Issue Number 1, 2006

The news for a lot of lawyers seeking professional liability insurance has not been good for a couple of years. Not only are rates higher, but coverage has been restricted in some instances, and a few legal malpractice insurers are now insolvent. In this climate, more attorneys are reconsidering TLIE for their legal malpractice insurance needs. Here's why:

STRENGTH

TLIE is rated "A Excellent" by A.M. Best. A number of other insurers have had their ratings lowered significantly over the past several years. Three legal malpractice insurers with Texas insureds have become insolvent since 1999. Several insurers have simply abandoned the Texas market in the last two years, apparently due to poor operating results.

COMMITMENT TO INSUREDS

TLIE is owned by its member insureds, and governed by a board of directors chosen by the members. When financially justified by operating results, TLIE has returned premium to its members.

Over the last 6 years, TLIE has returned $14 million to its insureds. Most other insurance companies do not return premiums when they have charged more than justified by actual results of claim activity.

FAST SERVICE

TLIE can provide you with new or renewal quotes rapidly. Often, we can give you an estimate of premium based on a few questions over the phone. Once we receive an application, it usually takes only a few days to get you a final quote, not weeks or months.

Over the past year, we have seen a number of agents and insurers provide quotes at the last minute, making it almost impossible to seek other insurance when premiums increase dramatically.

PRICE STABILITY

Almost every legal malpractice insurer has raised rates in the last two years. TLIE has been forced by reinsurance costs beyond its control to raise rates modestly. Other insurers, however, have often raised prices more dramatically. In some instances, we have seen rates raised more than 300%.

AREAS OF PRACTICE

TLIE does not automatically exclude any area of practice from coverage. We do restrict limits on certain types of securities and patent practice, but we can still provide coverage in most cases. Many other carriers have begun to refuse to insure attorneys with intellectual property and plaintiff and bodily injury practices. At least one carrier now has an endorsement excluding all intellectual property and mass tort related claims.

SUPERIOR CLAIMS SERVICE

TLIE is located in Texas and knows Texas attorneys. All of our internal claim counsel are attorneys, and we hire Texas counsel experienced in legal malpractice issues to help resolve claims. With some other carriers, your contact with the insurer is not an attorney, and will not know which Texas attorneys have had success defending legal malpractice claims.

To learn more about becoming a TLIE member, call Sam Risinger or Jean Sholes at 800-252-9332, or email us at info@tlie.org.