Transcription
2018MISSOURILEGAL MALPRACTICEREPORT
ent of Insurance, Financial Institutions & Professional RegistrationStatistics SectionJuly 2019
Also Available from DIFPReports: The following reports are also available: Missouri Market Share ReportMissouri Real Estate Malpractice (Closed Claim Report)Missouri Legal Malpractice (Closed Claim Report)Missouri Products Liability (Closed Claim Report)Missouri Medical Malpractice Insurance ReportMissouri Health Maintenance Organization ReportMissouri Life, Accident & Health Supplement ReportMissouri Property and Casualty Supplement ReportMissouri Commercial Liability ReportMissouri Mortgage Guaranty ReportMissouri Uninsured Automobile ReportDatabases: for data requests, contact the Statistics Section at 573-751-3163. Some data are available for a fee. Medicare Supplement Experience DataProperty and Casualty Supplement DataMissouri Zip Code data for homeowners/dwelling fire, farmowners (dwelling only, mobile home, earthquake, and privatepassenger automobile insurance.Many reports, including this complaint report, are available at no cost on the DIFP website, athttp://insurance.mo.gov/reports/. For paper copies, inquire with the Statistics Section at the above number.The Department of Insurance, Financial Institutions & Professional Registration is an Equal OpportunityEmployer.
DEFINITION OF TERMSIndemnity Paid: The sum of all payments made during the year for the benefit of insuranceclaimants, before reinsurance has been ceded and/or assumed. These payments include amounts paidin the current year for claims arising from coverage in prior years and exclude amounts which will bepaid in future years for claims arising from the current year. Hence, this item is not a measure of theactual cost of current coverages, but only of current cash flows.Loss Adjustment Expenses: The cost involved in an insurance company’s adjustment of lossesunder a policy.Direct Premiums Written: The dollar amount charged when a policyholder contracts for insurancecoverage before reinsurance has been ceded and/or assumed.Direct Premiums Earned: The part of premium attributable to the coverage already provided in agiven period before reinsurance has been ceded and/or assumed.Direct Losses Incurred: The sum of direct losses paid plus an estimate at the close of the year ofthe amounts to be paid in the future for all claims arising from the current and all prior years, minusthe corresponding estimate made at the close of business for the preceding year. Incurred lossesreported include estimated amounts unpaid for incurred-but-not-reported (IBNR) claims.Loss Ratio: The dollar amount of direct losses incurred divided by the dollar amount of premiumsearned for the particular line of business being analyzed, expressed as a percentage. This is anaccounting representation of the portion of each premium dollar which is needed to honor acompany's promise to pay claims.
LEGAL MALPRACTICE INSURANCE REPORTEXECUTIVE SUMMARYThis report summarizes the legal malpractice insurance experience in Missouri from 2009 to 2018.The charts, graphs and tables in this report are limited to closed claim information and wereconstructed from data collected by the Department of Insurance, Financial Institutions & ProfessionalRegistration as required by Section 383.077 RSMo. The premium and loss data, obtained from the MissouriPage 19 Supplement to the companies’ annual statements are presented in the final section.In 2018, the loss ratio for legal malpractice insurance in Missouri was 38 percent. For the 10-yearperiod of claims closed1, 535 (26 percent) were closed with payment. Claims closed in 2018 totaled 140, a 5percent decrease from the previous year. The average payment was 116,945.The cost to an insurer for settling legal malpractice cases (called loss adjustment expense, consistingof legal fees, claim adjustment costs and related items) has fluctuated over the past 10 years. In 2018, theaverage loss adjustment expense for all claims closed with payment was 85,739 compared to 60,248 in2017.Indemnity amounts are categorized by claim characteristics, including:1 Area of law in which the insured was retained by the claimant. Major activity in which the lawyer was engaged at the time the alleged error or omissionoccurred. Alleged error or omission that was the most significant reason for making the claim. The legal disposition of the claim at the closing date. The number of years the insured had been in practice at the time of the alleged error oromission. The relationship of the insured to the claimant.Claims closed may have resulted from incidents in any previous period.
