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2021MISSOURI LEGALMALPRACTICE INSURANCEREPORTMISSOURI DEPARTMENT OF COMMERCE & INSURANCESTATISTIC SECTIONJUNE 2022
DEFINITION OFTERMSIndemnity 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 amountspaidin the current year for claims arising from coverage in prior years and exclude amounts whichwill be paid in future years for claims arising from the current year. Hence, this item is not ameasure 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 forinsurancecoverage before reinsurance has been ceded and/or assumed.Direct Premiums Earned: The part of premium attributable to the coverage already provided inagiven 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 yearofthe 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. Incurredlosses reported 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 ofpremiumsearned for the particular line of business being analyzed, expressed as a percentage.This is an accounting representation of the portion of each premium dollar which is needed tohonor a company's promise to pay claims.
LEGAL MALPRACTICE INSURANCE REPORTEXECUTIVE SUMMARYThis report summarizes the legal malpractice insurance experience in Missouri from 2012to 2021.The charts, graphs and tables in this report are limited to closed claim information andwere constructed from data collected by the Department of Commerce and Insurance asrequired by Section 383.077 RSMo. The premium and loss data, obtained from the Missouri Page19 Supplement to the companies’ annual statements, are presented in the final section.In 2021, the loss ratio for legal malpractice insurance in Missouri was 48 percent. For the10-year period of claims closed, 465 (28 percent) were closed with payment. Claims closed in2021 totaled 104, a decrease of 24 percent from the previous year. The average payment was 134,707.The cost to an insurer for settling legal malpractice cases (called loss adjustment expense,consisting of legal fees, claim adjustment costs and related items) has fluctuated over the past 10years. In 2021, the average loss adjustment expense for all claims closed with payment was 46,993 compared to 53,717 in 2020.Indemnity amounts are categorized by claim characteristics, including: 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 oromissionoccurred. 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 allegederror oromission. The relationship of the insured to the claimant.
The largest class of cases in 2021 consisted of bodily injury / property damage claims (29 of104). The largest proportion of all claims closed in 2021 pertained to an alleged deficiency with respectto the commencement of action or proceeding. Of all claims paid during 2021, 50 percent were settledbefore filing suit or demanding hearing on the alleged malpractice.Fifty-five percent of losses in 2021 occurred among attorneys with more than 10 years ofpractice. 