Were you "named" in the suit? Yes, as a matter of fact, you were named in the suit. So if you want to complete your application truthfully, then you have to answer "yes" to this question. However, in an addendum to the application, you can qualify your answer by giving the additional circumstances you've revealed. The danger of lying and responding with a "no" is: #1, at the end of the application you are attesting to the fact that everything you stated is true, and #2, if they discover that you've lied, this can't bode well for your application. In fact, they may (and probably will) reject you for providing false information. Good luck!
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I agree 100% with my colleague, Mr. Castagliuolo. Whether you are applying to be a lawyer or a doctor, the governing licensing agency such as in your case FL Board of Medicine will not look upon this lightly. An application must be truthful even if it was a seat belt violation let alone a medical malpractice lawsuit. You should worry about being truthful rather than what others' judgment may be towards you. Honesty is the best policy. Good luck.
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There is no point in lying on your malpractice application. First, the insurance company has access to databases it can use to figure out if you are truthful. If you are untruthful, they will decline to cover you. Second, if the carrier doesn't figure it out at application time, and if you are so unfortunate to be named in a lawsuit again, the plaintiff's attorney will figure it out, and the carrier will then know--it will decline coverage. That is the last thing you want to have happen! So be truthful; tell the carrier everything about the claim.
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No, it would not be ok. You can consult an insurance coverage attorney or medical malpractice attorney on this if you wish. I can't see how it would be anything but a material misrepresentation on your application and that would not go well for you.