S.I. No. 122/2005 - The Solicitors Acts 1954 To 2002 (Professional Indemnity Insurance) (Amendment) Regulations 2005

STATUTORY INSTRUMENTS.

S.I. No. 122 of 2005 .

THE SOLICITORS ACTS 1954 TO 2002 (PROFESSIONAL INDEMNITY INSURANCE) (AMENDMENT) REGULATIONS 2005.

S.I. No. 122 of 2005 .

THE SOLICITORS ACTS 1954 TO 2002 (PROFESSIONAL INDEMNITY INSURANCE) (AMENDMENT) REGULATIONS 2005.

The Law Society of Ireland, in exercise of the powers conferred on them by section 26 of the Solicitors (Amendment Act 1994 , HEREBY MAKE the following Regulations:

Citation and commencement

1. (a)  These Regulations may be cited as The Solicitors Acts 1954 to 2002 (Professional Indemnity Insurance) (Amendment) Regulations 2005.

(b)  These Regulations and The Solicitors Act 1954 to 1994 (Professional Indemnity Insurance) Regulations 1995 ( S.I. No. 312 of 1995 ), the Professional Indemnity Insurance (Amendment Regulations 1998 ( S.I. No. 209 of 1998 ), The Solicitors Acts 1954 to 1994 (Professional Indemnity Insurance) (Amendment) Regulations 1999 ( S.I. No. 362 of 1999 ) and The Solicitors Acts 1954 to 2002 (Professional Indemnity Insurance (Amendment) Regulations 2004 ( S.I. No. 115 of 2004 ) shall be construed together as one and may be cited as The Solicitors Acts 1954 to 2002 (Professional Indemnity Insurance) Regulations 1995 to 2005.

(c)  In these Regulations—

“1995 Regulations” means The Solicitors Acts 1954 to 1994 (Professional Indemnity Insurance Regulations 1995 ( S.I. No. 312 of 1995 );

“1998 Regulations” means the Professional Indemnity Insurance (Amendment) Regulations 1998 ( S.I. No. 209 of 1998 );

“2001 Regulations” means The Solicitors Acts 1954 to 1994 (Euro Changeover) Regulations 2001 ( S.I. No. 504 of 2001 );

“2004 Regulations” means The Solicitors Acts 1954 to 2002 (Professional Indemnity Insurance (Amendment) Regulations 2004 ( S.I. No. 115 of 2004 ).

(d)  Other words and phrases in these Regulations shall have the meanings assigned to them in the Solicitors Acts 1954 to 2002 and in The Solicitors Acts 1954 to 2002 (Professional Indemnity Insurance Regulations 1995 to 2005.

(e)  These Regulations shall come into operation on the 1st day of November 2005.

Definition of “solicitor”

2.  Regulation 2(a) of the 1995 Regulations is hereby amended by the substitution of the following for the definition therein of “solicitor”:

“ ‘solicitor’ means a person who has been admitted as a solicitor and whose name is on the roll or whose name was previously on the roll; and a reference to a solicitor includes, unless the context otherwise requires, a reference to—

(i)   a solicitor who is engaged in practice as a solicitor whether as a sole practitioner or as a partner in a practice or as an employee of a practice or of any other person or body, and who is prohibited by section 56 of the Act of 1994 from so engaging in practice unless a practising certificate in respect of him is in force;

(ii)  a solicitor who is employed full-time within the State to provide conveyancing services only to and for his employer (provided that such employer is not a solicitor);

(iii)  a solicitor who has for whatever reason ceased or will in the immediate future cease, to engage in practice as a solicitor;

(iv)  a former solicitor or a deceased solicitor.”

Minimum level of cover

3. Regulation 6 of the 1995 Regulations together with the Schedule thereto, as amended by Regulation 3 of the 1998 Regulations and Regulations 2 and 3(a) of the 2001 Regulations are hereby amended by the substitution of “€2,500,000” for “€1,300,000” in sub-clause (a)(i) and (a)(iii) of the said Regulation 6 and in Form 1, paragraph (b)(viii)(A) and (B) set out in the said Schedule.