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.Eighty-severn percent of 2021 claims occurred in the category of client other than free legal service ormember of pre-paid legal plan.Only 15 companies reported writing legal malpractice insurance in Missouri for 2021. Of these,the Bar Plan Mutual Insurance Company was largest, with over 54 percent of the legal malpracticeinsurance market in this state.This report was compiled using information submitted by insurance companies. As a result,the accuracy of this report is dependent upon the correctness of each company’s data. Copies of thisreport willbe made available in Braille, large print or on audio cassette upon request. Any questionsregarding this report should be addressed to the Statistics Section, Department of Commerce andInsurance, P.O. Box 690,Jefferson City, MO 65102-0690.The Missouri Department of Commerce and Insurance is an Equal OpportunityEmployer
TABLE OF CONTENTSSECTIONIIIDESCRIPTIONPAGETEN YEAR SUMMARY . 3INDEMNITY SUMMARYArea of Law: 10-Year and 2020 Summary . 9Trends of the Top 10 Areas of Law . 13Major Activity: 10-Year and 2020 Summary. 25Trends of the Top 10 Major Activity . 29Alleged Errors or Omissions: 10-Year and 2020 Summary. 41Trends of the Top 10 Alleged Errors or Omissions . 45Claim Disposition: 10-Year and 2020 Summary. 57Trends of the Top 8 Claim Dispositions. 61Years Admitted to Practice: 10-Year and 2020 Summary . 69Trends of Years Admitted to Practice . 73Insured/Claimant Relationship: 10-Year and 2020 Summary .79Trends of Insured/Claimant Relationship .83IIIPREMIUM AND LOSS DATA . 89
Legal Malpractice ClaimsTen Year Summary2012-2021Closed ClaimsAll Closed ClaimsClosed With PaymentClosed Without PaymentClaims Settled Through Court ProceedingsCourt Proceeding Resulting in PaymentNumber ofClaimsPercent ofAll ClaimsTotalIndemnityPaidAverageIndemnityPaidTotal LossExpensesAverage LossExpense1,656100.0% 77,212,724 46,626 35,261,961 21,29346528.1% 77,212,724 166,049 21,196,370 45,5841,19171.9% 0 0 14,065,591 11,8101317.9% 3,085,132 23,551 6,639,124 50,680130.8% 3,085,132 237,318 1,997,987 153,6911
Average Paid Claim by Year2012201320142015201620172018201920202021All Claims 43,401 12,208 38,986 43,975 49,960 84,183 41,059 80,706 78,177 38,858Closed With Payment 186,625 139,594 172,895 156,550 145,046 202,867 116,606 223,893 172,745 134,7072
Average Claim Expense by Year2012201320142015201620172018201920202021All Closed Claims 28,932 6,583 31,329 24,268 13,489 24,947 30,642 16,429 24,310 13,556Closed With Payment 124,410 75,270 138,935 86,393 39,161 60,119 87,024 45,578 53,717 46,9933
Claim CountClosed With PaymentClosed Without 155862020627513720213074104
Summary by Area of LawPrior Ten Years5
Claim Closed, 2012-2021Area of LawBI/PD - PLAINTIFFCOLLECTION & BANKRUPTCYESTATE, TRUST & PROBATEFAMILY LAWREAL ESTATECORPORATE & BUSINESS ORGANIZATIONBUSINESS TRANSACTION/COMMERCIAL LAWCRIMINALWORKERS COMPENSATIONBI/PD - DEFENDANTLABOR LAWCIVIL RIGHTS & COMMISSIONCONSUMER CLAIMSLOCAL GOVERNMENTCONSTRUCTION (BUILDING CONTRACTS)TAXATIONPATENTS, TRADEMARKS, COPYRIGHTSSECURITIES (S.E.C.)IMMIGRATION & NATURALIZATIONGOVERNMENT CONTRACTS & CLAIMSADMIRALTYENVIRONMENTNATIONAL RESOURCESAll NumberClosedof t 