defense cost and indemnity savings to an insurer :

A significant benefit of the counterclaim insurance is an anticipated reduction in loss costs and allocated loss adjustment expenses (ALAE) due to the elimination of frivolous claims A reduction in costs can be estimated as a percentage of medical malpractice premium The reduced costs are derived from two sources- The reduced number of claims that have no indemnity payment , and

The reduced number of claims that have plaintiff settlements less than $30,000 Consider the estimated range of potential impacts is as follows

No indemnity claims 0 9%-8 3% of medical malpractice premium - Plaintiff settlements <$30,000 0 1% 0 7% of medical malpractice premium

The range is based on varying the assumed percentage of claims that are closed without an indemnity payment which are frivolous from 25% to 75%, and the assumed percentage of these frivolous claims that will be eliminated ranges from 25% to 75% The midpoint estimate assuming 50% of zero indemnity claims are frivolous and 50% of those will be eliminated produces a total reduction m medical malpractice costs of 4 0% of premium on an annual basis A complete table of values is shown in FIG s 43 and 44

2. The estimated value of the policy/program An estimate of the potential value of the counterclaim insurance itself can be made m terms of the expected total return as a percent of premium Total return includes underwriting profit and investment income after federal income tax The range of estimates is based on varying the assumed percentage of doctors sued and the assumed cost of counterclaim A specimen table of values is shown n FIG 46

3. DISCUSSION OF ASSUMPTIONS REDUCED MEDICAL MALPRACTICE COSTS

The existence of the counterclaim insurance and the associated web site is expected to eliminate some portion of medical malpractice claims that have no indemnity as well as some portion of claims with plaintiff settlements less than $30,000 An estimate the reduction in claims as a percentage of medical malpractice premiums is as follows For the claims with no indemnity, the reduction m medical malpractice costs is based on the following four factors

1 The ratio of allocated loss expense to premium for medical malpractice This ratio is based on the insurance industry ' s ratio of estimated ultimate ALAE costs to premium as shown in Schedule P of the Annual Statement This ratio is 28%

2 The ratio of expense for claims with no indemnity payment to the expense for all claims This is based on the closed claim data m the PIAA Claim Trend Analysis This ratio is 53%

3 An estimate of the percentage of claims with no indemnity that could be considered frivolous This is based on judgment, but can be supported based on examination of the closed claim data 68% of all claims are closed with no indemnity payment, and 92% of those claims are dropped withdrawn or dismissed It is believed that some portion of claims that are dropped withdrawn or dismissed are potentially frivolous An estimate of the impact can be made using an assumption that 10% to 50% of the dropped withdrawn or dismissed claims are frivolous

4 An estimate of the percentage of frivolous claims that could potentially be eliminated by the existence of counterclaim coverage It is believed that the existence of the counterclaim insurance and the associated web site will eliminate the filing of many of the claims that have been dropped , withdrawn or dismissed and are frivolous An estimate of the impact can be made using an assumption that 10% to 50% of frivolous claims will be eliminated

The reduction m medical malpractice insurance costs for claims with no indemnity due to the existence of counterclaim coverage and the associated web s te is calculated as the product of the above four factors Because the third and fourth factors are subj ect to judgment, consider a table of estimated reductions in premium varying these two factors on FIGS 43 and 44

For the claims with plaintiff settlements less than $30,000, there is an expected reduction of expense as well as indemnity The reduction in medical malpractice costs is based on the following factors

1 The ratio of allocated loss expense to premium for medical malpractice This ratio is based on the insurance industry ' s ratio of estimated ultimate ALAE costs to premium as shown in Schedule P of the Annual Statement This ration is 28%

2 The ratio of expense for claims with plaintiff settlements to the expense for all claims This is based on the closed claim data in the PIAA Claim Trend Analysis This ration is 42 5%

3 The ratio of indemnity losses to premium for medical malpractice This ratio is based on the insurance industry s ratio of estimated ultimate loss to premium as shown m Schedule P of the Annual Statement This ratio is 35%

4 The ratio of indemnity for plaintiff settlements to indemnity for all claims This is based on the closed claim data in the PIAA Claim Trend Analysis This ratio is 93%

