Thank you for contacting justanswer.
Your situation is no different that those involving mutual insurance companies and credit union memberships. The resolution of the issue could also depend upon how the IRS would treat the distribution to members as I explain below.
Typically the question is "who is the member for purposes of the distribution?" Even though your benefit package may include the payment of the insurance premiums, you are the member for purposes of insurance coverage and any other relationship aspects with PICA. Please review PICA's membership agreement for its definition of "member" (I am unable to access the policy benefits online as that area is restricted to members.)
Typically a member is considered to be those recorded as holding an ownership/policyholder interest. As the company would typically be considered an insurance reciprocal due to its ownership by its policyholder doctors et al, those owners would have the membership rights in the medical malpractice insurance company (governance, voting rights, etc.) not the individual that pays the premium (consider other situations, for example, where others pay for insurance coverages, however, are not insureds or members. Another example, many companies pay or reimburse memberships in organizations, however, the individuals are the members of those professional organizations.)
You may be able to resolve the matter with your group and its attorney by referring them to the following three (3) sources:
1. The PICA policy and its definition of "members" (supported by the fact that the distribution check was issued to you as the member)
2. IRS determination - you, not the group will receive the special dividend Form 1099 distribution from PICA and the IRS will look to you for any tax payment on the long term capital
3. Florida insurance law regarding reciprocal insurance will also help them understand the member relationship to PICA. I am providing a direct link to that portion of the Florida law with its many references to "members":
Although this is necessarily a brief review, I hope it is responsive to your question and that the information provides you with sufficient details to make your case with the group and its attorney. If you would like further clarification, please let me know.