Strong Defense Against Claims Continues

As jury awards skyrocket and news of plaintiffs' successes continue to make headlines, some comfort can be found in knowing that medical malpractice plaintiffs win in court far less than do the hospitals and health care professionals they sue. Nationally, plaintiffs lost 60% of medical malpractice cases that went to trial in 2000, according to Jury Verdict Research. For Princeton Insurance policyholders, the results are even better; in 2001, defendants prevailed in nearly 80% of cases resolved by the courts, including dismissals, summary judgments and defense verdicts. Unfortunately, the sizes of the awards in cases in which the plaintiffs prevail is rising. The median jury award in 2000 (the most recent year that data is available) was $1 million; that is a 100% increase over 1995's median award.

Princeton Insurance continues to be proactive when it comes to protecting the professional interests of our policyholders. Exclusive use of the Forensic Abstract fraud detection software to identify questionable elements in plaintiffs' personal histories means a better opportunity to mitigate damages, or eliminate them altogether.

TABLE OF CONTENTS

Cover Page

Letter to Policyholders

A Year of Market Turmoil

Princeton's Legacy Continues

2001 Financial Statements

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