By area of law, the largest share of claims closed in 2018 (28 of 140) was initiated by plaintiffs inbodily injury/property damage - plaintiff. The largest proportion of all claims closed in 2018 under the majoractivity code occurred during commencement of action or proceeding. Of all claims paid during 2018, 51percent were settled before trial or hearing on the alleged malpractice.Ninety-two percent of losses in 2018 occurred among attorneys with more than 10 years of practice.The insured’s relationship to the claimant is partitioned into four subclasses: free legal service, non-client,member of pre-paid legal plan and client other than free service or prepaid legal plan. Seventy-one percentof 2018 claims occurred in the category of client other than free legal service or member of pre-paid legalplan.Only 15 companies reported writing legal malpractice insurance in Missouri for 2018. Of these, theBar Plan Mutual Insurance Company was by far the largest, with over 59 percent of the legal malpracticeinsurance market in this state.This report was compiled using information submitted by insurance companies. As a result, theaccuracy of this report is dependent upon the correctness of each company’s data. Copies of this report willbe made available in Braille, large print or on audio cassette upon request. Any questions regarding thisreport should be addressed to the Statistics Section, Department of Insurance, Financial Institutions ,MO65102-0690.The Missouri Department of Insurance, Financial Institutions & Professional Registrationis an Equal Opportunity Employer
TABLE OF CONTENTSSECTIONIIIDESCRIPTIONPAGETEN YEAR SUMMARY .3INDEMNITY SUMMARYArea of Law: 10-Year and 2018 Summary .9Trends of the Top 10 Areas of Law .13Major Activity: 10-Year and 2018 Summary .25Trends of the Top 10 Major Activity .29Alleged Errors or Omissions: 10-Year and 2018 Summary .41Trends of the Top 10 Alleged Errors or Omissions .45Claim Disposition: 10-Year and 2018 Summary .57Trends of the Top 8 Claim Dispositions .61Years Admitted to Practice: 10-Year and 2018 Summary .71Trends of Years Admitted to Practice .75Insured/Claimant Relationship: 10-Year and 2018 Summary .81Trends of Insured/Claimant Relationship .85IIIPREMIUM AND LOSS DATA .89
TEN YEARSUMMARY(2009-2018)1
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3Court Proceedings Resulting in PaymentClaims Settled Through Court ProceedingsClosed without PaymentClosed with PaymentAll Closed ClaimsCLOSED MBER PERCENTOFOFCLAIMSCLAIMS 5,514,025 5,514,025 0 75,891,425 75,891,425TOTALINDEMNITYPAID 212,078 30,297 0 141,853 37,293AVERAGEINDEMNITYPAID 3,800,363 10,511,425 16,060,731 26,393,325 42,454,056TOTAL LOSSEXPENSESPAIDLEGAL MALPRACTICE EXPERIENCETEN YEAR SUMMARY(2009-2018) 146,168 57,755 10,700 49,333 20,862AVERAGELOSSEXPENSEPAID
4 106,325CLOSED WITH PAYMENT2009 29,977ALL CLOSED CLAIMS 0 30,000 60,000 90,000 120,000 150,000 180,000 210,0002010 115,015 28,754 97,154 27,8692011 186,625 43,4012012 139,594 12,1622013AVERAGE PAID CLAIM 172,895 39,5682014 156,550 44,4742015MISSOURI LEGAL MALPRACTICE INSURANCE2016 145,046 49,6842017 202,867 83,6142018 116,945 40,931
5 66,923 26,277CLOSED WITH PAYMENTCLOSED WITHOUT PAYMENT2009 18,868ALL CLAIMS 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 29,571 88,714 22,1782010 22,675 56,373 16,1712011 37,700 124,410 28,9322012 7,183 75,270 6,5582013 40,968 138,935 31,7962014 34,283 86,393 24,5432015AVERAGE PAID LOSS ADJUSTMENT EXPENSEMISSOURI LEGAL MALPRACTICE INSURANCE2016 20,403 39,161 13,4142017 42,243 60,248 24,8322018 46,167 85,739 30,009
