A method of providing insurance (including professional malpractice
liability insurance) to consumers against unfavorable outcomes resulting
from services, and a method of rating risks associated with services. In
the first preferred embodiment, a policy limit is chosen by a patient (or
other consumer), a premium based on the policy limit is paid by the
patient, and if malpractice is committed by a health care provider (or
other professional), the patient is compensated up to the amount of the
policy limit. The patient signs an agreement that the liability of the
health care provider for malpractice will not exceed the policy limit.
Only then are medical services provided. Risk factors are evaluated for
the patient, the doctor, hospital or other health care provider, and the
procedures that are to be performed, and are used to determine the amount
of the premium, taking into account the policy limit chosen by the
patient.