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 attorney has obtained Extended Reporting Coverage.
(1) Regular Coverage means the current Primary Coverage Plan maintained by Oregon attorneys engaged in the private practice of law.
(2) Retirement means the “last act” in private practice in Oregon which would require an attorney to maintain current PLF coverage under applicable PLF statutes and policies, whether the attorney retires, dies, leaves private practice, or begins private practice in another state after such date.
(B) Time When Extended Reporting Coverage Takes Effect
: An attorney’s Extended Reporting Coverage (ERC) takes effect as of the first day of the next calendar month following an attorney’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: Attorney retires on August 31, 2020. The ERC would take effect for covered claims first made against the attorney on or after September 1, 2020. The 2020 Primary Coverage Plan would apply to all ERC claims.
Example: Attorney retires on January 4, 2021. Attorney must obtain regular 2021 coverage. ERC takes effect on February 1, 2021.
Example: Attorney 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 attorneys who stop maintaining coverage under the PLF Primary Coverage Plan. However, ERC is not granted to attorneys who are in default in payment of any amounts due to the PLF.
(D) Limits of Coverage
: An attorney who obtains ERC does not obtain new Limits of Coverage as defined at Section I of the PLF Primary Coverage Plan. Instead, the attorney obtains “extended reporting” coverage based upon the Primary Coverage Plan in effect during the last yearofcoverage. ThismeanstheCoveragePeriod during the last year of regular coverage is extended to a single lifetime Coverage Period for the attorney. The defense and indemnity costs for claims made during the last year of coverage will reduce the Limits of Coverage available to the attorney 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: Attorney retires on August 31, 2020. All covered claims made against the attorney after that date will be covered by the attorney’s extended reporting coverage. When ERC takes effect on September 1, 2020, the reporting period for the attorney’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 attorney had one claim made in May, 2020 which was closed in 2021 with a combined defense and indemnity cost of $85,000 (including the attorney’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 Yea
r: A prorated refund of an attorney’s PLF assessment may be available under the provisions of PLF Policy 3.400 if an attorney retires during the Plan Year.
(F) Filing Request for Exemption After Becoming Exempt from Coverage
: An attorney 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 attorney 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 attorney has regular coverage, the PLF will automatically grant ERC. No ERC will be granted if the attorney 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: Attorney retires on December 31, 2020. The attorney 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. Attorney fails to file a Request for Exemption by the default date (January 10, 2020). If the attorney does not correct this oversight, the attorney will eventually be suspended from membership in the Oregon State Bar. However, even if the attorney takes no action and is suspended, the PLF will grant ERC on May 1, 2021, effective January 1, 2021. The ERC based on the attorney’s 2020 Primary Coverage Plan will apply to claims first made on or after January 1, 2021 arising from the attorney’s private practice of law prior to 2021.
Example: Attorney 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 attorney in February, 2021 based on an alleged error occurring in October 2020. Because the attorney has not obtained Primary Coverage in 2021, the PLF will provisionally apply ERC to the claim. If the attorney 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 attorney fails to act within the time limits prescribed, the attorney may be suspended from membership in the Bar but ERC based on the attorney’s 2020 Primary Coverage Plan will apply to the claim.
Example: Attorney retires on December 31, 2020 and commences practice in California on January 1, 2021. Attorney obtains malpractice insurance in California which covers new claims from the attorney’s prior practice in Oregon. A claim is made on June 15, 2021 based on the attorney’s prior practice in Oregon. ERC does not apply to the claim.