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Seeking Disability After Losing a Medical License
A medical practitioner who loses his or her license to practice loses not only a career, but also the income that came from it. The chances of obtaining a license in another state (despite some notorious publicity to the contrary) can be very problematic. What state's licensing board will welcome the doctor whose license was revoked due to egregious medical malpractice? The financial consequences of the loss can be devastating, and alternative sources of income may be hard to pin down.
For some physicians in this position there may be an alternative to financial ruin. If the doctor carried disability insurance and can show that the malpractice that led to the loss of the license resulted from a mental or physical impairment, he or she may be able to collect payments from the insurer.
Certainly the doctor who suffers a physical or mental impairment and makes a disability claim before his license is pulled has a good chance of obtaining compensation. However, insurers faced with a claim from physician whose right to practice medicine has already been lost are likely to protest. Still, depending upon the circumstances, all may not be lost. Case in point: an ex-physician in New York recently won the right to pursue a claim against his insurer despite the fact that he did not make a claim for disability benefits until after his license to practice medicine had been revoked because of his repeated medical mistakes. Jacobs v. Northwestern Mutual Life Ins. Co., 021913/08, NYLJ 1202477828014, at *1 (Sup, NA, Decided Dec. 23, 2010).
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