0.2%0.2%AverageIndemnityPer PaidClaim 164,042 123,048 141,585 130,833 122,247 227,313 246,973 65,583 215,620 373,080 101,457 206,674 92,000 232,151 146,243 564,335 326,250 42,500 81,000 62,500 1,105,000 330,000 300,000TotalIndemnity 16,076,098 8,613,384 8,636,709 6,410,820 3,789,662 4,546,263 5,680,375 590,250 4,096,784 7,834,689 2,333,504 1,860,065 552,000 1,160,754 1,023,698 1,128,669 652,500 42,500 324,000 125,000 1,105,000 330,000 300,000Percent 1.4%0.4%0.4%AverageLossExpense,All ClosedClaims 13,711 9,513 26,787 17,672 9,444 33,821 75,714 13,478 5,283 42,267 23,762 14,083 43,749 43,187 30,513 18,037 301,328 8,947 3,333 4,317 85,064 18,307 68,837
Claims Closed in 2021Area of LawBI/PD - PLAINTIFFFAMILY LAWESTATE, TRUST & PROBATEWORKERS COMPENSATIONCOLLECTION & BANKRUPTCYBI/PD - DEFENDANTREAL ESTATELABOR LAWBUSINESS TRANSACTION/COMMERCIAL LAWCIVIL RIGHTS & COMMISSIONCONSUMER CLAIMSCORPORATE & BUSINESS ORGANIZATIONCRIMINALTAXATIONAll NumberClosedof entof 6.7%AverageIndemnityPer PaidClaim 113,004.00 93,420 31,250 21,400 11,833 57,500 29,501 102,500 914,000 197,5333.3% 12,400TotalIndemnity 791,028.00 560,520 62,500 64,200 35,500 57,500 29,501 205,000 1,828,000 395,065 0 12,400 0 0Percent 45.2%9.8%0.0%0.3%0.0%0.0%AverageLossExpense,All ClosedClaims 8,006 24,399 14,368 4,632 12,752 10,898 6,918 24,274 73,540 17,006 3,700 5,000 0 0
Trends in the Top 10 Areas of Law8
BI/PD PlaintiffAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 187,901 52,071 308,417 195,002 205,214 96,214 121,039 227,267 90,250 113,004Avg Loss Expense 5,090 14,515 20,032 17,386 13,375 15,533 21,246 13,904 9,047 8,006BI/PD PlaintiffClosed ClaimsAll ClaimsPaid ClaimsClosed 115917229
Estate, Trust & ProbateAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 60,000 37,613 169,616 236,000 51,168 115,668 120,898 163,730 272,987 31,250Avg Loss Expense 9,178 2,101 46,996 32,196 12,756 16,335 35,397 3,647 79,750 14,368Estate, Trust & ProbateClosed ClaimsAll ClaimsPaid ClaimsClosed 47111110
Family LawAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 36,500 319,161 164,743 42,600 61,528 473,000 12,500 30,770 58,442 93,420Avg Loss Expense 28,423 6,166 15,512 9,110 19,230 18,461 21,343 22,095 16,651 24,399Family LawClosed Claims2012All Claims24Paid Claims6Closed Without Payment 18242222019103720201651120211468
BI/PD DefendantAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 148,333 350,000 0 0 220,104 898,807 105,060 0 376,722 57,500Avg Loss Expense 114,533 21,826 369,327 0 9,366 59,407 512 4,244 3,273 10,898BI/PD DefendantClosed Claims2012All Claims11Paid Claims3Closed Without Payment 02202014952021514
Collection & BankruptcyAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 28,745 51,000 55,930 22,370 8,986 155,420 54,938 497,066 147,189 11,833Avg Loss Expense 12,918 1,363 6,885 11,134 5,060 12,735 17,999 13,852 20,996 12,752Collection & BankruptcyClosed ClaimsAll ClaimsPaid ClaimsClosed 7613
Criminal LawAverage Indemnity & Expense20122013Avg Indemnity 3,750 0Avg Loss Expense 8,616 13,0202014 0 02015201620172018201920202021 10,000 44,000 2,250 0 20,000 231,250 0 624 6,625 2,416 29,758 5,296 39,916 0Criminal LawClosed ClaimsAll ClaimsPaid ClaimsClosed 1201860201941202092202110496384637114
