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Law Alert!

Disclosure of Lack of Professional Liability Insurance Required

The California Supreme Court approved new Rule of Professional Conduct 3-410, operative January 1, 2010, which requires that attorneys disclose in writing the lack of professional liability insurance to their clients at the time of their engagement (or reengagement) whenever it appears that the matter will require more than 4 hours of attorney time. Rules of Prof Cond 3-410(A).

If an attorney's professional liability coverage is terminated while representing a client, then the attorney must notify the client of this change in writing within 30 days of the termination of coverage. Rules of Prof Cond 3-410(B). Government and in-house counsel are exempted from this requirement (Rules of Prof Cond 3-410(C)), as well as attorneys who render legal services in an emergency to avoid prejudice to a client's rights (Rules of Prof Cond 3-410(D)).

For guidance from CEB, including suggested disclosure language, see Fee Agreement Forms Manual §1.51A (2nd ed Cal CEB 2007).

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