6Number of Claims64163227CLOSED WITHOUT PAYMENTTOTAL2009CLOSED WITH 11215165502012264241232013CLAIM COUNT 2009-2018201156462014176126502015MISSOURI LEGAL MALPRACTICE INSURANCE1811196220161488761201714091492018
TEN YEAR SUMMARY&2018 SUMMARYBYAREA OF LAW7
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9TOTALBI/PD - PLAINTIFFCOLLECTION & BANKRUPTCYESTATE, TRUST & PROBATEREAL ESTATEFAMILY LAWCORPORATE & BUSINESS ORGANIZATIONBUS TRANSACTION/COMMERCIAL LAWWORKERS COMPENSATIONCRIMINALBI/PD - DEFENDANTCIVIL RIGHTS & COMMISSIONLABOR LAWCONSUMER CLAIMSCONSTRUCTION (BUILDING CONTRACTS)LOCAL GOVERNMENTTAXATIONPATENTS, TRADEMARKS, COPYRIGHTSSECURITIES (S.E.C.)GOVERNMENT CONTRACTS & CLAIMSIMMIGRATION & NATURALIZATIONADMIRALTYENVIRONMENTNATIONAL RESOURCESAREA OF 37%0.19%0.19%0.19% 141,853 174,903 62,250 109,584 91,368 120,372 219,624 160,869 174,587 23,750 322,238 141,295 133,618 77,357 254,086 212,234 265,634 196,875 83,750 52,500 142,000 1,105,000 330,000 300,000AVERAGEINDEMNITYALLNUMBERPERCENT OFPAIDCLOSED OF PAIDPAID CLAIMS PER PAIDCLAIMS CLAIMSCLAIM 75,891,425 22,912,355 4,419,781 7,780,462 4,568,382 5,898,232 5,051,363 4,504,341 3,840,909 213,750 4,833,571 1,554,250 2,271,504 541,500 2,032,684 1,061,172 1,328,169 787,500 167,500 105,000 284,000 1,105,000 330,000 300,000TOTALINDEMNITYLEGAL MALPRACTICE INSURANCEINDEMNITY ANALYSISFOR YEARS 04%0.22%0.14%0.37%1.46%0.43%0.40%PERCENT OFTOTALINDEMNITY 20,862AVERAGELOSSEXPENSEFOR ALLCLOSEDCLAIMS 19,428 8,761 22,656 10,315 15,730 26,607 74,582 7,116 11,861 48,779 9,557 25,505 31,389 64,258 36,337 25,848 188,077 6,762 4,076 4,114 85,064 18,307 68,837
10TOTALBI/PD - PLAINTIFFFAMILY LAWESTATE, TRUST & PROBATECOLLECTION & BANKRUPTCYCORPORATE & BUSINESS ORGANIZATIONREAL ESTATEBUSINESS TRANSACTION/COMMERCIAL LAWCRIMINALLABOR LAWWORKERS COMPENSATIONCONSTRUCTION (BUILDING CONTRACTS)BI/PD - DEFENDANTCONSUMER CLAIMSCIVIL RIGHTS & COMMISSIONLOCAL GOVERNMENTNATIONAL RESOURCESPATENTS, TRADEMARKS, COPYRIGHTSSECURITIES (S.E.C.)AREA OF 4.08%8.16%2.04%2.04%2.04%2.04%0.00%2.04%0.00%0.00% 116,945 122,658 12,500 120,898 54,938 391,290 30,927 129,146N/A 33,875 31,875 103,000 105,060 31,000 15,000N/A 300,000N/AN/AAVERAGEINDEMNITYNUMBER PERCENTALL CLOSEDPAIDOF PAID OF PAIDCLAIMSPER PAIDCLAIMSCLAIMSCLAIM 5,730,322 1,594,551 25,000 967,186 219,750 1,565,161 92,780 516,584 0 67,750 127,500 103,000 105,060 31,000 15,000 0 300,000 0 0TOTALINDEMNITYLEGAL MALPRACTICE INSURANCEINDEMNITY ANALYSISCLAIMS CLOSED IN .00%PERCENT OFTOTALINDEMNITY 30,009AVERAGELOSSEXPENSEFOR ALLCLOSEDCLAIMS 18,433 21,343 37,083 17,999 67,055 6,095 135,181 35,709 14,936 4,525 66,716 512 10,729 6,167 26,052 68,837 0 0
TRENDSOF THE TOP TENAREAS OF LAWOF 201811
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BI/PD - PLAINTIFFAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 350,000 300,000 250,000 200,000 150,000 100,000 50,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 113,034 253,296 167,084 187,901 52,071 308,417 195,002 205,214 96,214 122,658AVG LOSS EXPENSE 20,034 27,113 30,785 5,090 14,515 20,032 17,386 12,879 15,533 18,433CLAIM COUNT8070Number of Claims6050403020100ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 131513
FAMILY LAWAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 18,500 23,244 45,600 36,500 319,161 164,743 42,600 61,528 473,000 12,500AVG LOSS EXPENSE 2,438 31,400 2,037 28,423 6,166 15,512 9,110 19,230 18,461 21,343CLAIM COUNT6054Number of Claims4842363024181260ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 192982126521246182952422319155101899175122422214
