Effective January 1, 2016 in Arizona and March 1, 2016 in New Mexico, CNA has once again added new benefits to the lawyers professional liability policy. (New Mexico it is not that you are second class citizens. We just had to wait for insurance department approval of the changes.)
• The deductible under the death, disability, and non‐practicing Extended Reporting Period (tail) provisions is waived.
• The deductible is reduced 50% (subject to $25K cap) if the Insured has an engagement agreement in the underlying file, including the client’s identity, the scope of the representation, the fee and billing structure, termination agreement with file retention and destruction terms, and countersignature by the client.
• The definition of legal services is expanded to include services performed by an Insured as an author or publisher of legal research papers or legal materials or as a presenter of legal seminars, as long as the compensation per publication or presentation is less than $25,000.
• The definition of legal services is expanded to include services by the Insured as an expert witness related to legal matters.
• The definition of Insured is expanded to include the “spouse or domestic partner of an Insured” named in connection with covered legal services.
• The aggregate reimbursement limit for the “Loss of Earnings” Supplementary Payment is increased from $30K to $50K per policy period.
• The reimbursement limit for the defense of “Disciplinary Proceedings” is increased from $20K to $50K for any one disciplinary proceeding.
• The Supplementary Payments provision is expanded to include reimbursement of up to $25K in the aggregate for expenses relating to a demand pursuant to recovery rights under SCHIP Act of 2007.
• The meaning of “private practice of law” in the non‐practicing Extended Reporting Period (retirement tail) section of the policy is expanded to allow the provision of mediation and arbitration services, in addition to pro-bono services, without jeopardizing the non-practicing Extended Reporting Period.