PLF Policy 3.150
3.150 EXEMPTIONS FROM PLF PARTICIPATION
(A) Principal Office Not In Oregon. Active OSB licensees whose principal office is not in Oregon are not eligible to obtain primary coverage from the PLF, and are required to sign a request for exemption from PLF participation at least annually. OSB licensees in this category may be required to inform the PLF whether or not they engage in the private practice of law in Oregon, and if so, may be required to provide some or all of the following additional information to the PLF at least annually upon request: whether or not they maintain professional liability insurance which covers them for their private practice of law in Oregon, the name and address of the insurance carrier, the name of the insured, the coverage limits and deductible, the retroactive date of the insurance policy, the policy period, a copy of the declarations sheet, and a copy of the policy and any endorsements. OSB licensees are required to respond to information requests within 30 days.
(B) Principal Office In Oregon. Active OSB licensees not in private practice in the state of Oregon, either on a full-time or part-time basis with or without remuneration, are not subject to the annual assessment and must file a request for exemption based upon one of the following categories:
(1) employed exclusively as an attorney or licensed paralegal by a government entity or as a judge;
(2) employed exclusively by a corporation or business entity (including non-profit organizations but not including law entities);
(3) an employee or independent contractor with a legal aid or public defender office which provides professional liability coverage for the OSB licensee through an Acceptable Alternative Insurer as defined at Subsection (D);
(4) employed in a non-law related field;
(5) retired;
(6) employed as a law clerk/ supervised attorney/ supervised practitioner not engaged in the private practice of law as defined in Subsection (G)(7) below;
(7) unemployed;
(8) any other category which does not constitute the private practice of law in Oregon, or any activity which would be excluded or otherwise not covered by the PLF Primary Coverage Plan.
(C) OSB licensees temporarily admitted to perform legal services in Oregon pursuant to OSB Rules for Admission may claim an exemption from PLF coverage for any of the reasons set forth above in 3.150(B), or if they do not qualify for any such exemption, but maintaining coverage with an Acceptable Alternative Insurer. This exemption, regarding coverage through an Acceptable Alternative Insurer, however, is no longer available after the attorney is admitted as an active OSB licensee. Upon being admitted as an active licensee, the attorney must then purchase the mandatory coverage provided by the PLF.
(D) (1) An “Acceptable Alternative Insurer” is defined as an insurer which meets both of the following qualifications:
(a) The insurer is (1) an admitted insurer in Oregon, (2) a surplus lines insurer which has complied with all applicable Oregon statutes and regulations of the Insurance Division of the State of Oregon, or (3) a risk retention group or purchasing group formed under federal statute and registered with the Insurance Division of the State of Oregon.
(b) With respect to the coverage required pursuant to Policy 3.150A(3), the insurer provides claims made professional malpractice insurance covering the activities of the exempt attorney with coverage limits of at least $300,000 per claim/$300,000 aggregate, regardless of the amount of any applicable deductible.
(c) With respect to the alternative coverage required for exemption under Policy 3.150(C) regarding temporary admission to perform legal services in Oregon, any such coverage must be substantially equivalent to the mandatory coverage provided by the PLF, both in terms of applicable limits and scope of coverage, with the exception of any reasonable applicable deductible.
(2) Active OSB licensees claiming exemption under any exemption category which requires the OSB licensee to maintain professional liability coverage for the OSB licensee through an Acceptable Alternative Insurer must maintain the coverage at all times during the year while the exemption is in effect, and may be required to provide proof of such coverage upon request. Any OSB licensee who fails to maintain such coverage is subject to potential disciplinary action by the OSB.
(E) Requests for exemption will be handled in accordance with procedures adopted by the Chief Executive Officer. OSB licensees requesting exemption will be required to sign the following statement:
I hereby certify that I am exempt from the [year] assessment to the Professional Liability Fund for the following reason:
[List exemption categories]
I agree to notify the Professional Liability Fund immediately if I cease to be exempt at any time during [year].
(F) Exemptions from assessment must be applied for on an annual basis or when the OSB licensee’s status changes from private practice in accordance with the administrative procedures of the PLF. An exempt OSB licensee must notify the PLF of any change to private practice status and pay the prorated assessment due at that time.
(G) Special policy consideration has been given by the PLF Board of Directors to exempt OSB licensees in the following situations:
(2) [Reserved.]
(3) Amicus Curiae: An attorney who has claimed exemption from the PLF may appear and file an amicus curiae brief on behalf of another without remuneration.
(4) Pro Bono Service: OSB licensees who represent or perform services for clients on a pro bono basis are required to obtain PLF coverage. However, exempt OSB licensees may provide pro bono services through OSB-certified or other volunteer legal services programs that provide professional liability coverage for the volunteer through an Acceptable Alternative Insurer or the PLF’s Pro Bono Plan as defined at Subsection (D).