ESTATE, TRUST & PROBATEAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 300,000 275,000 250,000 225,000 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 129,445 91,435 93,929 60,000 37,613 169,616 236,000 51,168 115,668 120,898AVG LOSS EXPENSE 22,216 30,465 13,834 9,178 2,101 46,996 30,732 12,756 16,335 37,083CLAIM COUNT4540Number of Claims35302520151050ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 15
COLLECTION & BANRUPTCYAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 36,254 33,089 42,419 28,745 51,000 55,930 22,370 8,986 155,420 54,938AVG LOSS EXPENSE 9,375 10,038 8,838 12,918 1,363 6,885 11,134 5,060 12,735 17,999CLAIM COUNT5045Number of Claims4035302520151050ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 16
CORPORATE & BUSINESS ORGANIZATIONAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 600,000 550,000 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0AVG PAID INDEMNITYAVG LOSS EXPENSE2009201020112012201320142015201620172018 45,000 0 136,875 501,219 4,897 1,216 17,063 16,963 42,589 0 90,000 105,491 222,000 391,290 1,822 10,348 24,269 63,972 169,743 67,055CLAIM COUNT333027Number of Claims24211815129630ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 4041441020416274231101112210431615104617
REAL ESTATEAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 21,622 14,890 55,315 450,692 26,667 82,122 182,750 37,250 27,500 30,927AVG LOSS EXPENSE 5,948 10,326 17,981 10,015 5,915 11,844 18,293 6,987 10,367 6,095CLAIM COUNT524844Number of Claims4036322824201612840ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 21242223313202542148345307231851318414725103718
BUSINESS TRANSACTION/COMMERCIAL LAWAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 550,000 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 437,344 62,667 38,500AVG LOSS EXPENSE 88,524 27,775 43,598 159,856 0 195,450 147,500 104,833 85,000 129,146 117,820 6,830 50,471 144,208 10,000 38,929 135,181CLAIM COUNT3228Number of Claims24201612840ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 863392715411707124874343121164219
CRIMINALAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 120,000 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0200920102011201220132014201520162017AVG PAID INDEMNITY 3,000 100,000 0 3,750 0 0 10,000 44,000 2,2502018 0AVG LOSS EXPENSE 5,658 35,555 5,737 8,616 13,020 0 624 6,625 3,326 35,709CLAIM COUNT2018Number of Claims1614121086420ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 817707624909606413102861550520
LABOR LAWAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 250,000 225,000 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 0AVG PAID INDEMNITYAVG LOSS EXPENSE2009201020112012201320142015201620172018 225,000 0 41,721 11,292 0 0 130,000 37,500 167,333 197,551 94,667 33,875 0 113,602 2,565 5,105 30,487 34,464 15,494 14,936CLAIM COUNT15Number of Claims129630ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 40420230331252353265163352321
WORKERS COMPENSATIONAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 19,769 34,129 19,250 85,000 0 50,000 417,000 963,757 25,000 31,875AVG LOSS EXPENSE 5,634 16,586 2,575 19,961 0 3,524 2,277 13,273 4,764 4,525CLAIM COUNT1614Number of Claims121086420ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 892782631260641391893631254122
TEN YEAR SUMMARY&2018 SUMMARYBYMAJOR ACTIVITY23
