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Proposed | changes to the Clients’ Protection Fund Rules regarding claim limits on payments from the fund (VSB Council re-referred the proposals to the CPF Board)

VSB Council re-referred the proposals to the CPF Board at its October 4, 2013, meeting.


The Clients’ Protection Fund Board will meet September 13, 2013, to consider proposals to increase the per attorney limit from 10 percent to 15 percent of the net worth of the fund and increase the per claim limit from $50,000 to $100,000.

The board also will consider recommending that  the Virginia State Bar seek legislation authorizing the Supreme Court to continue the current $25 CPF assessment beyond  June 30, 2015.

During the 2011-2012 fiscal year, the Clients’ Protection Fund Board voted to conduct an actuarial study. A draft report was received on July 8, 2013.  

The balance in the fund as of June 30, 2013, was $6.4 million. 

 A previous actuarial study of the fund was completed in February 2005, which concluded that the fund should have a balance of $9 million in order to pay claims from interest earned. The findings from that study were used to obtain authority for the $25 assessment currently paid by all active attorneys licensed in Virginia.  Legislation authorizing the $25 CPF assessment (Code of Virginia section 54.1-3913.1), effective July 1, 2007, is to sunset on June 30, 2015. 

The current per claim limit of $50,000 has been in place since July 1, 2000.

The current limit per attorney of 10 percent of the net worth of the fund has been in place since October 1986.

Details:           

view proposed rule changes (PDF file)

 

originally posted: July 30, 2013

Updated: August 18, 2014