5 The ratio of indemnity and expense for claims less than $30,000 to indemnity and expense for all claims This is based on the closed claim data m the PIAA Claim Trend Analysis by ^"type of injury No expense data by type of in_jury was available Therefore we have assumed that the distribution of expense by type of injury and average amount is similar to the distribution of indemnity amounts This assumption appears reasonable based on a review of the relationship of indemnity to expense for other closed claim statistics The ratio is 2 6%

6 An estimate of the percentage of plaintiff settlement claims that could be considered frivolous This is based on _judgment It is believed that some portion of plaintiff settlement claim are frivolous , but are settled less than $30,000 to avoid being reported to the National Practitioners Data Bank An estimated of the impact can be made using an assumption that 10% to 50% of the plaintiff settlement claims less than $30 , 000 is frivolous 7 An estimate of the percentage of frivolous claims that could potentially be eliminated by the existence of counterclaim coverage This is also based on judgment It is believed that the existence of the counterclaim insurance and the associated web site will eliminate the filing of many of the claims that are settled for the plaintiff for less than S30.000 and are frivolous An estimate of the impact can be made using an assumption that 10% to 50% of these frivolous claims will be eliminated

The reduction in medical malpractice insurance costs for plaintiff settlement claims less than $30,000 due to the existence of counterclaim coverage and the associated web site s calculated as { [ 1 x 2] + [3 x 4] } x 5 x 6 x 7

Because the sixth and seventh factors are subject to judgment, we have provided a table of estimated reductions in premium varying these two factors on FIG s 43 and 44

4. VALUE OF THE POLICY/PROGRAM

Estimates of the value of the counterclaim insurance policy itself can be made based on the following The price of the insurance - SI 000 - The commission , marketing and premium tax costs assumed - 26% of premium ,

An estimate of the frequency of claims An estimate of the severity (average cost) of claims The underwriting profit is calculated as Premium - Expenses - Claim Costs

In addition, an estimate can be made of the potential investment income and the federal income tax The total return is calculated as

(Underwriting profit + Investment Income - Federal Income Tax )

The calculations of total return are shown in FIGS 46-48

Assumed an initial market share of 10% However, this estimate of value is expressed as a percent of premium , and therefore , is not a fected by the market share A greater market share will increase the dollars of value , but not the percentages The assumed average premium of $1,000, however, does affect the estimate of value Should the average premium differ from that estimated above , then the estimate of value also would change

Frequency

Our estimate of frequency, or number of claims, is based on several factors

The percentage of doctors that are sued- -estimate 6-10% The percentage of suits that go to trial - estimate 10% The percentage of trials where a physician wins - estimate 80% (that is 8% (80% x 10%) of all claims end in a trial and are won by the physician)

It is assumed that the purchase of counterclaim insurance 100% of suits that go to trial and the physician wins w ll be reviewed for potential counterclaim - The percent of suits won by the physician that are reviewed and deemed suitable for counterclaim An initial estimate is 50% The value of the counterclaim insurance policy is significantly affected by, the frequency of claims Therefore, consider the specimen with the table of values varying the assumed percentage of doctors that are sued from 6% to 16% This will reflect the quality of the book of business insured for counterclaim insurance Severity (Average Claim Value) An estimate of the severity of claims is based on an assumption that the cost of reviewing claims for potential counterclaim is $12,500, and the cost of the actual counterclaim is $20,000 Because the average cost of counterclaim can vary with the complexity of the case , we have also provided a table of values varying the assumed cost of counterclaim from $20,000 to $45,000 The impact on the value of the policy from varying the severity is less significantly than the impact of varying the frequency Preliminary estimates do not reflect the potential for recovery of claim costs m the event of winning an award through counterclaim Any recoveries will only increase the value of the policy Investment Income

The effect of timing between when the premium is collected and the counterclaim benefits are paid w ll generate investment income , which contributes to the value of the counterclaim policy The following factors are used to derive our estimate of investment income