Real EstateAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 450,692 26,667 82,122 182,750 37,250 27,500 30,927 46,004 29,501Avg Loss Expense 10,015 5,915 11,844 18,293 6,987 10,367 6,772 13,470 4,190 6,918Real EstateClosed Claims2012All Claims25Paid Claims4Closed Without Payment 8936201910282020882021514
Labor LawAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 0 130,000 37,500 167,333 197,551 94,667 33,875 16,400 102,500 16,400Avg Loss Expense 113,602 2,565 5,105 30,487 34,464 15,494 14,936 0 24,274 0Labor LawClosed ClaimsAll ClaimsPaid ClaimsClosed 201852201955202042202155323213302016
Workers CompensationAverage Indemnity & Expense2012Avg Indemnity 85,000Avg Loss Expense 19,9612013 0 020142015201620172018201920202021 50,000 417,000 963,757 25,000 31,875 10,313 106,625 21,400 3,524 2,277 13,273 4,764 4,525 0 0 4,632Workers CompensationClosed Claims2012All Claims3Paid Claims1Closed Without 412019211202054120211239
Business / Commercial LawAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 159,856 0 195,450 147,500 104,833 85,000 129,146 0 925,066 914,000Avg Loss Expense 117,820 6,830 50,471 144,208 10,000 38,929 135,181 29,764 39,038 73,540Business / Commercial LawClosed Claims2012All Claims15Paid Claims4Closed Without Payment 950520203122021321
10 Year SummaryBy Major Activity19
Legal Process Implicated in Allegation, 2012-2021Major ActivityCOMMENCEMENT OF ACTION OR PROCEEDINGOTHERPREPARATION, TRANSMITTAL OR FILINGPRE-TRIAL, PRE-HEARINGSETTLEMENT AND NEGOTIATIONCONSULTATION OR ADVICEINVESTIGATION, OTHER THAN LITIGATIONTRIAL OR HEARINGOTHER WRITTEN OPINIONAPPEAL ACTIVITIESPOST TRIAL OR HEARINGTAX REPORTING OR PAYMENTEXPARTE PROCEEDINGSREFERRAL TO ANOTHER PROFESSIONALTITLE OPINIONTOTALAll umber ofPaidClaims12771776046251416737523246520Percent %0.6%1.5%1.1%0.4%0.6%0.4%100%AverageIndemnityPer PaidTotalClaimIndemnity 135,067 17,153,557.00 202,755 14,395,584 120,768 9,299,161 179,897 10,793,846 151,001 6,946,029 164,699 4,117,485 249,552 3,493,725 358,605 5,737,677 133,447 934,128 69,167 207,500 379,664 2,657,650 111,734 558,669 22,357 44,713 107,667 323,000 275,000 550,000 166,049 77,212,724Percent se,All ClosedClaims 15,641 22,060 21,479 31,617 17,453 32,564 9,701 36,877 26,826 13,343 16,632 67,012 15,638 14,362 39,466 21,371
Legal Process Implicated in Action, 2021Major ActivityCOMMENCEMENT OF ACTION ORPROCEEDINGPREPARATION, TRANSMITTAL OR FILINGPRE-TRIAL, PRE-HEARINGOTHERSETTLEMENT AND NEGOTIATIONCONSULTATION OR ADVICEINVESTIGATION, OTHER THAN LITIGATIONAPPEAL ACTIVITIESTRIAL OR HEARINGPOST TRIAL OR HEARINGTAX REPORTING OR PAYMENTTOTALAll NumberClosedof 1Percentof PaidClamsAverageIndemnityPer 0%0.0%100.0% 67,757 314,808 43,700 0 98,473 9,200 300,000 0 0 0 0 134,707Percent ofTotalTotalIndemnity Indemnity 948,593.00 2,203,657 87,400 0 492,364 9,200 300,000 0 0 0 0 4,041,214AverageLossExpense,AllClosedClaims23.5% 11,669.0054.5% 32,9272.2% 21,6400.0% 10012.2% 13,5000.2% 8657.4% 7,6810.0% 00.0% 00.0% 25,0000.0% 0100.0% 13,556
