The Gazette 1995

GAZETTE

DECEMBER 1995

The Solicitors Acts, 1954 to 1994 (Professional Indemnity Insurance) Regulations, 1995 (S.I. 312 of 1995)

Pool is involved) the minimum level of cover may be the lesser form of cover of £350,000 "in the aggregate"; (2) These Regulations are only concerned with what the minimum level of Professional Indemnity cover for each solicitor should be; and whatever Professional Indemnity cover higher than the minimum an individual solicitor or firmof solicitors choose(s) to have, and from what insurer, is entirely a matter for that solicitor or firm.] 5. The minimum level of cover must be obtained from a "qualified insurer", meaning an insurer who enters into a form of agreement with the Society as set out in the Schedule to the Regulations and who agrees to have "approved indemnity terms" (i.e., policy conditions) as set out in the Appendix to the Regulations. 6. If a solicitor with a current practising certificate changes his/her status during the practice year (i.e. moves minimum level of cover continues for the remainder of that practice year. 7. A solicitor who is refused the minimum level of cover by at least three qualified insurers (to include the Solicitors Mutual Defence Fund), or who is in effect so refused by the quotation to him of very onerous terms or premia ("constructive declinature"), may apply to the PII Committee for admission to the "Assigned Risks Pool", which comprises all the qualified insurers for the time being. | Note: Subjcct lo certain requirements relating to 1 in- payment of a premium deposit of 200% of the preceding year's minimum level of cover premium (actual or estimated by the Assigned Risks Pool Manager and to a Risk Management Audit of the practice, the Assigned Risks Pool may provide the minimum level of cover to the solicitor concerned. There is provision for an appeal to the High Court by a solicitor who is refused cover by the from one solicitor's practice to another) he/she must notify the Society and verify that his/her

These Regulations implement Section 26 of the Solicitors (Amendment) Act, 1994

Assigned Risks Pool.]

and provide for the following: 1. The coming into effect of the

8. The maximum period a solicitor can remain in the Assigned Risks Pool is two practice years. [Note: It is unlikely that there will be many situations where a solicitor, even with an indifferent Professional Indemnity claims record, will be unable to get Professional Indemnity cover from one of the qualified insurers. However, the detailed provisions relating to the operation of the Assigned Risks Pool reflect: (i) the need to ensure that a solicitor is not unreasonably prevented from practising by reason of not being able to get the minimum level of cover necessary to obtain a practising certificate; and, (ii) the concerns of the qualified insurers who will in the final analysis be required to provide the minimum level of cover to a solicitor who may be a very bad insurance risk.] 9. The Society will be required to maintain an "insurance record", available to the public, containing the name of the qualified insurer providing the minimum level of cover to each solicitor who is issued with a practising certificate. • FOUR COURTS CONSULTATION ROOMS Please note that the charges for the above will be as follows, with effect from 1 January, 1996:- The telephone system, telephone booths and ground floor rooms have all been upgraded in the last 18 months. This increase will enable the completion of refurbishment work to the rooms. • 2 hou r s - £ 30 • All D a y - £ 1 00

Regulations on 1 December 1995, subject to transitional provisions for the practice year 1996, (from now on coinciding with the calendar year) taking account of the reality that most solicitors currently hold twelve month Professional Indemnity cover (of at least £250,000) up to dates expiring during 1996. 2. The establishment, membership and functions of the Professional Indemnity Insurance (PII) Committee; its membership comprising two-thirds Council members together with representatives of the "qualified insurers" either as full members or as "participating observers". 3. Apart from employed solicitors providing legal services only to and for their non-solicitor employers (i.e. full-time in-house solicitors), any solicitor applying for a practising certificate from 1 January 1997 will have to furnish to the Society written confirmation from a "qualified insurer" of there being in force relating to him/her the "minimum level of cover" for the duration of the practice year (i.e., the calendar year) in respect of which such practising certificate so applied for relates. 4. As and from a solicitor's next insurance renewal date during 1996, the "minimum level of cover" is to be £350,000 for each and every claim (including claimants' legal costs) unlimited in the aggregate ("in respect ot anv act or omission of the insured which gives rise to a claim or which the insured considers may give rise to a claim and is duly notified to the qualified insurer concerned during the practice year in question"), together with the insured's own legal costs; subject to such increases as may be specified by the Council from time to time. [Note: (1) Where the PII Committee specify as appropriate (usually where the Assigned Risks

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