Amended supreme court rule requires uninsured lawyers to do self-assessment

Beginning next year, lawyers who don't carry malpractice insurance will have to complete a four-hour assessment of their ethical knowledge and management practices.

Each year, the ARDC requires Illinois attorneys to report whether they or their firms carry malpractice insurance. That information is made public via the ARDC's website, although a prospective client may not know the website exists, let alone that it provides such information. On January 25, 2017, the Illinois Supreme Court amended Rule 756(e) by implementing "proactive management based regulation" (PMBR). The new rule will require attorneys who do not carry malpractice insurance to complete a four-hour interactive, online assessment of the operations of their firm. The assessment is based on both ethical rules and best business practices. It will be conducted every two years, beginning in 2018. (For more about PMBR, see the June 2016 Illinois Bar Journal cover story.)

According to James Grogan, the ARDC's Deputy Administrator and Chief Counsel, 41 percent of solo practitioners in Illinois do not carry malpractice insurance. There are roughly 13,500 solo attorneys in the state, which means some 5,500 practice uninsured. What's more, nine percent of small firms do not maintain malpractice insurance policies.

Regulators are concerned about young attorneys with large debt loads and little opportunity to find work, he says. Not only are they less likely to carry insurance, but they are also more likely to take on work outside their comfort range due to financial pressures. Find out more in the March IBJ.

Posted on February 28, 2017 by Mark S. Mathewson
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