(5) Family Practice: An exempt OSB licensee may represent that person’s spouse, parent, adoptive parent, parent-in-law, step-parent, grandparent, child, adopted child, step-child, grandchild, son-in-law, daughter-in-law, sibling, adopted sibling, half sibling, brother-in-law, sister-in-law, or any member of the OSB licensee’s household and, if the household member is a spousal equivalent of the Covered Party, the Family Members of any such person. An exempt OSB licensee also may represent a business entity owned or controlled by one or more of these listed family members if the representation is excluded under the terms of the PLF Primary Coverage Plan.
(6) Student Legal Advisors and Attorneys With Law School Legal Clinics: OSB licensees who serve as student legal advisors at any college or graduate school, and OSB licensees who supervise law students serving clients through any law school legal clinic, are permitted and required to claim exemption from PLF participation under Subsection (B) on account of such activities so long as (a) they are employees of the college, graduate school, law school, or legal clinic, (b) the services they provide to students or clients are within the scope of their employment, and (c) any claim for alleged malpractice against them would be insured or indemnified by their employer.
(7) Law Clerks/ Supervised Attorneys/ Supervised Practitioners (Including Retired and Active Pro Bono OSB licensees): An OSB licensee may perform legal research and writing without obtaining PLF coverage provided:
(a) the OSB licensee’s work is reviewed and supervised by an OSB licensee with PLF coverage (or an OSB licensee who is permitted to engage in private practice while claiming exemption from the PLF);
(b) the OSB licensee makes no strategy or case decisions;
(c) the OSB licensee does not hold himself or herself out to any client as an attorney or represent any party;
(d) the OSB licensee signs no pleadings or briefs;
(e) the OSB licensee attends no depositions as the attorney of record;
(f) the OSB licensee makes no court appearances as the attorney of record;
(g) the OSB licensee does not use the title “attorney,” “attorney at law,” “lawyer,” “licensed paralegal,” or any other indication that the individual is able to act as an independent legal professional on any correspondence or documents; and
(h) the OSB licensee is not listed in the firm name or on the firm letterhead as an attorney, licensed paralegal, or firm member (unless specified as law clerk or retired). If the OSB licensee is retired, the OSB licensee’s name may be listed on the firm letterhead as “retired” or “of counsel (retired),” or similar designation that makes clear the OSB licensee is not engaged in the private practice of law.
(8) Arbitration and Mediation: An OSB licensee may serve as an arbitrator without obtaining PLF coverage provided the OSB licensee’s services are limited to serving as an arbitrator and do not include representing any of the parties in the arbitration. This exemption is available only if the OSB licensee’s practice is limited to serving as an arbitrator (or other exempt activity). An OSB licensee claiming exemption under this provision may not use the title “attorney,” “attorney at law,” “attorney/arbitrator,” “lawyer,” “legal services,” or similar phrase on any stationary, cards, billing forms, or professional listings unless the title is followed by an asterisk or other mark and the phrase “*Not engaged in the private practice of law” appears on the same page. However, attorneys claiming exemption under this category may use the title “J.D.” after their name.
An OSB licensee may perform mediation services without obtaining PLF coverage provided that the OSB licensee’s practice is exclusively limited to mediation (or other exempt activity) and the OSB licensee complies with RPC 2.4 relating to mediation. An OSB licensee claiming exemption under this provision may not use the title “attorney,” “attorney at law,” “attorney/mediator,” “lawyer,” “legal services,” “licensed paralegal,” or similar phrase on any stationary, cards, billing forms, or professional listings unless the title is followed by an asterisk or other mark and the phrase “*Not engaged in the private practice of law” appears on the same page. However, attorneys claiming exemption under this category may use the title “J.D.” after their name.
(9) Non-Covered Activities: An OSB licensee who is otherwise exempt from participation in the PLF may engage in law-related activities and represent a client without obtaining PLF coverage if all of the OSB licensee’s activities would be excluded or otherwise not covered by the PLF Primary Coverage Plan.
(10) Government Activity Exemption: An OSB licensee who is otherwise exempt from participation in the PLF may act on behalf of a government entity as a public official, employee or in any other capacity that comes within the defense and indemnity requirements of ORS 30.285 and 30.287, or similar state or federal statute rules or case law.
(11) Active Pro Bono and Retired Status: OSB licensees who maintain Active Pro Bono or Retired status with the OSB are limited by the OSB as to their permitted activities. OSB licensees in these license statuses are exempt from PLF participation by definition and will not receive an annual billing statement and request for exemption form.
(12) Employed OSB licensees: Employed OSB licensees claiming exemption under subsections (B)(1) through (3) above may represent a third party in an attorney-client relationship so long as such representation is within the OSB licensee’s scope of employment. Examples include employment by an insurance company, labor organization, member association, or governmental entity which involves representation of the rights of insureds, union or association members, clients of the employer, or the employer itself. Employment by a placement, temporary or similar agency does not qualify for exemption under subsections B(1)-(3).
(H) “Private practice of law” shall be consistent with the coverage terms and definitions in the PLF Primary Coverage Plan.
(I) All requests for exemption or failures to request an exemption are subject to verification by the OSB licensee upon request by the PLF. Any misstatement may constitute a violation of RPC 8.4(a)(3) and may be the basis for disciplinary proceedings.