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25TOTALCOMMENCEMENT OF ACTION OR PROCEEDINGOTHERPREPARATION, TRANSMITTAL OR FILINGPRE-TRIAL, PRE-HEARINGSETTLEMENT AND NEGOTIATIONCONSULTATION OR ADVICETRIAL OR HEARINGINVESTIGATION, OTHER THAN LITIGATIONOTHER WRITTEN OPINIONAPPEAL ACTIVITIESPOST TRIAL OR HEARINGTAX REPORTING OR PAYMENTEXPARTE PROCEEDINGSREFERRAL TO ANOTHER PROFESSIONALTITLE OPINIONMAJOR ACTIVITY %0.37% 141,853 127,016 114,124 91,849 167,281 151,872 196,523 421,696 96,230 133,447 56,920 357,206 100,549 5,000 107,667 275,000AVERAGEINDEMNITYALLNUMBERPERCENT OFPAIDCLOSED OF PAIDPAID CLAIMS PER PAIDCLAIMS CLAIMSCLAIM 75,891,425 18,671,343 13,352,483 7,347,920 10,204,156 5,771,118 5,306,126 8,433,927 1,347,225 934,128 284,602 2,857,650 502,747 5,000 323,000 550,000TOTALINDEMNITYLEGAL MALPRACTICE INSURANCEINDEMNITY ANALYSISFOR YEARS NT OFTOTALINDEMNITY 20,862AVERAGELOSSEXPENSEFOR ALLCLOSEDCLAIMS 16,315 13,522 23,302 35,656 17,856 42,907 50,615 23,415 24,927 19,467 25,246 28,553 25,438 13,092 39,466
26TOTALCOMMENCE OF ACTION OR PROCEEDINGPRE-TRIAL, PRE-HEARINGPREPARATION, TRANSMITTAL OR FILINGSETTLEMENT AND NEGOTIATIONCONSULTATION OR ADVICEOTHERINVESTIGATION, OTHER THAN LITIGATIONPOST TRIAL OR HEARINGTRIAL OR HEARINGEXPARTE PROCEEDINGSAPPEAL ACTIVITIESOTHER WRITTEN OPINIONMAJOR ACTIVITY 00%0.00%0.00% 116,945 123,546 143,667 71,872 58,287 235,727 104,888 162,000N/A 348,110N/AN/AN/AAVERAGEINDEMNITYALLNUMBERPERCENT OFPAIDCLOSED OF PAIDPAID CLAIMS PER PAIDCLAIMS CLAIMSCLAIM 5,730,322 1,606,100 431,000 790,597 408,008 707,180 629,327 810,000 0 348,110 0 0 0TOTALINDEMNITYLEGAL MALPRACTICE INSURANCEINDEMNITY ANALYSISCLAIMS CLOSED IN %0.00%6.07%0.00%0.00%0.00%PERCENT OFTOTALINDEMNITY 30,009AVERAGELOSSEXPENSEFOR ALLCLOSEDCLAIMS 41,175 19,359 10,149 4,497 72,449 34,405 25,938 1,512 53,245 65,814 0 48,132
TRENDSOF THE TOP TENMAJOR ACTIVITYOF 201827
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COMMENCEMENT OF ACTION OR PROCEEDINGAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 300,000 270,000 240,000 210,000 180,000 150,000 120,000 90,000 60,000 30,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 76,562 107,261 93,996 189,992 265,000 138,591 105,114 129,756 208,997 123,546AVG LOSS EXPENSE 14,327 19,830 18,255 5,841 2,552 28,793 12,902 12,573 21,476 41,175CLAIM COUNT120Number of Claims100806040200ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 8132529
PRE-TRIAL, PRE-HEARINGAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 69,500 72,115 135,617 133,817 83,200 292,200 161,250 338,496 279,834 143,667AVG LOSS EXPENSE 17,793 39,738 30,963 61,609 5,815 125,286 83,885 23,589 12,032 19,359CLAIM COUNT5045Number of Claims4035302520151050ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 16193162413112613132652112578441037208122332030
PREPARATION, TRANSMITTAL OR FILINGAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 69,686 69,568 70,444 97,500 372,500 130,832 128,500 60,777 89,061 71,872AVG LOSS EXPENSE 20,935 41,806 31,049 22,834 18,615 57,232 14,451 8,899 16,623 10,149CLAIM COUNT3632Number of Claims2824201612840ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 1621101123914725123917710143113313202915141811731
SETTLEMENT AND NEGOTIATIONAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 80,666 1,463,067 47,968 68,000 26,785 282,877 37,500 119,143 19,125 58,287AVG LOSS EXPENSE 24,886 31,498 2,654 20,280 64,926 4,024 6,799 23,152 11,415 4,497CLAIM COUNT4035Number of Claims302520151050ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 10927725936817624154111174174131771032
