Georgia Attorneys Title Guaranty Fund

Underwriting Bulletin No. 93

March 18, 2003

SUBJECT: AMERICAN NATIONAL LAWYERS INSURANCE RECRIPROCAL (ANLIR)
Attached is the Memorandum from the State Bar of Georgia regarding the Receivership of ANLIR. A review of our files indicates that many of you have E & O coverage placed with this carrier. The memo is self- explanatory.

Additionally you may wish to contact TIAC at 1-800-628-5136 or access information through Eagle Central. As you make arrangements please have notice of your replacement coverage sent to us for your file.

From: The State Bar of Georgia
Notice to all American National Lawyers Insurance reciprocal (ANLIR) Insureds

Dear Friends:

You may have read in the February 2003, State Bar Journal that the Bar had given notice of its intention to discontinue recommending ANLIR for professional liability insurance. Under the terms of the recommendation agreement a six-month notice is required and this was given so that our contract was to terminate on May 1, 2003. That action was based on a change by AM Best in its rating of ANLIR from A- to B-. According to AM Best’s rating scales, a B- rating means that in their opinion a company has an ability to meet its current obligations to policyholders, but is financially vulnerable to adverse changes in underwriting and economic conditions.

Since that action was taken additional information has been received concerning the condition of ANLIR. The Reciprocal of America (ROA) reinsures ANLIR’s first layer of insurance.The ROA has agreed to a Virginia Order of Voluntary Rehabilitation and has been directed by the Virginia Bureau of Insurance not to accept any further business that was not already bound as of 1/22/03. In addition the State of Tennessee has issued an Agreed Order of Administrative Supervision which places restrictions on ANLIR’s operations.

The Virginia Order of Voluntary Rehabilitation can be found at http://www.state.va.us/scc/caseinfo/boi/case/roa_rec.pdf and the Tennessee Agreed Order of Administrative Supervision can be found at http://www.state.tn.us/commerce/pdf/ANLIR.pdf If you do not have web capabilities please call Bar Headquarters and we will send you copies.

Contact with Georgia’s ANLIR representative, Ms. Keisha Robbins has confirmed that the company is no longer issuing professional liability insurance in Georgia. This being the case, ANLIR has ceased to fulfill its obligations under our agreement and we now consider it to be terminated. We have notified ANLIR of our position.

Based on the above we recommend that you immediately review your professional liability coverage.

Should you have questions about your present coverage or renewals with ANLIR, their Georgia representative is Ms. Keisha Robbins, at (770) 576-1948, 1-888-889-4664, or Krobbins@reciprocalgroup.com.

While the information contained in this letter reflects the latest developments, as we understand them, in the past few days the situation has changed rapidly. For this reason you may want to check with the Georgia representative and the above sites for further developments.

If you need contact information about other professional liability insurers operating in Georgia the State Bar’s Law Practice Management service will be glad to help. Please call (404) 527-8773 or 1-800-334-6865 to request this information.

At present the State Bar’s Legal Malpractice Committee is monitoring this situation but has no replacement recommendation for professional liability insurance. Due to market conditions not related to the State Bar’s decision regarding ANLIR, the industry forecast is for premium increases by many or most professional liability insurance providers.

We hope this update is of assistance to you.

Sincerely yours,

James B. Durham

Printable version: ub93.pdf*

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