Top 10 Areas of Activity ImplicatedIn Legal Malpractice ClaimsPrior 10 Years22
Pre-Trial, Pre-HearingAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 133,817 83,200 292,200 161,250 338,496 279,834 143,667 57,500 194,589 43,700Avg Loss Expense 61,609 5,815 125,286 83,885 23,589 12,032 19,802 7,683 8,280 21,640Pre-Trial, Pre-HearingClosed ClaimsAll ClaimsPaid ClaimsClosed Without 7201720812201822319201910462020241311202112210
OtherAverage Indemnity & Expense201220132014201520162017201820192020Avg Indemnity 180,578 39,476 210,421 183,125 48,100 482,503 104,888 482,500 544,500Avg Loss Expense 29,090 3,113 25,813 17,128 9,448 96,403 36,343 38,067 55,2702021 100OtherClosed ClaimsAll ClaimsPaid ClaimsClosed Without 0162710172017146820181367201982620201741320211010
Settlement / NegotiationAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 68,000 26,785 282,877 37,500 119,143 19,125 58,287 931,625 51,346 98,473Avg Loss Expense 20,280 64,926 4,024 6,799 23,152 11,636 4,247 53,811 15,014 13,500Settlement / NegotiationClosed ClaimsAll ClaimsPaid ClaimsUnpaid 1641220181871120195412020169720211055
Preparation, Transmittal or FilingAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 97,500 372,500 130,832 128,500 60,777 89,061 71,872 121,048 74,586 314,808Avg Loss Expense 22,834 18,615 57,232 14,451 8,899 16,623 10,149 16,519 34,089 32,927Preparation, Transmittal or FilingClosed ClaimsAll ClaimsPaid ClaimsUnpaid 02017291514201818117201917892020148620211679
Consultation or AdviceAverage Indemnity & Expense201220132014201520162017201820192020Avg Indemnity 1,000,000 105,402 64,450 202,750 136,000 200,000 235,727 76,416 51,401Avg Loss Expense 79,248 38,425 8,249 89,270 17,523 16,850 72,449 5,793 5,0742021 9,200 865Consultation or AdviceClosed ClaimsAll ClaimsPaid ClaimsUnpaid 820181331020191239202010462021918
Investigation other than LitigationAverage Indemnity & Expense2012Avg Indemnity 5,000Avg Loss Expense 4,9462013 135,908 8042014 0 8042015 0 2,1642016 0 02017 1,000 9,7102018201920202021 162,000 0 656,667 300,000 29,180 14,672 4,556 7,681Investigation other than LitigationClosed ClaimsAll ClaimsPaid ClaimsUnpaid 2018853201950520206332021615
Trial or HearingAverage Indemnity & Expense20112012Avg Indemnity 700,000 432,500Avg Loss Expense 7,309 14,7012013 0 0201420152016201720182019 355,000 497,222 0 477,731 348,110 2,354 32,346 96,035 24,036 52,128 39,934 2,5792020 20,000 32,583Trial or HearingClosed ClaimsAll ClaimsPaid ClaimsUnpaid 2017633201841320194222020422
Appeals ActivityAverage Indemnity & Expense2012Avg Indemnity 0Avg Loss Expense 268,5632013 0 02015 0 6662016 0 02017 78,750 02018 0 02019 50,000 5,0882020 0 3,8562021 0 02018101201931320202022021202Appeals ActivityClosed ClaimsAll ClaimsPaid Claimsunpaid2012101201330320153032016303302017424
ReferralsAverage Indemnity & ExpenseAvg IndemnityAvg Loss Expense2012 0 02013 0 02014 0 020152016 145,000 33,000 45,822 02017 0 02018 0 02019 0 02020 0 4,4442021 0 d ClaimsAll ClaimsPaid ClaimsUnpaid Claims2012000201310120141012015222312016111
