Dear Member:
On September 18, 2009, TLIE will hold its 30th Annual Policyholders Meeting and it will also mark a milestone in the Association’s history. It will be our first Annual Meeting that will not be chaired by Mr. James R. (Jim) Lovell. Jim’s recent decision to retire from active membership on the Board of Directors leaves some very large shoes to fill and I am humbled by the challenge to continue the work that Jim began over 30 years ago.
It was Jim who originally proposed to the State Bar the idea of organizing an attorney owned and managed professional liability insurance carrier whose sole purpose was to be a consistent source of coverage for Texas attorneys in both good times and bad. Under Jim’s careful guidance the Association weathered several recessions and a near collapse of the Texas economy during the mid 1980’s. His service to the lawyers of Texas should not be forgotten and we are all indebted to Jim for a job well done.
For the future it will remain the responsibility of the members of the Board to continue to carry out the Exchange’s original mission of insuring the availability of professional liability insurance for current and future generations of Texas attorneys. The challenges that we, as your insurer, and you, as a practicing attorney, face in today’s environment are significant. The impact of the global financial crisis has touched us all. The demand for legal services has declined, particularly for transactional oriented practices, and that has put additional strains on firm finances. The insurance industry has also suffered during this period as a result of incorrect underwriting decisions and poor investment results. However, Texas has weathered this storm far better than most other areas of the country and that should mean that when recovery does begin that Texas will fare better, and more quickly.
Historically, claims for legal malpractice have tracked the economy. During times of economic growth and prosperity, claims against attorneys have declined. Conversely, claims against attorneys increased during periods of economic weakness. This observation has been validated numerous times during our 30 year history. However, I am pleased to report that this time might prove to be an exception. Thus far, we have not noted any increase in claims activity that we anticipated several years ago, but we know that it may be too early to conclude that we have escaped this downturn unscathed.
The importance of professional liability insurance is clearly demonstrated by several significant numbers. During the period May 1, 1979 through June 30, 2009, TLIE has received notices of 6,999 claims and paid a total of $520,655,146 in indemnity and defense costs. Claims still pending, based on our evaluation, will result in an additional $12,921,908 in costs.
Traditionally we have closed the Chairman’s Message with an expression of gratitude for your loyalty and support which I fully endorse. Thank you for your faith in us and we look forward to continuing our service to you and to the attorneys of Texas.
Thomas L. Hanna
Chairman of the Board