An assumed payment pattern was derived based on the industry payment pattern for medical malpractice claims- made insurance An adjustment was made to eliminate payments after 7 years, assuming that the likelihood of frivolous claims beyond 7 years is negligible, and lagging the pattern 2 years to reflect the fact that the counterclaim must follow the original malpractice suit which takes 2 years on average - An investment return of 5%

Invested assets equal to loss reserves generated by the counterclaim insurance A discount rate of 5%

Federal Income Tax United States federal income tax on underwriting profit and investment income s based on an assumed tax rate of 30%

5. DATA

The following sources of data are used for this analysis - Insurance industry medical malpractice occurrence and claims-made experience from A M Best s Aggregates and Averages

Closed claim statistics from "PIAA Claim Trend Analysis" published by the Physician Insurers Association of America

Consider representative output of the present invention , particularly an endorsement

ENDORSEMENT Medical Justice Benefit Package WHAT IS COVERED BY THIS BENEFIT

All benefits are provided only to named insured (s) who have been named as a defendant m an action against the insured (s) m a court of law for, whole or n part, medical malpractice

BENEFIT FOR COUNTERCLAIM PROSECUTION AGAINST NON- MERITORIOUS/FRIVOLOUS MEDICAL MALPRACTICE CLAIMS Benefits are those that include reasonable fees and costs for the analysis and prosecution of an action against those persons (such persons may include plaintiff's counsel, plaintiff, and/or expert witness) responsible for bringing and/or advocating a non-meritorious medical malpractice action against the insured as specifically described below

The Company w ll provide an independent attorney who will

Consult with the named insured , - Obtain and review necessary and relevant documentation ,

Consult with medical expert (s) as necessary.

Prepare an analysis If the analysis supports the bringing of a counterclaim action, the Company will appoint an independent attorney to

Prepare complaint (lawsuit) ,

Prepare discovery plan ,

Prepare and conduct discovery - Conduct depositions ,

Defend motions to dismiss ,

Prepare and/or defend motion for summary j udgmen ,

Perform miscellaneous negotiations/commumcations/research , - Prepare for trial ,

Litigate The Company will also pay the

Fees for medical expert to review file , consult with attorney , render option , testify at deposition and trial , - Costs including filing fees and depositions,

Defense of a successful j udgment if appeal is taken The determination of whether there is a basis for the pursuit of a counterclaim action will be made in the sole discretion of the attorney who undertakes the analysis

NOT ALL CASES ANALYZED WILL SUPPORT PURSUIT OF FURTHER ACTION

REIMBURSEMENT PROVISION In the event of a recovery under this benefit, the named insured agrees to reimburse to the Company the costs and fees incurred out of any recovery, but only up to one-half (1/2) of the amounts recovered from the parties who brought the medical malpractice action If there is no recovery, the insured is not required to reimburse the Company for any expenses associated with providing benefits under this policy Reimbursement will not exceed the Company s actual costs and fees spent in providing the benefits under the policy

BENEFIT FOR REMEDY AGAINST FALSE/FRAUDULENT MEDICAL EXPERT

WITNESS TESTIMONY Benefits include reasonable fees and costs for review and analysis as to whether a medical expert witness committed perjury, delivered false testimony, and/or engaged in fraud or deception during the giving of testimony

The Company will provide an independent attorney who

Consult with named insured , Obtain and review necessary and relevant documentation ,

Consult with medical expert (s) as necessary, - Prepare an analysis

If the analysis supports further action against medical expert witness, the Company w ll appoint an independent attorney to

Research procedures regarding range of further action (s) ,

Prepare documents describing the underlying complaint, Prepare documents supporting the basis for executing further action (s) , Prepare documents recommending or supporting appropriate penalties

Where applicable, complaints will be filed with, further action requested from , and penalties recommended to - All applicable state medical licensing boards and/or state agencies responsible for physician disciplinary actions

All applicable county, state, and/or national medical associations , - All applicable state and/or national medical specialty organizations ,

American Board of Medical Specialties District Attorney or Prosecuting Attorney NOT ALL CASES ANALYZED WILL SUPPORT PURSUIT OF FURTHER ACTION