10 Year Summary of Claims ActivityBy Alleged Error or Omission32
Indemnity Analysis, 2012-2021Alleged Error or OmissionOTHERPLANNING OR STRATEGY ERRORFAIL TO ASCERTAIN DEADLINE CORRECTLYFAIL TO KNOW OR PROPERLY APPLY THE LAWINADEQUATE INVESTIGATIONMALICIOUS PROSECUTION OR ABUSE OFPROCESSPROCRASTINATION OR LACK OF FOLLOW-UPFAIL TO FOLLOW CLIENTS INSTRUCTIONSFRAUDCONFLICT OF INTERESTFAIL TO FILE DOCUMENTS WITH NO DEADLINEFAILURE TO CALENDAR PROPERLYFAIL TO OBTAIN CLIENTS CONSENTCLERICAL ERRORFAILURE TO REACT TO CALENDARVIOLATION OF CIVIL RIGHTSIMPROPER WITHDRAWAL FROMREPRESENTATIONLIBEL OR SLANDERERROR IN MATHEMATICAL CALCULATIONFAIL TO ANTICIPATE TAX CONSEQUENCESERROR IN PUBLIC RECORD SEARCHLOST FILE, DOCUMENT OR EVIDENCETOTALTotalIndemnity 6,269,129 11,887,618 9,789,689 8,524,680 8,003,516Percent ll ClosedClaims 13,633.55 23,088.70 8,017.96 25,755.76 35,546.56All ClosedClaims369173168161108Number ofPaid Claims4152555641Percent ofPaid Clams8.8%11.2%11.8%12.0%8.8%AverageIndemnityPer PaidClaim 152,906 228,608 177,994 152,226 .9%5.6%4.5%3.4%5.4%5.8%7.3%3.0%2.8%1.5%0.6% 61,907 191,375 185,890 124,848 259,402 50,326 109,897 365,904 75,195 105,759 73,533 1,114,333 4,975,747 3,903,683 1,997,563 6,485,051 1,358,810 3,736,508 5,122,661 977,541 740,313 220,6001%6%5%3%8%2%5%7%1%1%0% 24,387.29 9,464.93 21,352.95 47,885.09 77,861.13 18,152.73 10,419.08 34,813.48 6,482.03 3,874.52 9,777.1118161313331,65022740.4%0.4%1.5%0.9% 23,750 35,000 43,102 372,76714650.2%100.0% 195,000 166,049 47,500 70,000 301,713 1,491,069 0 195,000 77,212,7240%0%0%2%0%0%100% 3,842.22 11,611.38 13,504.08 32,995.54 0.00 12,477.33 21,370.8933
Allegation Category, 2021Alleged Error or OmissionOTHERPLANNING OR STRATEGY ERRORINADEQUATE INVESTIGATIONFAIL TO KNOW OR PROPERLY APPLY THE LAWFRAUDFAIL TO FILE DOCUMENTS WITH NO DEADLINEPROCRASTINATION OR LACK OF FOLLOW-UPFAIL TO ASCERTAIN DEADLINE CORRECTLYFAILURE TO CALENDAR PROPERLYFAILURE TO REACT TO CALENDARMALICIOUS PROSECUTION OR ABUSE OFPROCESSFAIL TO FOLLOW CLIENTS INSTRUCTIONSCLERICAL ERRORLIBEL OR SLANDERFAIL TO OBTAIN CLIENTS CONSENTVIOLATION OF CIVIL RIGHTSCONFLICT OF INTERESTFAIL TO ANTICIPATE TAX CONSEQUENCESIMPROPER WITHDRAWAL FROMREPRESENTATIONTOTALTotalIndemnity 180,000 317,000 2,375,000 408,364 0 194,201 76,000 160,065 107,750 0Percent 2.7%0.0%AverageLossExpense,All ClosedClaims 9,470 10,874 31,819 27,639 15,039 36,142 2,148 4,156 2,589 0All ClosedClaims1311109877665Number ofPaidClaims1364052230Percent 0%0.0%AverageIndemnityPer PaidClaim 180,000 105,667 395,833 102,091 0 38,840 38,000 80,033 35,917 054332211002010010.0%0.0%6.7%0.0%3.3%0.0%0.0%3.3% 0 0 67,717 0 75,000 0 0 12,400 0 0 135,434 0 75,000 0 0 12,4000.0%0.0%3.4%0.0%1.9%0.0%0.0%0.3% 0 2,768 0 18,163 47,763 0 245 10,00011040300.0%100.0% 0 134,707 0 4,041,2140.0%100.0% 0 13,55634
Top Ten Alleged Errors or OmissionPrior Ten Years35
Lack of Follow-upAverage Indemnity & Expense20122013Avg Indemnity 545,063 100,000Avg Loss Expense 12,298 20,6012014 0 02015201620172018 21,328 83,000 422,742 0 3,082 7,930 21,371 7,164201920202021 0 154,400 38,000 37,080 2,162 2,148Lack of Follow-UpClosed ClaimsAll ClaimsPaid ClaimsUnpaid 844201850520193032020171072021725
