Australia isn’t the only place having a few problems with medical indemnity insurance, and the argument isn’t very different, either. Nevada Governor Kenny Guinn has given insurers, lawyers and medicos 45 days to sort out rocketing premiums. If a compromise can be reached, he will call a special session of the Nevada Legislature to put the proposal into law.

The medical industry, led by Las Vegas-based specialists, has threatened to close up shop because of premiums rising up to four times as high as they were 12 months ago. More than 100 have reportedly already moved out of the state. The insurers are blaming high awards by juries and a blowout in frivolous lawsuits.

The plaintiff lawyers have accused the insurers of poor underwriting, and say falling equity markets are the real reason the insurers are unprofitable. Insurance industry reform and caps on jury awards for pain and suffering are among the matters Governor Guinn has ordered the parties to discuss.