with losses of other states where NCRIC also does business, certain data pertaining to the District of Columbia are not found in this statement.
show that, in 2001, NCRIC tried 20 cases and settled two others out of court.
From these sources, it is estimated that the total cost of claims for NCRIC to defend and indemnify physicians in the District of Columbia in 2001 was $6,238,311 of which $756,568 were non-economic damages (Table 1).
NCRIC's financial report also indicates that only one of the five plaintiff verdicts in 2001 exceeded its reinsurance threshold of $500,000.
Although Brennan et al, showed a disproportionately high percentage of potential non-meritorious cases among all cases filed, let's assume that 90 percent of the opinions behind the NCRIC experience were justifiable and, if tested by the above methodology, were not distorted by extremes.
Exposing the two error-prone opinions of plaintiff experts could have saved NCRIC $1 million in potential verdicts (assuming that the single $1.15 million verdict was a meritorious case) and $148,000 in defense costs (Table 2).
This saves money for NCRIC. Part of this saving would be offset by defense legal costs.
The purpose for calculating the cost driver is to determine a performance measure, not to prove that these savings are the actual savings to NCRIC. In effect, the cost driver is the opportunity cost to NCRIC for not reconciling error-prone opinions.