OtherAverage Indemnity & Expense2012Avg Indemnity 96,856Avg Loss Expense 9,6762013 31,095 2,234201420152016 78,170 163,208 214,749 26,644 7,785 22,8152017 2,250 6342018 234,167 35,4612019 8,071 3,96220178132018537201933720202021 675,001 180,000 33,140 9,470OtherClosed ClaimsAll ClaimsPaid ClaimsUnpaid 820201731420217112
Failure to Know/Properly Apply LawAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 155,900 22,268 64,275 199,625 86,960 311,375 131,701 72,164 251,912 102,091Avg Loss Expense 36,119 6,452 46,633 43,061 10,455 11,385 55,507 7,274 28,423 27,639Failure to Know/Properly Apply LawClosed ClaimsAll ClaimsPaid ClaimsUnpaid 02520171679201818992019734202015782021945
Failure to Know/Properly Apply LawAverage Indemnity & Expense2012Avg Indemnity 9,167Avg Loss Expense 2,9372013201420152016 20,000 29,667 137,500 17,000 5,610 18,503 76,419 17,6872017 0 1,702201820192020 55,000 42,750 122,375 78,959 31,174 27,3652021 0 0Failure to Know/Properly Apply LawClosed ClaimsAll ClaimsPaid ClaimsUnpaid 320185142019945202013492021505
Failure to Ascertain Deadline CorrectlyAverage Indemnity & Expense2012Avg Indemnity 461,315Avg Loss Expense 13,2502013 0 15420142015201620172018201920202021 360,000 222,738 50,833 171,103 81,386 65,532 95,333 80,033 8,924 3,957 8,423 23,501 9,970 4,189 8,831 4,156Failure to Ascertain Deadline CorrectlyClosed ClaimsAll ClaimsPaid ClaimsUnpaid 9820171192201814772019642202011652021624
Planning or Strategy ErrorAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 85,753 172,045 252,229 211,250 224,000 98,298 175,180 932,100 178,193 105,667Avg Loss Expense 22,466 4,236 53,307 55,241 20,537 16,568 42,037 12,712 17,779 10,874Planning or Strategy ErrorClosed ClaimsAll ClaimsPaid ClaimsUnpaid 620172591620181721520191459202096320211138
Failure to Obtain Client ConsentAverage Indemnity & Expense2012Avg Indemnity 30,000Avg Loss Expense 4,6032013 0 4,30520142015201620172018 0 350,000 50,000 2,000,000 460,161 5,837 10,555 18,953 25,142 21,6712019 0 45620202021 303,929 75,000 115,556 47,763Failure to Obtain Client ConsentClosed ClaimsAll ClaimsAll ClaimsUnpaid 2018615201920220208712021211
Failure to Obtain Client ConsentAverage Indemnity & Expense201220132014201520162017Avg Indemnity 19,233 45,000 80,625 159,976 250,879 7,500Avg Loss Expense 1,764 0 30,538 35,602 2,377 02018201920202021 46,795 226,873 22,500 35,917 21,688 3,886 2,385 2,589Failure to Obtain Client ConsentClosed ClaimsAll ClaimsPaid ClaimsUnpaid 112018642201932120208442021633
Inadequate InvestigationAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 94,045 375,000 202,264 75,000 444,125 30,400 26,213 64,224 49,450 395,833Avg Loss Expense 86,762 402 39,950 24,396 29,908 21,250 25,567 30,083 14,755 31,819Inadequate InvestigationClosed ClaimsAll ClaimsPaid ClaimsUnpaid 710552018114720191028202083520211064
