March 18, 2014
Bar Endorsement of ALPS Reaffirmed
Bickmore, an insurance and risk management consulting firm, has completed its review of the VSB’s endorsement relationship with ALPS. In light of the Bickmore report’s recommendations, the Special Committee on Lawyer Malpractice Insurance is not recommending any change in the bar’s endorsement of ALPS.
Bickmore was asked to:
• Review the current market conditions for lawyers' professional liability insurance;
• Recommend whether the Virginia State Bar should continue to endorse a malpractice carrier;
• Address marketplace changes and improvements since the inception of the program and the endorsement of ALPS in 2000;
• Research the range and viability of current alternatives to the endorsement program; and
• Consider the impact that discontinuation of the endorsement program would have on the Virginia malpractice insurance market and Virginia lawyers.
ALPS is moving forward with its plan to become an admitted carrier in all states in which it does business. The Special Committee on Lawyer Insurance and the Executive Committee had earlier authorized a letter be sent to the State Corporation Committee urging that the ALPS application to become an admitted carrier be granted, deeming it to be in the interests of Virginia's lawyers.
The Bickmore report concluded:
In our judgment, the relationship between ALPS and the Bar is sound. It is producing benefits that either ALPS or the Bar, working on their own, would not be able to realize. There is no insurance availability issue that would indicate the need for an endorsed program. However, because the current endorsed program exists and is working well, we conclude it should be continued under its current terms.Updated: Mar 21, 2014