CMIC's Loyalty Rewards Program FAQ

As of January 1, 2015 all eligible CMIC members will be automatically enrolled in our new Loyalty Rewards Program. The program works by allocating a percentage of a member’s net premium on an annual basis, to be held by CMIC in an individual member’s Loyalty Rewards Account. The account is distributed to the member upon retirement or when other eligibility requirements for distribution are met.

Our commitment to maintaining a financially sound company and a strategy of prudent growth is reflected in our A.M. Best rating of A- (Excellent), a rating that has been reaffirmed for five consecutive years. Because of our financial diligence and responsibility, we are able to offer benefits like the Loyalty Rewards Program to demonstrate our appreciation for member loyalty.

In 2017, we plan to allocate 7.5% of our eligible members’ 2016 premium into their Loyalty Rewards accounts.

Q: What are the financial rewards and advantages of being a CMIC policyholder?
A:  CMIC was formed by doctors and remains a mutual company that is owned and directed by healthcare professionals. Our members receive access to:

  • The Loyalty Rewards Program
  • Policyholder dividend distributions
  • Loss experience credits
  • Loss prevention programs providing premium credits
  • CME courses and medical practice resources available for download on our website.

Q: What is the purpose of the Loyalty Rewards Program?
A: As a mutual-company, we are always looking for ways to reward loyalty and provide our physicians with the best available insurance option. The Loyalty Rewards Program enables us to do both.

Q:Who is eligible to participate in the Loyalty Rewards Program?
A: Eligible members are individual insured physicians, podiatrists, chiropractors and dentists who have been insured by CMIC for at least the last five (5) consecutive calendar years.

Q: What if I’m not eligible in 2017, can I participate in the future?
A: Yes, members who are not eligible in 2017 will be automatically enrolled in this program once they reach the five calendar year threshold.

Q: Are part-time physicians eligible?
A: Yes, part-time physicians are eligible to participate.

Q: How is the Loyalty Rewards allocation determined?
A: The CMIC Board of Directors meets annually to decide what percentage of the prior calendar year’s premiums will fund the Loyalty Rewards Program for the following year.

Q: How is my Loyalty Reward calculated?
A: Every eligible member receives an annual reward based on the member’s prior calendar year premium and the allocation percentage approved by the CMIC Board of Directors for the renewal year.

Q: How does my Loyalty Rewards account grow?
A: Your account is the sum of each annual Loyalty Reward made by the Board of Directors.  

Q: Will my Loyalty Rewards Program account be affected if I have a claim?
A: No. The intent of this program is to reward members for their loyalty and dedication to delivering quality patient care.

Q: How do I become eligible to receive my Loyalty Rewards account?
A: To receive their account, members will provide proof of the following to CMIC:

  • The eligible member must permanently retire from the practice of medicine at age 55 or older with at least five (5) years of continuous coverage with CMIC, or
  • If an eligible member should become permanently disabled or deceased while insured by CMIC, the member, or beneficiary, will receive their Loyalty Rewards regardless of age.

Q: How is my account paid to me?
A: For those eligible to receive their Loyalty Rewards, a lump-sum amount will be paid.

Q: Are there tax implications from receiving my Loyalty Rewards?
A: The receipt by you of your Loyalty Rewards is a taxable event and will generate a Form 1099-Misc for the calendar year in which your Loyalty Rewards are paid. We advise consulting your personal tax advisor for further information.

Q: If I leave CMIC, will I still receive my Loyalty Rewards?
A: A member will lose their Loyalty Rewards account if they cancel coverage, or if their coverage is terminated by CMIC.

Q: If I am a part of a medical group, who receives the Loyalty Rewards?
A: This is between you and your group. Loyalty Rewards are calculated for each member. However, your account may be assigned to your group instead.

Q: Will the Loyalty Rewards Program be a permanent benefit for members?
A: While no program can be guaranteed to run indefinitely, CMIC’s intent is for our Loyalty Rewards Program to be a permanent benefit for our members.

For More Information on CMIC’s Loyalty Rewards Program:

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