PLF Policy 3.620

  1. Coverage
  2. PLF Policy 3.620

Extended Reporting Coverage

This Plan for Extended Reporting Coverage is subject to amendment or termination by the Board of Directors at any time. No rights are vested as to Extended Reporting Coverage (including rights as to the cost or scope of coverage) until such time as an OSB member has obtained Extended Reporting Coverage.

(A) Definitions: 
 
(1) Regular Coverage means the current Primary Coverage Plan maintained by OSB members engaged in the private practice of law.
(2) Retirement means the “last act” in private practice in Oregon which would require an OSB member to maintain current PLF coverage under applicable PLF statutes and policies, whether the OSB member retires, dies, leaves private practice, or begins private practice in another state after such date.
 
(B) Time When Extended Reporting Coverage Takes Effect: An OSB member’s Extended Reporting Coverage (ERC) takes effect as of the first day of the next calendar month following an OSB member’s date of retirement. ERC will be governed by the terms and conditions of the PLF Primary Coverage Plan in effect in the year of retirement.
 
Example: OSB Member retires on August 31, 2020. The ERC would take effect for covered claims first made against the OSB member on or after September 1, 2020. The 2020 Primary Coverage Plan would apply to all ERC claims.
Example: OSB Member retires on January 4, 2021. Member must obtain regular 2021 coverage. ERC takes effect on February 1, 2021.
Example: OSB Member retires on December 31, 2020. ERC takes effect on January 1, 2021.
 
(C) Cost of ERC: There is no cost for Extended Reporting Coverage. ERC is granted automatically to OSB members who stop maintaining coverage under the PLF Primary Coverage Plan. However, ERC is not granted to OSB members who are in default in payment of any amounts due to the PLF.

(D) Limits of Coverage: An OSB member who obtains ERC does not obtain new Limits of Coverage as defined at Section I of the PLF Primary Coverage Plan. Instead, the OSB member obtains “extended reporting” coverage based upon the Primary Coverage Plan in effect during the last year of coverage. This meansthe Coverage Period during the last year of regular coverage is extended to a single lifetime Coverage Period for the OSB member. The defense and indemnity costs for claims made during the last year of coverage will reduce the Limits of Coverage available to the OSB member for claims made in the years after retirement, when ERC is in effect. There is no coverage for claims based on acts, errors, or omissions which occur after the ERC has commenced.
 
Example: OSB Member retires on August 31, 2020. All covered claims made against the OSB member after that date will be covered by the member’s extended reporting coverage. When ERC takes effect on September 1, 2020, the reporting period for the member’s regular 2020 coverage will be extended to a single lifetime reporting period commencing September 1, 2020. All claims made in 2021 or later years would fall within this single life-time reporting period, and would be subject to all terms and conditions of the 2020 Primary Coverage Plan and limited to the remaining Limits of Coverage available under the 2020 Primary Coverage Plan.
Example: Same facts as in the preceding example. The OSB member had one claim made in May, 2020 which was closed in 2021 with a combined defense and indemnity cost of $85,000 (including the member’s entire Claims Expense Allowance). Assuming the 2020 Limits of Coverage were $300,000 plus a Claims Expense Allowance of $50,000, only $265,000 in coverage remains available for all claims made during the balance of 2020 or in 2021 or later years (when the ERC is in effect).

(E) Conversion of Regular Coverage to ERC During the Plan Year: A prorated refund of an OSB member’s PLF assessment may be available under the provisions of PLF Policy 3.400 if an OSB member retires during the Plan Year.

(F) Filing Request for Exemption After Becoming Exempt from Coverage:An OSB member who retires but remains an active member of the Oregon State Bar will receive a PLF Billing Statement each year and should complete a Request for Exemption annually. If the OSB member does not file a Request for Exemption or other request for ERC within four months after the end of the last Primary Coverage Plan year for which the OSB member has regular coverage, the PLF will automatically grant ERC. No ERC will be granted if the OSB member has other insurance coverage which applies to the claim. ERC applies only to claims arising from acts in the private practice of law which occurred during a period of regular PLF coverage as provided in the applicable Primary Coverage Plan.
 
Example: OSB Member retires on December 31, 2020. The OSB member is granted ERC upon filing a Request for Exemption from Primary Coverage (which should be filed by the default date of January 10, 2021).
Example: Same facts as prior example. OSB Member fails to file a Request for Exemption by the default date (January 10, 2020). If the member does not correct this oversight, the member will eventually be suspended from membership in the Oregon State Bar. However, even if the OSB member takes no action and is suspended, the PLF will grant ERC on May 1, 2021, effective January 1, 2021. The ERC based on the member’s 2020 Primary Coverage Plan will apply to claims first made on or after January 1, 2021 arising from the member’s private practice of law prior to 2021.
Example: OSB Member has 2020 Primary Coverage, but does not either pay for 2021 coverage or request exemption by the January 10, 2021 deadline. A claim is made against the OSB member in February, 2021 based on an alleged error occurring in October 2020. Because the OSB member has not obtained Primary Coverage in 2021, the PLF will provisionally apply ERC to the claim. If the member obtains Primary Coverage in 2021 by the final date for obtaining the coverage, the 2021 Primary Coverage Plan will apply to the claim; otherwise, ERC will apply to the claim. If the OSB member fails to act within the time limits prescribed, the OSB member may be suspended from membership in the Bar but ERC based on the OSB member’s 2020 Primary Coverage Plan will apply to the claim.
Example: OSB Member retires on December 31, 2020 and commences practice in California on January 1, 2021. OSB Member obtains malpractice insurance in California which covers new claims from the member’s prior practice in Oregon. A claim is made on June 15, 2021 based on the OSB member’s prior practice in Oregon. ERC does not apply to the claim.