Failure to File Documents with No DeadlineAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 0 42,589 37,500 44,500 95,000 81,022 22,147 26,810 66,605 38,840Avg Loss Expense 53,713 6,228 938 10,983 10,528 22,485 0 0 37,626 36,142Failure to file Documents with No DeadlineClosed ClaimsAll ClaimsPaid ClaimsUnpaid 422018330201911020207432021752
Method of Claim DispositionPrior 10 Years46
Indemnity Analysis, 2012-2021Claim DispositionBefore Trial Or HearingBefore Filing Suit Or DemandingHearingClaim Or Suit AbandonedAfter AppealAfter Judgment, Before AppealAfter Trial Or Hearing, BeforeJudgmentDuring Trial Or HearingDuring AppealDuring Review PanelTotalAverageAll Number Percent IndemnityClosedof Paid of PaidPer PaidClaimsClaimsClamsClaim73826456.8% 192,393645132463718711640.2%0.2%0.2%1.3% 124,756 6,500 25,000 106,43319171061,6501410.2%0.9%0.2% 229,925 460,875 348,110465100.0%47Percent ofTotalTotalIndemnity Indemnity 50,791,69565.8%AverageLossExpense,AllClosedClaims 34,278 23,329,397 6,500 25,000 638,59830.2%0.0%0.0%0.8% 4,407 3,083 58,812 51,823 229,925 1,843,499 348,110 0 166,049 77,212,7240.3%2.4%0.5%0.0%100.0% 20,593 74,041 36,639 12,654 21,371
Indemnity Analysis, 2021AllClosedClaim DispositionClaimsBefore Filing Suit Or Demanding Hearing51Before Trial Or Hearing35Claim Or Suit Abandoned11After Appeal3After Judgment, Before Appeal3During Review Panel1Total104Numberof PaidClaims1514001030TotalIndemnity 1,371,814 2,649,400 0 0 20,000 0 4,041,21448Percentof demnity Percent ofPer PaidTotalClaim Indemnity 91,45433.9% 189,24365.6% 00.0% 00.0% 20,0000.5% 00.0% 134,707100.0%AverageLossExpense,AllClosedClaims 3,729 26,321 2,578 36,403 53,602 0 13,556
Yearly Trends inMethod of Claim DispositionPrior Ten Years49
Before Filing Suit or Demanding HearingAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 221,950 171,781 176,933 83,314 111,386 88,112 78,599 66,598 160,853 91,454Avg Loss Expense 5,060 2,567 11,388 4,699 1,284 6,280 4,800 4,024 1,550 3,729Before Filing Suit or Demanding HearingClosed ClaimsAll ClaimsPaid ClaimsUnpaid 1511536
After Judgement, Before AppealAverage Indemnity & ExpenseAvg Indemnity2012 02013 11,5002014 02015 02016 196,3352017 02018 02019 020202021 18,094 20,000After Judgement, Before AppealClosed ClaimsAll ClaimsPaid ClaimsUnpaid 2018202201930320204132021312
Before Trial or HearingAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 168,186 127,165 152,265 197,745 146,832 247,204 145,978 371,357 197,522 189,243Avg Loss Expense 44,102 3,423 50,470 48,454 24,178 39,997 44,167 24,757 54,655 26,321Before Trial or HearingClosed ClaimsAll ClaimsPaid ClaimsUnpaid 62021351421
After AppealAverage Indemnity & Expense2012201320142015201620172018201920202021Avg Indemnity 0 0 0 0 0 0 25,000 0 0 0Avg Loss Expense 17,604 19,091 66,539 35,975 36,440 39,943 106,209 65,034 89,642 36,403After AppealClosed ClaimsAll ClaimsPaid ClaimsUnpaid 20189182019
were constructed from data collected by the Department of Commerce and Insurance as required by Section 383.077 RSMo. The premium and loss data, obtained from the Missouri Page 19 Supplement to the companies' annual statements, are presented in the final section. In 2021, the loss ratio for legal malpractice insurance in Missouri was 48 percent.
