Company Structure & Capitalization

Novus is a stock insurance company owned exclusively by its insureds. As stockholders, the physician-owners have the potential to profit from dividends and have the right to elect their Board of Directors. In this way, Bariatric and General Surgeons, for the first time, have an opportunity to benefit financially from their efforts at quality insurance and loss control.

The company requires the investment of capital, which is in addition to the annual premiums it receives. Because Novus is a totally physician-owned company, the capital comes from its physician-members. Each participating insured purchases shares of common stock.. The amounts received from the sale of the shares provide the company’s capitalization.

The amount of the participants’ capital investments is determined as part of the company’s financial feasibility process. The amount of contributed capital is established with the intent of providing adequate capital to support the ongoing operations of the company. The capital investment is expressed as a percentage of each participant’s mature claims-made premium rate. This is a one-time payment, and is required to be paid at the time of joining the program. It can be paid over time however.
 
As a stock corporation, the shareholders elect the company’s Board of Directors. The Board of Directors of Novus is composed mostly of physician leaders. Please see their biographies as posted to our site. The Board meets frequently and sets the overall policies of the company. One of the Board’s principal responsibilities is to provide oversight of the Loss Control Program.
 
Novus’ stockholders are protected against personal liability for the debts or liabilities of the corporation just like stockholders in any other corporation.
 
Novus qualifies as a risk retention group under federal law, allowing it to write liability insurance nationwide with a minimum of regulation by each individual state in which it conducts business.
 
Novus provides its members who retire the opportunity to redeem their stock at its net book value, creating the potential to realize an appreciation in value on their investment in Novus.

Company Operations

The Company’s physician Board of Directors sets policy and monitors the overall operations and financial condition of the Company. The day-to-day operations and management of the company are provided by third party professionals under contract with Novus.
 
Management Advisory Services, including strategic advice, is provided by Stevens & Lee under an agreement with Novus.
 
Marketing and policyholder interface (including processing of applications and issuance of policies) is provided by Willis under an agreement with Novus.
 
Loss Control, Event Management and Claims services are provided by Stevens & Lee’s risk management department, which has both risk management professionals on staff & non-lawyer risk management professionals on staff, who work in a collaborative manner with Gateway Risk Services to manage claims.