In a reciprocal, the policyholders share insurance risk, paying premium and contributing capital to the program.

The program, named Florida Healthcare Providers Insurance Exchange, would be headquartered in Miami. Duane Morris is a law firm of 550 attorneys.

In a statement, the firm said the program would be similar to its Pennsylvania Exchange.

"Recognizing a market need for medical malpractice insurance coverage in Florida, we are utilizing the successful experience of our Pennsylvania Exchange, which provides medical malpractice insurance to physicians in Pennsylvania," said Charles C. Pappy III, a partner in charge of Duane Morris' Miami office.

Thomas S. Gaudiosi would serve as president and chief executive officer of the program.

David Fridling, senior media relations manager for Duane Morris, said the program would be open to any physician so long at they meet the underwriting conditions of the program and agree to the program's reporting requirements, something that not all doctors may want to do.

He said he was not sure what the coverage limits would be pending approval.

Mr. Fridling said Florida Exchange has just filed its application with the department and hopes approval will come in time to issue policies taking effect Jan. 1, 2004.

Duane Morris said it would also look to partner with self-insured hospitals and health systems "to work cooperatively on risk management and claims management efforts."

In Kentucky, the Louisville, Ky.-based Kentucky Hospital Association said it has formed the Kentucky Hospital Insurance Co. to provide liability and malpractice coverage to 22 member hospitals.

KHIC is a Kentucky-based captive insurer, the first of this type in the state. The plan will be capitalized with credit assistance provided by Republic Bank & Trust Co.

Guy Carpenter & Co. Inc. acted as the broker and Lloyd's of London syndicates will provide reinsurance.

The plan offers primary professional-general liability limits between $1 million and $3 million, with optional umbrella coverage up to $10 million.