Board of Directors Declare $2,750,000 Policyholder Distribution

TEXAS LAWYERS' INSURANCE EXCHANGE

Board of Directors Declare $2,750,000 Policyholder Distribution

By John B. Randolph, President, TLIE

On December 8, 2000 the TLIE Board of Directors authorized a $2,750,000 policyholder distribution for members who were policyholders as of 5:00 P.M., November 30, 2000. The actual payments will be made on or before December 15, 2000.

This decision by the Board marks the fourth consecutive year that TLIE has been able to return premiums to policyholders. Those distributions now total $11,000,000. No other insurance company writing attorney's professional liability insurance in Texas can make this same claim. The commercial carriers keep their profits - we return them to the policyholder.

Often times I hear TLIE referred to as the carrier for small firms. In reality, TLIE was created to serve all segments of the Bar. Our membership consists of over 1250 Texas-based law firms, ranging in size from sole practitioners to firms of 300 attorneys. Since TLIE is owned and managed by Texas attorneys, only Texas-based law firms are eligible for coverage. Out-of-state firms doing business in Texas are not eligible for membership in the Association.

TLIE is a unique organization because it was one of the first entities created to respond specifically to the professional liability needs of attorneys. Following the lead of Texas and several other Bar Associations there now exists a total of 16 companies located throughout the United States that were created to provide attorneys professional liability insurance.

Among the many reasons that TLIE was created over 20 years ago was the thought that we would ensure availability and bring stability to the marketplace. Those factors continue to be as important today as they were in 1979. During this past year we have witnessed the withdrawal from the Texas market of a number of carriers who, on a long-term basis, did not have the best interests of their Texas policyholders in mind. We believe that our policyholders deserve better treatment. Our goal is to serve all the attorneys of Texas, including large and small firms, during both the good times and the bad.