Eligibility for admission to Assigned Risks Pool

4. Regulation 8 of the 1995 Regulations, as amended by Regulation 5 of the 2004 Regulations, is hereby amended by the substitution of the following for clause (a) thereof:

“(a)  Where a solicitor, who has not previously been in the Assigned Risks Pool either at all or within the preceding six years, shows to the satisfaction of the PII Committee that—

(i) he has been refused the minimum level of cover, or in respect of whom there has been a constructive declinature, by three or more qualified insurers (one of which to be the mutual fund known as the “Solicitors Mutual Defence Fund”) and

(ii)  (A) he has applied to the Society for a practising certificate in respect of the practice year in question and that such practising certificate would be issued to him subject only to his furnishing (or causing to be furnished) to the Society written evidence of there being in force relating to him the minimum level of cover for the duration of the practice year in question, or

(B) he has for whatever reason ceased or will in the immediate future cease, to engage in practice as a solicitor,

the solicitor shall be eligible for admission to the Assigned Risks Pool.”

Amendments to Regulation 10 of 1995 Regulations and Schedule thereto

5. (a)  Regulation 10 of the 1995 Regulations, as amended by Regulation 8 of the 2004 Regulations, is hereby amended by the substitution of the following for clause (d) thereof:

“(d)  Where the minimum level of cover or interim cover or run-off cover is provided to a solicitor through the Assigned Risks Pool, the proportion which each qualified insurer for the time being shall contribute to the provision thereof and shall share the premium therefor shall be the proportion to which the premium income (less any statutory premium tax or levy) of each qualified insurer in respect of the provision by that qualified insurer to solicitors of the minimum level of cover bears to the total premium income (less any statutory premium tax or levy) of all qualified insurers in respect of the provision by all of them to solicitors of the minimum level of cover in the relevant practice year; provided however that the premium income of any qualified insurer in any practice year, if actually less than one percent (1%) of the total premium income in that practice year, shall be deemed to be one percent (1%).

(b)  Form 1 of the Schedule to the 1995 Regulation is hereby amended by the substitution of the following for clause 5 thereof:

“(5) That the proportion of the sharing by the Qualified Insurer of the premium therefor and the contribution of the Qualified Insurer to the provision of the minimum level of cover or run-off cover through the Assigned Risks Pool pursuant to the Indemnity Regulations shall be the proportion to which the premium income (less any statutory premium tax or levy) of the Qualified Insurer in respect of the provision by the Qualified Insurer to solicitors of the minimum level of cover bears to the total premium income (less any statutory premium tax or levy) of all qualified insurers in respect of the provision by all of them to solicitors of the minimum level of cover in the relevant practice year; provided however that the premium income of the Qualified Insurer in the relevant practice year, if actually less than one percent (1%) of the total premium income in that practice year, shall be deemed to be one percent (1%).

Dated this 4th day of March 2005.

Signed on behalf of the Law Society of Ireland pursuant to section 79 of the Solicitors Act 1954 :

EXPLANATORY NOTE.

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

The principal purpose of the instrument is to amend The Solicitors Acts 1954 to 2002 (Professional Indemnity Insurance) Regulations 1995 to 2004:

• to provide for an extended definition of “solicitor” with an equivalent amendment to the provisions relating to eligibility for admission to the Assigned Risks Pool, in order to make clear that a solicitor ceasing to engage in practice as a solicitor, whether or not still on the Roll of Solicitors, is eligible to apply to the Assigned Risk Pool for run-off cover;

• to provide for an increase in the minimum level of cover from €1,300,000 to €2,500,000;

• to provide for a change in the method of calculating the extent to which each qualified insurer contributes to the cover provided to solicitors through the Assigned Risks Pool and shares the premium therefor.