PLF Policy 7.600

Additional Excess Program Rules

(A)          Former firm members may inquire in writing regarding their former law firm’s excess coverage status. Information provided may include whether the former member’s firm had or has excess coverage, the coverage period (and applicable coverage limits, if any), and whether the former member is listed on the firm’s coverage documents.

(B)          Coverage Limits and Primary Coverage: A firm which obtains excess coverage from the PLF must obtain the same amount of excess coverage for each member of the firm. PLF excess coverage will not be extended to any firm which includes any firm member who does not maintain current PLF Primary coverage unless the firm obtains coverage for the firm member under the provisions of Section (D) below. Firms will not be offered excess coverage limits over $1.7 million unless they have maintained excess coverage of at least $1.7 million with some carrier for one year prior to applying for PLF excess coverage. Firms may be offered excess coverage over $1.7 million without having had excess coverage of at least $1.7 million with some carrier for one year prior to applying for PLF excess coverage if the firm does not present an unacceptable level of risk and the firm can demonstrate that the reason for the limits increase is due solely to client coverage requirements (See Section (M) below regarding coverage limits restrictions at the $9.7 million level).

(C)          Prior Acts Coverage/Retroactive Date:

              (1)          The retroactive date applicable to claims made under the excess coverage plan will be the same retroactive date that applies under the applicable PLF Primary Coverage Plan or Plans or the firm’s retroactive date, whichever date is more recent.
 

 

Period between Firm Retroactive Date and Start of Coverage Period	Excess Assessment Credit
0 -12 months 12-24 months 24-36 months 36-48 months 48-60 months 60+ months	50 percent 40 percent 30 percent 20 percent 10 percent No credit

              The PLF may not offer the credit to a firm for the underwriting considerations stated at Policies 7.250 and 7.300.

(D)          Non-Oregon Attorneys and Out of State Attorneys:

               (1)          Firms with non-Oregon attorneys or Oregon attorneys who principal office is not in Oregon may be offered coverage subject to the PLF Excess Program underwriting criteria, the restrictions of this section and any other additional underwriting and coverage limitations imposed by the PLF or its reinsurers. Registered patent agents will be treated the same as non-Oregon attorneys. Non-Oregon attorneys whose principal office is in Oregon must be practicing in areas of law that do not require licensure with the OSB.

               (2)          The PLF may establish conditions, terms, and rates for coverage for firms with non-Oregon attorneys and/or non-resident Oregon attorneys, including additional endorsements and exclusions. The PLF may offer “drop-down” coverage for the firm for any firm members not covered by the PLF Primary Coverage Plan, subject to such deductibles or self-insured retentions as the PLF may establish.
 
               (4)          Unless otherwise determined by the PLF, firms will be charged for excess coverage for non-Oregon and out-of-state attorneys at a per-attorney rate equal to the current primary assessment plus the rate for excess coverage applicable to other firm attorneys.

               (5)          Coverage for non-Oregon and out-of-state attorneys will be subject to a deductible of $5,000 per claim.

(E)          Installment Payment Plan:

               (1)  Firms will have the option of paying the excess coverage assessment on an installment basis as follows:
 

Payment Due Date	Percent of Total
January 1	40%
May 1	35%
September 1	25%

                (2)          Firms that choose the installment payment plan will be charged a service charge equal to $25 plus interest of 7% per annum on the outstanding balance. The service charge must be paid with the first installment and is non-refundable. Installment payments are only available in a given year if the coverage period for a firm begins prior to March 1; if the coverage period for a firm begins on March 1 or later, the firm will be required to pay its annual excess assessment in a single payment.

                (3)          Firms will have a ten-day grace period for payment of installments. If payments are not received during the grace period, the firm’s excess coverage plan will be canceled as provided under the excess coverage plan. The PLF may, but will not be required to, reinstate coverage if payment of an installment is made within ten days after the expiration of a grace period, and may require that the balance of the firm’s assessment for the year be paid in full as a condition of reinstatement.

(F)          Cancellation: If an excess coverage plan is canceled by the PLF, the assessment will be determined on a pro rata basis. If excess coverage is canceled, the firm will still remain liable for supplemental assessment but on a pro rata basis according to the period of coverage during the year.

(G)         Predecessor Firm Endorsement:

              (1)          A former firm which does not meet the Excess Plan definition of a “predecessor firm” may be added for underwriting reasons as a “predecessor firm” by special endorsement. The following conditions, among others, must ordinarily be met:

                           (a)          The former firm is no longer engaged in the practice of law;

                           (b)          The former firm is not covered by any excess policy, including extended reporting coverage;

                           (c)           The former firm and the firm members who worked for the firm do not present an unacceptable level of risk in the view of the PLF; and

                           (d)          At least 50 percent of the firm attorneys who were with the former firm during its last year of operation and who are presently engaged in the private practice of law in Oregon will carry current PLF excess coverage during the year.

The PLF may impose special limitations or conditions and may impose an additional assessment for underwriting reasons as a condition to granting the endorsement, or may decline to grant the endorsement for underwriting reasons.

