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In an effort to save you time, we have included
this FAQs (Frequently Asked Questions) page on our site. If you do not
find an answer to your question here, please feel free to contact us.
OAMIC
Facts
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Claims-Made |
Extended Reporting Endorsement |
Coverage Issues
OAMIC Facts
Q: Who owns Oklahoma
Attorneys Mutual Insurance Company (OAMIC)?
A: OAMIC is
owned by its “members”, who are the same as its insured’s/policyholders. The
company’s Board of Directors is comprised of 15 lawyers from the State of
Oklahoma.
Q:
Is OAMIC an assessable or non-assessable mutual?
A: OAMIC is a
non-assessable mutual and as such, premiums are the only costs charged to the
policyholders.
Q:
Does OAMIC pay dividends?
A: OAMIC has paid
12 consecutive dividends to policyholders averaging 25% of the earned premiums
on limits up to 1 Mil/1 Mil. Dividends are declared by the Board based upon the
financial results for the year and therefore can not be guaranteed. The
consistent track record speaks well for the possibilities, with dividends to
policyholders totaling $16.6 Million.
Q:
Who How long has OAMIC been in business?
A: Members of the
OBA started the company in 1979 and the first policy was issued in 1980. The
lack of availability of coverage along with a desire to have a company dedicated
to Oklahoma lawyers led to the startup of the company.
Claims-Made Form
Q:
What is the claims-made policy form?
A: A claims-made
policy is more aptly named a “claims-made and reported”
form. The policy in effect at the time the claim is first reported to the
company is the policy that will respond, not the policy that was in effect at
the time of the alleged act or emission.
Q:
What are the two “triggers” of coverage that are often referred to in a
claim-made policy form?
A: The first
trigger is that coverage (policy or an extended reporting
endorsement) must be in effect at the time a claim is first made/reported. This
makes continuity of coverage critical. If no policy is in force, no coverage
applies. Second trigger of coverage is the prior acts (retroactive) date. The
claim must be alleged to have occurred between the prior acts date and the date
it is first reported. Be very careful changing policies or carriers, to make
sure prior acts coverage is not changed (moved forward) or deleted.
Q:
What is prior acts coverage?
A: Prior acts coverage is coverage for acts or omissions alleged
to have occurred prior to the current policy’s effective date. This period of
time is usually defined by endorsement. If you change policies, do not assume
prior acts coverage is automatically extended.
Q:
Does my previous firm have coverage for the legal services I provided during my
employment?
A: Normally yes, under the "persons insured" section of the
policy. However, your prior acts coverage is solely dependent on your former
employer.
You could be exposed to risk if they:
- Did
not continue to carry insurance.
- Did
not continue to stay in business.
-
Merged with a firm that did not pick up the firm's former partners/associate
coverage.
- Did
not split in such a manner that there is a successor firm that will be able to
pick up the coverage.
Q:
Do I need to report an incident that may give rise to a claim?
A: Yes. Protect yourself and report incidents and claims as soon as you
become aware of them. Coverage is locked when the claim, or possible claim is
reported.
Extended
Reporting Endorsement
Q:
What is an Extended Reporting Endorsement (ERE)?
A: The ERE, often called tail-coverage, is an endorsement that extends
the opportunity to make or report a claim after coverage is terminated. In the
event of retirement or taking a position on the Bench, OAMIC offers an unlimited
(forever) ERE. Otherwise, the ERE is for a year or 3 years at the company’s
discretion.
Q:
Does the OAMIC policy provide free Non-Practicing Extended Reporting Coverage?
A: Yes, but only for 30 days. The option to purchase a lengthier ERE
must be exercised within 30 days after coverage has terminated.
Q:
What if I plan to retire?
A: You should review your policy for an option to purchase an Extended
Reporting Endorsement (ERE). The time frame allowed to request this coverage is
30 days after your coverage terminates, and there is a premium charge, which
varies depending on the limit of liability in effect.
Coverage Issues
Q:
Do all policies provide coverage as an arbitrator or mediator?
A: Not necessarily. The OAMIC policy provides this coverage and
considers this work to be included within “legal services provided to others”.
Q:
Is coverage available for someone that is working as an attorney on a part-time
basis?
A: OAMIC will afford coverage to those in part-time practice. However,
little or no differentiation is made for the premium charge, as it is unproven
as to whether part-time practitioners represent less exposure.
Q:
What limits should I carry for my practice?
A: There is no magical formula. The firm should assess their practice on
a regular basis to ensure sufficient limits. Consideration should be given to
the area(s) of practice and the approximate case values that could give rise to
a claim, creating the greatest “possible maximum loss” (PML).
OAMIC
has limits available from $100,000 to $5,000,000, and in some instances up to
$10,000,000.
Q: Does the company have expertise in writing Lawyers' Professional Liability
Insurance?
A: OAMIC has been writing Lawyers' Professional Liability coverage
continuously since November 1980. Our Claim Department is staffed with
experienced personnel who specialize in handling lawyers’ professional liability
claims.
Q:
Does the policy include legal services provided only on behalf of the firm?
A: No, OAMIC does not limit coverage to services provided solely on
behalf of the firm. Coverage extends to “legal services provided to others”
without limitation with respect to whether it was provided on behalf of the
firm, your own PC, you as an individual etc. You should check with your firm as
to whether they request any limitation on how, for whom, and on whose behalf you
work.
Q:
Does OAMIC’s coverage extend to Pro Bono legal services?
A: Yes, the OAMIC policy does apply to Pro Bono work.
Q:
Does coverage extend to situations where an attorney acts as a trustee?
A: The fiduciary coverage section of the policy extends coverage when
acting as a trustee, as well as any court appointed fiduciary role. Exclusion
g) does limit coverage when serving as a trustee of certain types of entities,
i.e. charitable organizations, profit sharing plans, etc.
Q:
Does coverage extend to an attorney acting as a title agent?
A: OAMIC’s policy does not automatically extend to title agent’s E&O.
However, title agent E&O coverage can be added by endorsement for a $100 flat
charge for the policy year.
Q: Deductible applies to indemnity and defense?
A: Yes, your deductible applies to the first dollars expended. In this
manner, firms with greater frequency of claims bear more of their share of the
costs.
Q: Is coverage excluded for claims against an Insured by an Insured’s spouse?
A: Yes, an exclusion would apply.
Q:
Does policy coverage contain an “Innocent Partner” provision?
A: Yes, OAMIC’s policy provides protection for the “Innocent Partner”,
subject to the “conditions”, Section III of the policy.
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