CONSULTATION OR ADVICEAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 1,200,000 1,000,000 800,000 600,000 400,000 200,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 264,538 75,000 42,500 1,000,000 105,402 64,450 202,750 136,000 200,000 235,727AVG LOSS EXPENSE 61,045 24,956 22,878 79,248 38,425 8,249 89,270 17,523 16,850 72,449CLAIM COUNT120105Number of Claims9075604530150ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 711381321171672551484413589181331033
OTHERAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 525,000 450,000 375,000 300,000 225,000 150,000 75,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 25,923 27,447 56,046 180,578 39,476 210,421 183,125 48,100 482,503 104,888AVG LOSS EXPENSE 2,127 6,718 2,312 29,090 3,113 25,813 16,739 9,110 96,403 34,405CLAIM COUNT120105Number of Claims9075604530150ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 6634
INVESTIGATION, OTHER THAN LITIGATIONAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 350,000 300,000 250,000 200,000 150,000 100,000 50,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 32,833 25,000 0 5,000 135,908 0 0 0 1,000 162,000AVG LOSS EXPENSE 11,959 8,799 300,210 4,946 804 804 2,164 0 9,710 25,938CLAIM COUNT18Number of Claims15129630ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 21120251443130330330361595435
POST TRIAL OR HEARINGAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 0 125,000 575,000 19,500 0 2,650 0 1,047,500 21,000 0AVG LOSS EXPENSE 10,445 47,367 28,402 31,038 0 0 0 65,865 13,157 1,512CLAIM COUNT12Number of Claims1086420ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 71631242220221110122011030336
TRIAL OR HEARINGAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 750,000 675,000 600,000 525,000 450,000 375,000 300,000 225,000 150,000 75,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 490,606 29,267 700,000 432,500 0 355,000 497,222 0 477,731 348,110AVG LOSS EXPENSE 83,873 76,378 7,309 14,701 0 32,346 96,035 24,036 52,128 53,245CLAIM COUNT1412Number of Claims1086420ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 662471694510142263310163331237
EXPARTE PROCEEDINGSAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 0 0 0 5,000 0 0 0 0 0 0AVG LOSS EXPENSE 0 58,877 0 2,500 0 0 0 0 0 65,814CLAIM COUNT109Number of Claims876543210ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 20210121110100010100010120238
TEN YEAR SUMMARY&2018 SUMMARYBYALLEGED ERRORS OR OMISSIONS39
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41TOTALOTHERFAIL TO ASCERTAIN DEADLINE CORRECTLYPLANNING OR STRATEGY ERRORFAIL TO KNOW OR PROPERLY APPLY THE LAWINADEQUATE INVESTIGATIONFAIL TO FOLLOW CLIENTS INSTRUCTIONSFRAUDPROCRASTINATION OR LACK OF FOLLOW-UPFAIL TO FILE DOCUMENTS WITH NO DEADLINEMALICIOUS PROSECUTION OR ABUSE OF PROCESSCONFLICT OF INTERESTFAILURE TO CALENDAR PROPERLYFAIL TO OBTAIN CLIENTS CONSENTFAILURE TO REACT TO CALENDARVIOLATION OF CIVIL RIGHTSCLERICAL ERRORERROR IN MATHEMATICAL CALCULATIONFAIL TO ANTICIPATE TAX CONSEQUENCESLIBEL OR SLANDERIMPROPER WITHDRAWAL FROM REPRESENTATIONERROR IN PUBLIC RECORD SEARCHLOST FILE, DOCUMENT OR EVIDENCENOT SPECIFIEDERROR OR %0.37%0.37%0.56%0.19%0.00% 141,853 100,620 157,046 210,747 122,820 143,528 157,962 108,313 175,691 44,196 39,990 310,962 107,120 486,694 108,372 70,933 53,258 50,554 373,417 35,000 23,750 22,833 195,000N/AAVERAGEINDEMNITYALLNUMBERPERCENT OFPAIDCLOSED OF PAIDPAID CLAIMS PER PAIDCLAIMS CLAIMSCLAIM 