III. DEFINITIONS
U. “PROFESSIONAL SERVICES” MEANS services rendered to others in the INSURED’S capacity as a lawyer, either for a fee or eleemosynary. The following services rendered by an INSURED lawyer will also be deemed to constitute PROFESSIONAL SERVICES:
a. as an arbitrator, mediator, or other fact finding neutral;
b. as a member, director or officer of any bar association, its governing board or any of its committees;
c. as a member of a formal accreditation, ethics, peer review, licensing board, standards review or similar professional board or committee relating to the practice of law;
d. as an Author, Publisher, or Presenter of legal research papers or legal materials, but only where direct compensation per publication or presentation is $10,000.00 or less;
e. as an expert witness, if the INSURED was retained to offer expert opinion on issues related to the law, legal practice or procedures of the legal profession; or
f. as an administrator, conservator, executor, guardian, trustee, escrow agent, receiver or other court-appointed fiduciary.
When an INSURED, either a lawyer or a non-lawyer, acts as a notary public or title agent, the INSURED’S acts in such capacity shall be deemed to be the rendition of PROFESSIONAL SERVICES.
IV. EXCLUSIONS
This POLICY shall not apply to any CLAIM based upon, arising out of, attributable to, or directly or indirectly resulting from:
I. Any INSURED’S activities as a former, existing or prospective officer, director, partner, manager, employee or other fiduciary of any entity other than the NAMED INSURED or additional INSURED, including any such activities by any INSURED deemed or alleged to be PROFESSIONAL SERVICES on behalf of such entity.
J. any conversion, misappropriation or improper commingling of client, trust or other funds or property regardless of the cause of action or legal theory asserted in regard to such conversion, misappropriation or improper commingling.
K. any PROFESSIONAL SERVICES rendered or that should have been rendered to or on behalf of any entity other than the NAMED INSURED, which, at any time, was (1) ten percent (10%) or more owned by any INSURED or combination of INSUREDS and/or any spouse(s) or domestic partner(s) of any INSURED; or (2) directly or indirectly, held, controlled, managed or operated by any INSURED or any spouse(s) or domestic partner(s) of any INSURED.
L. any violation or breach by any INSURED of the responsibilities, obligations or duties imposed by the Employee Retirement Income Security Act, the Fair Labor Standards Act, the National Labor Relations Act, the Worker Adjustment and Retraining Notification Act, the Consolidated Omnibus Budget Reconciliation Act, the Occupational Safety and Health Act, the amendments thereto, the rules and regulations promulgated thereunder, or any similar provision of any federal, state or local statute, regulation or ordinance or common law. This exclusion shall not apply if any INSURED is liable solely by reason of legal services rendered to clients.
M. any conduct by any INSURED committed within the scope of or while acting in a capacity as a public official or an employee of a municipality or governmental body, subdivision, agency, department or unit unless the INSURED’S conduct is deemed to be such solely because the INSURED has rendered PROFESSIONAL SERVICES to such governmental body and remuneration for such PROFESSIONAL SERVICES inures to the benefit of the NAMED INSURED.
O. the disbursement of funds:
1. as the result of the deposit of a COUNTERFEIT check, or
2. without written verification from the issuing bank that the funds are valid and available, or
3. as the result of a fraudulent scheme, or
4. the failure to safeguard any funds or for any funds not reaching the proper party or the intended recipient, for any reason.
Notwithstanding Exclusions H or J, the Company shall have no duty to defend any claim prohibited by Exclusion O.
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This blog is an excerpt from the policy. The complete policy along with applicable endorsements could impact the information provided above.
Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080