BENEFIT FOR REMEDY AGAINST UNETHICAL MEDICAL MALPRACTICE PLAINTIFF'S ATTORNEY BEHAVIOR Benefits include reasonable fees and costs for review and analysis as to whether plaintiff's attorney in a medical malpractice case engaged m unethical and unprofessional conduct

The Company will provide an independent attorney who will

Consult with medical expert (s) as necessary. Prepare an analysis If the analysis supports further action against plaintiff's attorney, the Company will appoint an independent attorney to

Research procedures regarding range of further action (s) ,

Prepare documents describing the underlying complaint , - Prepare documents supporting the basis for executing further action (s) ,

Prepare documents recommending or supporting appropriate penalties Where applicable, complaints will be filed with, further action requested from , and penalties recommended to

All applicable state and federal licensing boards and/or agencies responsible for attorney disciplinary actions

NOT ALL CASES ANALYZED WILL SUPPORT PURSUIT OF FURTHER

ACTION OBLIGATION OF THE INSURED The insured shall notify the insurer, in writing, within one hundred twenty (120) days of the "termination m favor of the insured," that the insured wishes to exercise rights contained in this Endorsement

ADDITIONAL EXCLUSIONS AND LIMITATIONS APPLICABLE TO THIS

BENEFIT These exclusions are n addition to the exclusions listed in the General Exclusions section of the policy

There are no benefits unless the underlying medical malpractice action has been terminated n favor of the insured "Termination m favor of the insured" is a judgment for the defendant by either a judge or jury, which has become final and has aged past the point of appeal A dismissal for failure to state a claim or dismissal for summary judgment is considered a termination in favor of the insured A settlement is not a termination favor of the insured, and a voluntary dismissal of an action by plaintiff is not a termination n favor of the insured

Pre-existing matters are not covered No benefits will be paid for any event that medical malpractice settlements or medical malpractice actions where the act of malpractice is alleged to have occurred before the effective date of the policy

In order for any benefits to be provided, the following conditions must be met

The alleged act of malpractice complained of by the plaintiff in the medical malpractice suit must have occurred while coverage for the insured was in effect under this policy. For an action to be brought against persons alleging medical malpractice, the underlying medical malpractice action must have been terminated in favor of the insured as defined above , - For benefits to be available for a particular act, coverage under this policy must have been in force continuously , without lapse or termination , from and including the time of the alleged act to and including the filing of the counterclaim This may not all occur while the policy is in force The insured has the right to purchase coverage that will extend benefits for an act of alleged malpractice occurring while the policy is in force, but the outcome does not occur while the policy is in force, but the outcome does not occur while the policy is in force This policy specifically excludes

Any lawsuit filed without notice to the Company by the insured against the persons who alleged medical malpractice against the insured , - Any lawsuits filed against the insured that would not be considered medical malpractice , I e actions that are related to the business side of the medical malpractice,

Any action filed relating to abuse of prescription or controlled substances or substances requiring a DEA number, - Any penalties or judgments against any insured awarded or ordered by any court ,

Any matter that is not specifically listed in this policy as a benefit under the policy,

Out-of-pocket, travel, or time away from practice expenses of the insured except as defined in general policy ,

General prepaid legal insurance relating to matters not specifically enumerated, for example and not by way of limitation, employment matters, managed care contract matters, real estate matters, tax matters, and sexual harassment matters , Any action arising out of or related to use or abuse of any illegal substance intoxicants , or similar substances ,

Any action arising out of or related to any fraudulent or dishonest acts, malicious acts or omissions, or any acts of moral turpitude ,

Appeal, if insured loses counterclaim, shall be at the sole discretion of the insurer

MAXIMUM AMOUNT PAYABLE UNDER THIS BENEFIT This policy will pay the maximum amount of One Hundred

Thousand Dollars ($100,000 00) for this benefit per event of "termination in favor of insured," with an annual aggregate of Three Hundred Thousand Dollars ($300 000 00) for all of said events

Thus it is seen that insurance is offered as an effective deterrent to the filing and prosecution of meπtless or frivolous claims One skilled in the art will appreciate that the present invention can be practiced by other than the described embodiments , which are presented for purposes of illustration and not of limitation, and the present invention is limited only by the claims which follow

