An Act Requiring Attorneys To Maintain Professional Liability Insurance.
Impact
If enacted, HB 5578 would significantly influence the legal landscape of the state by establishing a standard for professional liability among attorneys. This legislative move is anticipated to not only promote accountability within the legal profession but also provide greater assurance to clients that their legal representatives are equipped to handle potential claims of misconduct or errors in judgment. By ensuring attorneys are financially backed against potential liabilities, the bill aims to cultivate a more trustworthy legal environment.
Summary
House Bill 5578 seeks to mandate that all attorneys actively practicing law in the state must maintain professional liability insurance. This requirement is set to have indemnification limits of at least one million dollars for each occurrence of malpractice, with a collective cap of not less than three million dollars. The bill aims to enhance consumer protection by ensuring that clients have recourse in the event of attorney negligence or malpractice.
Contention
Despite its intended protections, the bill has raised some concerns among members of the legal community. Critics argue that requiring such insurance could impose an additional financial burden on attorneys, particularly new or solo practitioners who may struggle to afford premiums. Additionally, there are discussions regarding the implications this may have on access to legal services, as increased costs could lead some attorneys to raise their fees, potentially making legal representation less accessible to the public.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.