For the sixth year in a row, the TLIE Board of Directors is pleased to announce the approval of a distribution to our insureds. This year's distribution matches the one issued in 2001, again being $1.5 million.

As a reciprocal insurance exchange owned by its members, TLIE is allowed to make such distributions (after examining the financial impact on the company) in response to favorable operating results. Over the past six years,a total of $14 million has been distributed to our TLIE insureds.

The past year and a half has taken its toll on insurors and reinsurors as well, impacting virtually every line of insurance to some degree. Professional liability has been no exception.

You may recall that in Issue Number 2 of the Advisory earlier this year, we mentioned that TLIE's reinsurance rates increased somewhat even though the financial health and stability of TLIE is the best in its history, and our A.M. Best rating is "A" (Excellent).

With a decreasing trend in the frequency of claims, and continued solidarity of TLIE's position, we are hopeful of favorable negotiations of reinsurance rates with appropriate and reliable sources in 2003.

TLIE continues to monitor the financial health of all present and past reinsurers participating on our program. When necessary, we have taken appropriate action to lessen the financial impact of any potential problems.