TEXAS LAWYERS' INSURANCE EXCHANGE |
The Effects of the
Soldiers & Sailors Relief Act
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TLIE we've had four insureds that we know of who were called to active military
duty since 9/11. The Soldiers and Sailors Relief Act, 50 USC 592, provides
benefits for such insureds in connection with their professional liability
insurance coverage. To do our part to support the troops, we thought it would be a good idea to outline the benefits available for attorneys called to active duty, particularly in case there are other TLIE insureds who could take advantage of these benefits. Other professionals may be eligible for similar treatment. Other sections of the Soldiers and Sailors Relief Act provide a number of important protections to all other military personnel regarding other forms of insurance, lawsuits, loans and mortgages. In a memo issued on March 3, 1999 by Secretary of Defense William S. Cohen, legal services were declared professional services under 50 USC 592(a)(2)(A). The effect of the declaration was to allow attorneys with legal malpractice insurance coverage to suspend their coverage while on active military duty. In order to suspend coverage, the attorney must make a written request for the suspension. 50 USC 592(b)(1). The insurance company may not require the attorney to pay premium during the period of suspension. 50 USC 592(b)(2)(A). If premium has already been paid, the attorney may elect either to receive a refund of premiums paid in advance or to apply the excess premium to amounts due when coverage is reinstated. 50 USC (b)(2)(B). The insurance company is not liable for claims based on professional conduct occurring while the attorney is on active duty. The insurer covers claims based on failure to provide for clients in advance of leaving for active duty, however. Please see 50 USC 592(b)(3). Reinstatement of the policy must be requested within 30 days after the date on which the attorney is released from active duty. If any premium is due, the insurer must notify the attorney of any amount due, and that must be paid within 30 days. The premium for the reinstated policy can only be increased "to the extent of any general increase in premium amounts charged by that carrier for the same professional liability coverage for persons similarly covered by such insurance during the period of suspension." 50 USC 592(d). If you or someone in your TLIE insured law firm is called to active duty, let us know. |
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