Trust Rewards Frequently Asked Questions
Why did TMLT start the Trust Rewards Program (Program)?
The idea behind the Program is to reward physicians for their loyalty and to encourage them to remain TMLT policyholders.
Who is eligible for the Program?
All full-time and part-time individual physicians who are insured by TMLT under an individual or group policy are eligible to participate in the Program.
I am insured on a full time equivalent policy. Do I qualify for the Program?
No, you are not eligible.
Am I automatically enrolled in the Program?
Yes, all eligible physicians are automatically enrolled in the Program upon obtaining coverage through TMLT.
What happens when I no longer continue my coverage with TMLT and coverage is provided by an unaffiliated carrier?
You forfeit the balance in your Trust Rewards account.
What happens if I leave and later come back to TMLT? Can I participate in the Program again?
Yes, you can be enrolled again, but the funds accumulated in the past were forfeited when you terminated your previous coverage, unless your account is in a suspended status. If you previously retired and received disbursement of your Trust Rewards account, you will not be eligible to enroll again.
When and for how long can my Trust Rewards account be placed in suspended status?
Your account may be placed in suspended status should you cancel your policy or cease coverage through TMLT. An account can remain in suspended status for up to 60 months so long as you do not obtain coverage from an unaffiliated insurer. Upon obtaining coverage through an unaffiliated insurer, or should you not return to being insured with TMLT or an affiliate before the end of the 60 month suspension period, your Trust Rewards account balance will be forfeited.
What happens when my group or my employer pays the premium?
The Program is designed to benefit the individual physician. Your balance can grow regardless of who pays the premium. However, you can designate the group to be the recipient of the Program in case of your qualified retirement, disability, or death.
When will I be able to collect my Trust Rewards benefits?
You are eligible for distribution of your Trust Rewards benefits upon your qualified retirement, disability, or death. We must be notified if a qualifying event occurs and receive proper documentation.
What is a qualified retirement?
A qualified retirement is the complete and permanent withdrawal from the practice of medicine by an enrolled physician if, at the time of such retirement, the Participant (1) holds a medical license in good standing with the Texas Medical Board, (2) is 50 years of age or older, and (3) has been insured continuously with TMLT for at least three consecutive years immediately preceding retirement.
What is your definition of disability?
Disability means that the individual insured physician of TMLT: (1) is unable to practice medicine in his or her trained specialty due to a medically determinable physical or mental impairment; and (2) is under a physician’s care for such impairment and it is expected to be permanent or is expected to last for a continuous period of not less than twelve (12) months.
Who gets the funds in the event of my death while still insured with TMLT? Do I let you know who my beneficiary is?
In case of your death, the funds become part of your estate, unless you have completed the optional group designation form. You can designate your beneficiaries when planning your estate settlement.
How can I check my account balance?
Enrolled physicians, group administrators, and agents can view current Trust Rewards balances for active accounts on myTMLT, our member portal. If you do not have a myTMLT account, you can sign up at www.tmlt.org/mytmlt and following the on-screen instructions. If you need assistance, please contact the TMLT Customer Service team or call 800-580-8658 ext. 5050.
Am I guaranteed to get the balance in my account?
No. Any funds made available for the benefit of a Trust Rewards account shall be unrestricted surplus of TMLT until and unless distributed to the participant and, as such, remain available to TMLT for the satisfaction of policyholder obligations and general creditors. No participant shall have any individual claim to any funds made available for the benefit of a Trust Rewards account until and unless such funds are distributed to the participant. All disbursements are subject to board approval.
If TMLT non-renews my policy, do I lose the balance in my Trust Rewards account?
Yes, that is correct. However, TMLT seldom non-renews policies and the decision to non-renew is made by our Underwriting Committee, which consists entirely of physicians.
Will my claims experience affect my Trust Rewards account?
Your account will only be affected if you are non-renewed or your policy is subject to a surcharge due to poor loss history. New allocations are suspended during the time your policy is surcharged, but you will not forfeit your existing balance.
What are the tax implications of this Program for me?
The Program is structured to avoid tax liability until the funds are distributed to you.
Do you withhold any taxes from the distribution?
No, when you receive the funds, it is your responsibility to meet your tax obligations.
How does the IRS know I received the money?
We will issue a 1099-MISC for the year in which the balance was distributed. Please consult your tax advisor regarding the distribution.
Where can I find a copy of the plan document?
The plan document is available here.
Am I able to apply my balance to the purchase of a reporting endorsement (tail coverage)?
Are ancillary staff eligible?
No, the Program is designed for physicians only.
I have not been able to find the answer to my question. Who can assist me?
Contact the TMLT Customer Service team or call 512-425-5050.