Claims

WHAT IS CLAIMED IS

1 A computer- implemented method for determining a premium structure for insurance providing coverage including counterclaim coverage , the method comprising the steps of receiving actuarial data and census data, at least one of said data including indicia of litigation frequency and cos , computing a premium structure , based upon the actuarial data and the census data, for the insurance providing coverage including counterclaim coverage and generating insurance documentation including premium structure

2 The method of claim 1 , wherein the step of receiving the actuarial data and census data is carried out with data received from an actuarial computer system , the step of computing a premium structure is carried out by means of a carrier computer system located remotely rom the actuarial computer system , and further including the step of communicating the actuarial data and census data from the actuarial computer system to the carrier computer system

3 The method of claim 1 further including the step of administrating the insurance policy by sub- steps including receiving premium payment data for the insurance , and receiving claim data for the insurance , generating second documentation including at least one of the payment data for the insurance , and receiving claim data for the insurance

4 The method of claim 3 , wherein the step of generating second documentation is carried out by means of a carrier computer system, and the step of receiving the premium payment data is carried out by inputting information at a computer system remote from the carrier computer system and further including the step of communicating the information from the remote computer system for the generating second documentation

5 The method of claim 3 , further including the steps of inputting broker information at a remote computer system , and communicating the information to the carrier computer system , and calculating an updated premium structure based upon the claim data n the broker information

6 The method of claim 3 , wherein the step of generating second documentation is carried out by a carrier computer system and the step of receiving the claim data is carried out by inputting information at a computer system remote from the carrier computer system and further including the step of communicating the information to the carrier computer system

7 The method of claim 6 , further including the steps of inputting the claim data in the information at the computer system remote from the carrier computer system , and communicating the claim data to the carrier computer system , and calculating an updated premium structure based upon the claim data

8 The method of claim 1 , further including the step of inputting payment data at an insured ' s accounting system for remote monitoring of payment data

9 The method of claim 1 further including the steps of receiving premium payment data for the insurance, the payment data including respective names corresponding to coverage by the insurance , posting the names and indicia of the coverage by the insurance on a front end network gateway to provide a warning at remote terminals

10 The method of claim 9 wherein the step of posting is carried out using the Internet as the front end network gateway

11 The method of claim 9 , wherein the step of posting is carried out using the world wide web as the front end network gateway

12 The method of claim 1 further including the steps of receiving, at an intermediary computer, the actuarial data and census data including for the insurance , at least one of said data including indicia of litigation frequency and cost , and performing an independent verification of the premium structure

13 The method of claim 1 wherein the step of receiving the actuarial data is carried out with actuarial data including indicia of suits eliminated

14 The method of claim 1 wherein the step of receiving the actuarial data is carried out with actuarial data including indicia of reduced settlement cost for suits 15 The method of claim 1 wherein the step of receiving the actuarial data is carried out with actuarial data including an indicia of defense cost

16 The method of claim 1 wherein the step of receiving the actuarial data is carried out with actuarial data including an indicia of frequency of claims

17 The method of claim 1 wherein the step of receiving the actuarial data is carried out with actuarial data including an indicia of the cost of the claims

18 The method of claim 1 wherein the step of receiving the actuarial data is carried out with actuarial data including an indicia of indemnity savings

19 The method of any one of claims 1-18, wherein the step of calculating the premium structure includes calculating a premium cost for the counterclaim brought as a countersuit

20 The method of claim 19 wherein the step of receiving the actuarial data is carried out with actuarial data including an indicia of a reduction medical malpractice cost

21 The method of any one of claims 1-18 wherein the step of calculating the premium structure includes calculating a premium cost for the counterclaim as including a counterclaim for frivolous suit

22 The method of any one of claims 1-18 further including the steps of generating marketing documentation including a graphical representation of a pay out pattern corresponding to the insurance coverage 23 The method of claim 22 wherein step of receiving the actuarial data is carried out with actuarial data including indicia of a reduction in medical malpractice cost

24 The method of any one of claims 1-18 wherein the step of calculating the premium structure includes calculating a premium cost for the counterclaim brought as a countersuit to a professional malpractice cause of action

