HOD8_Results

Whereas, The Oregon State Bar Professional Liability Fund (PLF) currently holds a mandated statewide monopoly on primary malpractice insurance for all bar members; and

Whereas, Oregon is the only state in the entire country that requires attorneys to carry malpractice insurance as a condition of practicing law and it is also the only state in the country with a mandated monopoly insurance carrier; and

Whereas, This lack of competition allows a single entity to control prices and the terms of coverage, limiting options for Oregon attorneys; and

Whereas, PLF premiums are significantly higher, and the policy provisions are less comprehensive compared to what is available through private insurance markets; and

Whereas, Many attorneys, particularly solo practitioners and small law firms, are financially burdened by the high cost of PLF coverage, which may also limit their ability to grow their practices, serve their communities, and provide legal services to marginalized and underserved populations; and

Whereas, Allowing bar members to obtain malpractice insurance from private insurers—so long as the coverage is equal to or exceeds that provided by the PLF—will promote competition, potentially lowering premiums and improving the terms of coverage; therefore, be it

Resolved, that the Oregon State Bar shall establish a committee to explore and propose the feasibility of allowing bar members to obtain primary malpractice insurance from private insurers, provided that the coverage meets or exceeds the protections currently offered by the Oregon State Bar Professional Liability Fund (PLF).

 

 

 

Financial Impact

This committee should be staffed with volunteers so as to minimize additional costs to the Bar. The Board of Governors anticipates there will be a budgetary impact based on additional staff time needed to support the volunteer workgroup.

 

Submitted by:
Mario Musil, OSB# 206766, HOD Region 7