              (2)          No firm may be listed as a predecessor firm (by endorsement or otherwise) for the same or an overlapping period of time on more than one Excess Plan.

(H)         Changes After the Start of the Coverage Period

              (1)          Except as provided in subsection (2), firms are not required to notify the PLF if an firm member joins or leaves the firm after the start of the Coverage Period, and will neither be charged a prorated excess assessment nor receive a prorated refund for such changes. New firm members who join after the start of the Coverage Period will be covered for their actions on behalf of the firm during the remainder of the year, but will not be covered for their actions prior to joining the firm. All changes after the start of the Coverage Period must be reported to the PLF on a firm’s renewal application for the next year.

              (2)           Firms are required to notify the PLF after the start of the Coverage Period if:

                             (a)  The total number of current attorneys in the firm either increases by more than 100 percent or decreases by more than 50 percent from the number of current attorneys at the start of the Coverage Period.

                             (b)  There is a firm merger. A firm merger is defined as the addition of one attorney who practiced as a sole practitioner or the addition of multiple attorneys who practiced together at a different firm (the “merging firm”) immediately before joining the firm with PLF excess coverage (the “current firm”). It is only necessary to report a firm merger to the PLF if the current firm is seeking to add the merging firm as a predecessor firm or specially endorsed predecessor firm to the current firm’s PLF Excess Plan.

                             (c)   There is a firm split. A firm split is defined as the departure of one or more attorneys from a firm with PLF Excess Coverage if one or more of the departing attorneys form a new firm which first seeks PLF Excess Coverage during the same Coverage Period.

                             (d)  An attorney joins or leaves an existing branch office of the firm outside of Oregon.

                             (e)  The firm establishes a new branch office outside of Oregon.

                              (f)   The firm enters into an “of counsel” relationship with another firm.

                              (g)  An attorney continuing to practice law with, or maintaining an affiliation with, a Law Entity other than the Law Entity listed on the Excess Declarations joins or leaves the firm.

                              (h)  A non-Oregon attorney joins, or leaves the firm.

                              (i)    An attorney practicing in areas that present risk of claims (including aiding and abetting) under Oregon Securities Law joins or leaves the firm.

In each case under this subsection (2), the firm’s coverage will again be subject to underwriting, and a prorated adjustment may be made to the firm’s excess assessment.

(I)          Discretionary Continuity Credit

              (1)          Firms that are offered excess coverage may receive a continuity credit for each year of continuous PLF Excess Coverage (2% for one year, up to a maximum credit of 20% for ten years) at the underwriter’s discretion if the firm has no negative claims experience, does not practice in a Higher Risk Practice Area, and meets acceptable practice management criteria. See PLF Policy 7.300(A). No firm will be entitled to receive a continuity credit if the firm is receiving a credit for a recent retroactive date under Policy 7.600(C)(2).

(J)           Extended Reporting Coverage:
   

Extended Reporting Coverage Period	ERC Premium
12 months 24 months 36 months 60 months	100% 160% 200% 250%

               (2)          A firm must exercise its right to purchase ERC and must pay for the ERC coverage within 30 days of expiration, termination or cancellation of its PLF Excess Coverage. The Chief Executive Officer may include wording in the Excess Coverage Plan to indicate that ERC options vary from year to year, and that any particular option may be unavailable in a future year.

(K)          Continuous Coverage: The PLF will not offer a renewing firm continuous coverage from January 1 unless the firm’s renewal application is received by the PLF in substantially completed form by January 10 (or the next business day if January 10 is a weekend or holiday). If a renewal application is received after that date and the firm is approved for underwriting, the coverage period offered to the firm will begin on the day the renewal application was approved for underwriting and the assessment will be prorated accordingly. Renewing firms may qualify for the discretionary continuity credits pursuant to subsection (I) so long as the firm renews its coverage no later than January 31. Renewal after January 31 will result in the automatic loss of any accumulated discretionary continuity credit.

(L)           Higher limits coverage: Firms who meet the additional underwriting criteria and procedures established by the PLF and its reinsurers may be eligible to purchase limits in excess of the $4.7 million excess limits offered by the PLF’s standard excess program. In accordance with reinsurance agreements, firms applying for higher limits coverage may be subject to additional underwriting considerations and may not be eligible for credits available with the standard excess program coverage.

               (1)          The higher limits coverage will be an additional $5 million in excess of the $4.7 million standard excess coverage. Firms seeking coverage above the $4.7 million standard excess coverage will be subject to the standard underwriting formula and rate sheet and also subject to reinsurer approval and rating adjustment.

               (2)          Firms will not be offered higher limits coverage above $4.7 million unless they have maintained excess coverage with limits of at least $4.7 million with the PLF or some other carrier for the prior two years.

(M)        Non-Standard Excess Coverage: Firms who do not meet the underwriting criteria established by the PLF and its reinsurers under PLF Policy 7.300 may be eligible to purchase non-standard excess coverage offered by the PLF and its reinsurers. In accordance with reinsurance agreements, firms applying for non-standard excess coverage may be subject to additional underwriting considerations and may not be eligible for credits available with the standard excess program coverage.