25 The method of claim 24 wherein the step of receiving the actuarial data is carried out with actuarial data including an indicia of counterclaim litigation cost for frivolous litigation, sa d counterclaim litigation cost not including countersuit cost

26 The method of any one of claims 1-18 wherein the step of calculating the premium structure includes calculating a premium cost for the counterclaim brought as a medical malpractice cause of action

27 The method of claim 26 wherein the step of calculating the premium structure includes calculating a premium cost for the counterclaim as counterclaim litigation only for frivolous suit

28 The method of claim 1 , wherein the step of calculating the premium structure includes calculating a cost for filing an administrative complaint against an expert for improper conduct m litigation giving rise to the counterclaim

29 The method of claim 1 , wherein the step of calculating the premium structure includes calculating a cost for filing an administrative complaint against an attorney for improper conduct n litigation giving rise to the counterclaim 30 A digital electrical computer and data processing system comprising a digital electrical computer , an input device for inputting data electrically connected to the digital electrical computer , and an output device electrically connected to the digital electrical computer , wherein the digital electrical computer is controlled by a computer program to form a programmed digital electrical computer for processing input electrical signals , the input electrical signals being produced m response to information entered at the input device , the information including actuarial data and census data, at least one of sa d data including indicia of litigation frequency and cost, the processing including modifying the input electrical signals into output electrical signals representing a premium structure , based upon the actuarial data and the census data, for insurance funding of countersuit litigation for a frivolous medical malpractice claim , the output electrical signals being communicated to the output device which , m response to the output electrical signals , generates a depiction of the premium structure

31 A method for making a programmed digital electrical computer and data processing system, the method including the steps of providing a digital electrical computer having a programmable processor , an input device for inputting data electrically connected to the digital electrical computer, an output device electrically connected to the digital electrical computer , programming the processor to control the digital electrical computer for processing input electrical signals , the input electrical signals being produced m response to information entered at the input device , the information including actuarial data and census data , at least one of said data including indicia of litigation frequency and cost, the data m a format specified by the computer program, the processing including modifying the input electrical signals into output electrical signals representing a premium structure , based upon the actuarial data and the census data, for insurance funding of countersuit litigation for a frivolous medical malpractice claim, the output electrical signals being communicated to the output device which, in response to the output electrical signals, generates a depiction of the premium structure

32 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 by any member of the public, and publicizing existence of said database

33 The method of claim 32 wherein said linking comprises linking said database to a public data network

34 The method of claim 32 further comprising, for each professional accepted for coverage under said plan of insurance, printing a certificate evidencing said coverage

35 The method of claim 32 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

36 The method of claim 35 further comprising disbursing funds to pay costs of said lawsuit

37 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 by any member of the public, existence of said database being publicized

38 The apparatus of claim 37 wherein said communications unit links said database to a public data network

39 The apparatus of claim 37 further comprising a printer for printing a certificate evidencing said coverage for each professional accepted for coverage under said plan of insurance

40 The apparatus of claim 37 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 sa d 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 rivolous, 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 41 The apparatus of claim 40 further comprising a disbursement unit for disbursing funds to pay costs of said lawsuit

42 The apparatus of claim 41 wherein said disbursement unit comprises an electronic funds transfer unit

43 The apparatus of claim 41 wherein said disbursement unit comprises a check printer

44 The apparatus of claim 40 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 sa d determination , and transmitting said determination to said input device

45 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 sa d 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 sa d plan of insurance and means for linking said database to a publicly-accessible data communications interface for viewing by any member of the public, existence of said database being publicized

46 The system of claim 45 wherein said linking means links said database to a public data network

47 The system of claim 45 further comprising means for printing a certificate evidencing said coverage for each professional accepted for coverage under said plan of insurance

48 The system of claim 45 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 s frivolous , and on completion of said review, sa d 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

49 The system of claim 48 further comprising means for disbursing funds to pay costs of said lawsuit 50 The system of claim 49 wherein said means for disbursing comprises electronic funds transfer means

51 The system of claim 49 wherein said means for disbursing comprises a check printer

52 The system of claim 48 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 sa d data to make said determination , and transmitting said determination to said input means