2. CONTACT

Mr. Jeff Rubin, J.D.
Shand, Morahan & Co., Inc.
Shand Morahan Plaza
Evanston IL 60201
(708)866-2800

3. UNDERWRITING GUIDELINES

All risks will be considered.

4. AVAILABILITY OF COVERAGE

All states on a non-admitted basis; in Illinois on an admitted basis.

5. LIABILITY

LIMITS AND DEDUCTIBLES AVAILABLE. In-house limits of up to $10 million/$10 million are available, with excess coverage a possibility. The minimum deductible is $10,000 per firm/per claim. The minimum premium is $5,000 for one attorney; $7,500 for two; $10,000 for three or more.

INSURING AGREEMENT. The policy promises to pay on behalf of the named insured damages for which the insured becomes legally liable. The claim must be made against the insured during the policy period or the extended reporting period. The policy covers claims for “acts” or “personal injury.” These terms are defined, below.

DEFINITIONS. The following terms are defined:

A. Actone of the items covered by the insuring agreement. An act is the performance of a duty by the insured while rendering legal service or advice. An act can also be an omission of a duty by the insured.

B. Claima demand for damages. It must be received by the insured.

C. Claim expensesall necessary expenses that result from the investigation and defense of a claim. They are included within the limit of liability.

D. Damagesonly the monetary portion of any judgment. Not included as damages are punitive damages; damages that are a multiple of compensatory damages; and judgments “deemed uninsurable by law.”

E. Of Counsela lawyer indicated as such on the application, but only with respect to acts on behalf of the named insured.

F. The Firmthe named insured.

G. Personal injuryany of the following committed by the insured while rendering legal advice or services: false arrest; false imprisonment; malicious prosecution; malicious abuse of process; wrongful detention; wrongful entry or eviction or other invasion of private occupancy; libel; slander; or breach of privacy.

H. Policy period.

I. Extended reporting period.

J. Predecessor firmany legal entity that was engaged in law practice and was acquired by the named insured. It must be designated on the application.

WHO IS INSURED. The following are insureds under this policy:

A. The named insured. Also referred to as the “firm.” Also in this category is any predecessor firm.

B. Current and former partners, officers, directors, or Of Counsel for the named insured or any predecessor firm.

C. The lawyers in other professional corporations that are partners, officers, directors, Of Counsel, or employees of the named insured.

D. Current and former employees of the named insured, while acting for the named insured or any predecessor firm.

E. The legal representatives of the above insureds in the event of the death, incapacity, or bankruptcy of the insured.

WHAT IS INSURED. The policy covers the insured's liability arising out of his or her rendering of legal services or advice. It also covers personal injury committed by the insured while rendering legal services or advice.

PERILS. The perils covered are defined by the exclusions.

EXCLUSIONS. The following exclusions apply to this policy:

A. Intentionally dishonest or fraudulent acts. There is no coverage for anyone who commits such acts. However, the policy still covers anyone who has not been “adjudicated to have committed such an Act.”

B. Claims made by any insured.

C. Claims made by any organization in which the named insured has more than a 5% ownership interest. This exclusion also applies if the named insured is “considering acquiring an ownership interest” in the organization.

D. Claims arising out of the insured's duties as a public official or government employee.

E. Bodily injury, sickness, disease, death, or property damage.

F. Claims arising out of the rendering of investment advice by the insured.

G. Claims based on contracts for division of fees or fee apportionment.

H. Discrimination of any kind.

CONDITIONS. Specific coverage “conditions” are spread throughout the policy. There is also a section of general policy conditions.

A. Defense counselis the choice of the insurer.

B. Cooperation of the insured.

C. No payment or admission of liability by the insured.

D. Consent of the insured is required to settle any claim.

E. Discovery of potential claimsif the insured notifies the insurer of a potential claim, then any subsequent claim made is considered to have been made as of the date of the notification.

F. Extended reporting periodif the insurer cancels or nonrenews the policy, the insured may purchase an extended reporting period, subject to the following conditions:

1. The only acts covered by the extended reporting period must be committed prior to the termination of the policy.

2. The termination must not be due to nonpayment of premium or deductible. If the insurer has quoted a different premium or deductible to the insured, that does not constitute termination of the policy.

3. The insured must notify the insurer of its intention to purchase an extended reporting period, within 10 days of the policy termination.

4. The annual premium and all deductibles must be paid.

5. Any coverage under the extended reporting period terminates when the insured secures new coverage.

6. The extended reporting period does not increase the limits of liability.

G. Territoryworldwide.

H. Limits of liability:

1. Each claim.

2. Policy aggregate.

3. Deductiblemust be paid within 30 days of demand.

4. Multiple insureds, claims, and claimants do not increase the limit of liability.

I. Insured's duties in the event of a claim:

1. Forward every demand, notice, summons, etc. to the insurer.

2. Give written notice of the claim “as soon as practicable” to the insurer.

3. All claims made, suits made, or arbitrations instituted against the insured must be reported to the insurer within 60 days after policy expiration; or within 10 days of the expiration of the extended reporting period.

J. Subrogation and indemnity. If the insurer is successful in subrogation, then any money recovered is applied to these expenses, in order:

1. subrogation expenses of the insurer;

2. payments by the insured in excess of the deductible;

3. payments by any excess insurer;

4. payments by a primary insurer;

5. reimbursement of the insured's deductible.

K. False or fraudulent claims: if any insured individual or entity commits fraud in presenting a claim, the insurer may void the insurance: with respect to such claim; to the individual or entity from the date the claim was presented; or from the date the claim was made. The insurer may also choose to void the policy in its entirety.

6. POLICY CONDITIONS

The following conditions apply:

A. Applicationthe insured agrees that the statements made in the application are material to the issuance of the policy.

B. Firm changesthe following changes in the named insured firm must be reported to the insurer within 60 days:

1. a change in the total number of lawyers of 20% or more;

2. involvement in a new practice specialty that will produce 5% or more of the insured's gross billable dollars.

C. Changes.

D. Non-payment of deductiblethe deductible must be paid within 30 days. If not, the insurer may institute binding arbitration against the insured.

E. Assignment.

F. Integration of documentthe policy provisions are intended to be read together as “one integrated document.”

G. Cancellation or nonrenewalthe insurer may cancel at any time for nonpayment of premium or deductible, with a 10-day written notice; for any other reason, with a 60-day written notice. Non-renewal requires a 60-day written notice.