75,891,425 6,037,180 11,935,497 13,066,327 7,614,834 6,028,169 3,159,246 2,166,266 4,392,278 1,281,679 679,833 7,463,083 3,963,454 2,920,161 1,842,318 425,600 585,842 454,989 1,493,669 70,000 47,500 68,500 195,000 0TOTALINDEMNITYLEGAL MALPRACTICE INSURANCEINDEMNITY ANALYSISFOR YEARS .60%1.97%0.09%0.06%0.09%0.26%0.00%PERCENT OFTOTALINDEMNITY 20,862AVERAGELOSSEXPENSEFOR ALLCLOSEDCLAIMS 11,723 7,338 29,594 26,831 32,312 19,147 39,377 17,802 12,292 29,688 77,714 16,449 23,061 13,104 9,920 14,155 13,912 25,628 12,506 2,846 8,926 9,628 0
42TOTALFAIL TO KNOW OR PROPERLY APPLY THE LAWPLANNING OR STRATEGY ERRORINADEQUATE INVESTIGATIONFAIL TO ASCERTAIN DEADLINE CORRECTLYFRAUDOTHERFAIL TO OBTAIN CLIENTS CONSENTFAILURE TO REACT TO CALENDARVIOLATION OF CIVIL RIGHTSCONFLICT OF INTERESTFAIL TO FOLLOW CLIENTS INSTRUCTIONSFAILURE TO CALENDAR PROPERLYMALICIOUS PROSECUTION OR ABUSE OF PROCESSPROCRASTINATION OR LACK OF FOLLOW-UPCLERICAL ERRORERROR IN MATHEMATICAL CALCULATIONFAIL TO FILE DOCUMENTS WITH NO DEADLINEIMPROPER WITHDRAWAL FROM REPRESENTATIONFAIL TO ANTICIPATE TAX CONSEQUENCESERROR IN PUBLIC RECORD SEARCHERROR OR 12%0.00%0.00%0.00% 116,945 131,701 175,180 26,213 81,386 34,500 234,167 460,161 107,500 10,300 441,667 63,873 29,060 55,000N/A 87,158 65,000 22,147N/AN/AN/AAVERAGEINDEMNITYALLNUMBERPERCENT OFPAIDCLOSED OF PAIDPAID CLAIMS PER PAIDCLAIMS CLAIMSCLAIM 5,730,322 1,185,310 350,360 104,851 569,700 69,000 702,500 460,161 215,000 20,600 1,325,000 127,746 87,180 55,000 0 261,474 130,000 66,440 0 0 0TOTALINDEMNITYLEGAL MALPRACTICE INSURANCEINDEMNITY ANALYSISCLAIMS CLOSED IN .00%0.00%0.00%PERCENT OFTOTALINDEMNITY 30,009AVERAGELOSSEXPENSEFOR ALLCLOSEDCLAIMS 55,507 44,665 21,634 6,665 26,282 35,461 21,671 1,980 7,768 105,191 23,740 6,026 78,959 7,164 10,797 1,657 0 0 57,084 0
TRENDSOF THE TOP TENERRORS OR OMISSIONSOF 201843
44
FAILURE TO KNOW OR PROPERLY APPLY THE LAWAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 350,000 300,000 250,000 200,000 150,000 100,000 50,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 47,803 95,154 83,500 155,900 22,268 64,275 199,625 86,960 311,375 131,701AVG LOSS EXPENSE 43,640 32,624 11,307 36,119 6,452 46,633 43,061 10,455 11,385 55,507CLAIM COUNT4035Number of Claims302520151050ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 1113582081215510193161349144103510251679189945
PLANNING OR STRATEGY ERRORAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 550,000 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 230,381 384,386 247,734 85,753 172,045 252,229 211,250 224,000 98,298 175,180AVG LOSS EXPENSE 46,027 54,173 15,244 22,466 4,236 53,307 55,241 20,537 16,568 44,665CLAIM COUNT4035Number of Claims302520151050ALL CLAIMSCLOSED WITH PAYMENTCLOSED WITHOUT 102810182791825916275221349114721516259161621446
INADEQUATE INVESTIGATIONAVERAGE PAID INDEMNITY & AVERAGE LOSS EXPENSE 550,000 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 02009201020112012201320142015201620172018AVG PAID INDEMNITY 77,500 30,390 74,500 94,045 375,000 202,264 75,000 444,125 30,400 26,213AVG LOSS EXPENSE 15,700 30,962 10,919 86,762 402 39,950 24,396 29,908 21,250 21,634CLAIM COUNT2421Number of Claims
Only 15 companies reported writing legal malpractice insurance in Missouri for 2018. Of these, the Bar Plan Mutual Insurance Company was by far the largest, with over 59 percent of the legal malpractice insurance market in this state. This report was compiled using information submitted by insurance companies. As a result, the
