Trust Rewards plan document

1. DEFINITIONS

a. “Board” refers to the Board of Trustees of TMLT, including any committee thereof duly authorized and empowered to take actions regarding the Program.

b. “Disability” means the inability of an enrolled physician to practice medicine due to a medically determinable physical or mental impairment for which the enrolled physician is under a physician’s care and which is expected to last for a continuous period of not less than twelve (12) months.

c.  “Eligible physician” means an individual physician insured by TMLT, individually or as part of a group policy, who is otherwise qualified to participate in the Program. Physicians covered by a per-patient policy and those physicians covered as part of a full time equivalency, are not eligible to participate in the Program.

d. “Enrolled physician” refers to an eligible physician who has not opted out of the Program and for whom a Trust Rewards account has been established.

e. “Retirement” means the complete and permanent withdrawal from the practice of medicine for compensation by an enrolled physician if, at the time of such retirement, the enrolled physician (1) holds a medical license in good standing with the Texas Medical Board, (2) is 50 years of age or older, and (3) has been insured continuously with TMLT or an affiliated insurer for at least three consecutive years immediately preceding retirement.

f. “Trust Rewards account” and/or “account” refers to the account established by TMLT on behalf of and for the benefit of an enrolled physician pursuant to this Plan Document.

2. Eligibility for a Trust Rewards account

a. The Board, in its sole discretion, shall have the right to determine the eligibility of any insured to participate in the Program.

b. The Board may alter, amend, suspend, terminate, or otherwise change its determination regarding eligibility in its sole discretion and without prior notice to any affected enrolled physician(s).

c.  All determinations regarding eligibility for a Trust Rewards account made by the Board shall be final and non-appealable.

3. Funding for a Trust Rewards account

a. The Board, in its sole discretion, shall determine if and when funds will be made available for the benefit of the Trust Rewards accounts.

b. The Board, for each and any contribution of funds to be made available for the benefit of the Trust Rewards accounts, shall determine the method and formula to be used to determine the allocation for each enrolled physician.

c. The Board’s determination whether to make funds available for the benefit of the Trust Rewards accounts may be made periodically, but the Board’s determinations are not intended to be made less frequently than annually.

d.  Any funds made available for the benefit of the Trust Rewards accounts shall be unrestricted surplus of TMLT until distributed to an enrolled physician and, as such, remain available to TMLT for the satisfaction of policyholder obligations and general creditors. No enrolled physician shall have any individual claim to any funds made available for the benefit of the Trust Rewards accounts until such funds are distributed.

e.  All determinations regarding funding for the Trust Rewards accounts made by the Board shall be final and non-appealable.

4. Distribution of Trust Rewards account funds

a. Funds allocated to an enrolled physician’s account, if any, can only be distributed upon his or her death, disability, or retirement. The Board shall determine whether any condition to the distribution has been satisfied in its sole discretion.

b.  Except as otherwise set forth in this Section 4(b), if not eligible for distribution under Section 4(a), an enrolled physician will forfeit his or her account balance upon the termination, cancellation, or non-renewal of their coverage with TMLT.  However, an enrolled physician’s account balance may not be forfeited if the enrolled physician (1) obtains replacement coverage from an insurer affiliated with TMLT; or (2) temporarily ceases to be covered by TMLT or an affiliated insurer and does not obtain medical liability insurance coverage from another carrier.  Any such temporary cessation of coverage under item (2) may not extend for longer than sixty (60) months.  At the expiration of the sixty (60) month suspension period, if the enrolled physician has not re-obtained coverage from TMLT or an affiliated insurer, he/she will forfeit their account balance.  An enrolled physician will not be eligible for any additional allocations to his or her account during any period of time for which item (1) or (2) outlined above applies.  Once a physician forfeits a Trust Rewards account balance, that physician may re-enroll in the Program upon re-establishing coverage with TMLT and meeting all eligibility requirements of the Program.  Upon re-enrollment, a new Trust Rewards account will be established with no carryover of any balance previously forfeited.

c. TMLT reserves the right to require the submission of reasonable evidence of an enrolled physician’s death, disability, or retirement prior to the distribution of any funds.

d.  TMLT shall make all distributions to the enrolled physician, his or her estate, or designated practice group.

e.  The Board, in its sole discretion, shall determine if the conditions for distribution of an enrolled physician’s account have been satisfied.

f. The Board may alter, amend, suspend, terminate, or otherwise change the requirements for distribution of funds allocated to a Trust Rewards account in its sole discretion and without prior notice to the enrolled physicians.

5. General

a.  The Board may withdraw, cancel, or modify this Plan Document without notice. Upon any amendment, a current copy of the Plan Document shall be made available on the TMLT website.

b.  An enrolled physician’s account, and any allocated funds, cannot be transferred to any other person or entity, except that an enrolled physician may assign any final distribution of funds from the account to the medical practice where the enrolled physician is employed and/or practicing at the time of the final distribution. The enrolled physician may make the assignment at any time, and may amend or withdraw the assignment at any time.  Such assignment is automatically revoked at the time the enrolled physician ceases his or her employment or association with the medical practice.

c.  The Program shall be governed by the laws of Texas without regard to principles of conflict of laws. For any dispute arising under the Program, jurisdiction and venue shall be in Travis County, Texas. The enrolled physician hereby consents to the exclusive jurisdiction and venue of such courts with respect to such disputes.

d.  The Program is intended to be in full conformity with governing law. If any provision of the Program conflicts with such governing law, such provision shall be deemed to be modified to comply with such law.

e.  Any provision of the Program that is prohibited or unenforceable in any  jurisdiction, shall, as to such jurisdiction, be of no effect to the extent of such prohibition or unenforceability without invalidating the remaining provisions of the Program or affecting the validity or enforceability of such provisions in any other jurisdiction.

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