4382 Are You Getting the Most from Your Member Benefits? Practice Resources and Software

The Florida Bar Continuing Legal Education Committee and the Prepaid Legal Services Committee present

Legal Services Plans and Legal Expense Insurance: Opportunities for Florida Attorneys to Deliver Legal Services to Floridians in the Post- COVID-19 World

COURSE CLASSIFICATION: INTERMEDIATE

Course No. 4382 Are you getting the most from your Member Benefits? Practice Resources and Software

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Visit www.floridabar.org/memberbenefits for a complete list of member benefits FEATURED TITLES WINTER 2021

NEW EDITION Florida Dissolution of Marriage FOURTEENTH EDITION © 2020 This publication details the dissolution of marriage process, from interview through temporary relief, and discovery to final judgment. Key areas covered include parental responsibility, child support, alimony, equitable distribution, and attorneys’ fees. In addition to updated statutes, rules, case law, and new forms and checklists, the latest edition includes: • Discussions of updated laws: Parental Kidnapping Prevention Act, Tax Cuts and Jobs Act, and Collaborative Law Process Act • Review of Fla. Supreme Court rulings: Full Faith and Credit, “presumption of legitimacy,” fee assessments, and training, ethical conduct, and discipline of parenting coordinators • Details about parenting plans and timesharing benefits and requirements • Discussion about confidentiality of mediation and immunity of parenting coordinators • Review of SNAP and reemployment regulation updates • Review of pending appeals, particularly of alimony factual findings $350 I Hardbound, Pub. #22865, ISBN 9781522190233 I eISBN 9781522190240

NEW EDITION Florida Real Property Complex Transactions TENTH EDITION © 2020 From sales and leases of commercial property to subdivision development to mobile home park conversions, Florida Real Property Complex Transactions provides practical, step-by-step guidance for negotiating and drafting the necessary documents to complete these multifaceted transactions. An invaluable asset for any lawyer handling real estate transactions, the manual contains countless sample provisions and forms, along with checklists and practice pointers to ensure that all significant issues have been considered. Highlights of the new edition include new or updated content covering: • Drafting and negotiating purchase and sale contracts • The sustainability of brick-and-mortar shopping centers • Hotels, motels, restaurants, and marinas—including a new sample hotel purchase and sale agreement • The 2019 Amendments to the Community Planning Act, expanding the ability of local governments to adopt small-scale comprehensive plan amendments • The option to extend provision for a lease • Ground, office, and retail leases • Environmental issues—all-new chapter • Issuance of the Treasury Department’s and IRS’s Notice 2020-23, providing real estate investors with some relief from the threat that the COVID-19 pandemic crisis has presented for real estate investors seeking to complete 1031 exchange transactions within the deadlines provided in IRC § 1031(a)(3) $366 I Hardbound, Pub. #22915, ISBN 9781663311757 I eISBN 9781663311764 For a full description of these titles or to order, go to THE FLORIDA BAR LEGAL PUBLICATIONS lexisnexis.com/publicist or call 800.533.1637 NEW EDITION and mention Publicist to reference this literature.

Florida Juvenile Law and Practice SIXTEENTH EDITION © 2020 ADMIRALTY LAW PUB. # ISBN eISBN PRICE Florida Juvenile Law and Practice provides comprehensive coverage of all areas of juvenile practice, including Florida Maritime Law and Practice, 6th Ed. (2019) 22897 9781522175094 9781522175100 $197 delinquency, dependency and termination of parental rights, and families and children in need of services. Authoritative and insightful analysis from authors that include members of the Juvenile Court Rules Committee, BUSINESS LAW PUB. # assistant state attorneys, assistant public defenders, attorneys representing the Department of Children and Business Litigation in Florida, 10th Ed. (2019) 22775 9781522169567 9781522169574 $303 Family Services and the Department of Juvenile Justice, and private attorneys make this book an essential reference for those practicing in this area. Creditors’ and Debtors’ Practice in Florida, 7th Ed. (2019) 22802 9781522176923 9781522176930 $224 In addition to revised statutes, rules, and new case law, the new Sixteenth Edition features updated discussions covering: Florida Corporate Practice, 9th Ed. (2019) 22799 9781522188711 9781522188728 $303 • Adoption Florida Small Business Practice, 10th Ed. (2018) 22826 9781522158462 9781522158479 $350 • Jurisdiction ESTATE PLANNING AND ADMINISTRATION PUB. # • Termination of parental rights Administration of Trusts in Florida, 10th Ed. (2019) 22748 9781522178071 9781522178088 $272 $209 I Hardbound, Pub. #22808, ISBN 9781663303394 I eISBN 9781663303400 Asset Protection in Florida, 6th Ed. (2020) NEW EDITION! 22680 9781522190448 9781522190455 $224 Introducing The Florida Bar Colorbook Collection Basic Estate Planning in Florida, 10th Ed. (2020) 22894 9781522194439 9781522194446 $224 Florida Colorbooks were designed to help you build your practice library with affordable, The Florida Bar Probate System, 5th Ed. (2018) 22871 9781632846129 n/a $557 foundational resources—including both the legislative and secondary materials needed Florida Guardianship Practice, 10th Ed. (2018) 22829 9781522166641 9781522165392 $272 in key practice areas. Titles are available as convenient softbound desk books and ever- accessible eBooks. Kane’s Florida Will and Trust Forms Manual & Automated Forms Version Combo 22877 9781422454626 n/a $1,272

Kane’s Florida Will and Trust Forms Manual, 4th Ed. with 2019 Deskbook 22877 9780820587547 9780327183099 $816 Florida Commercial Law (Goldbook) $437* Kane’s Florida Will and Trust Deskbook, 2019 Ed. 22877 9781522189350 n/a $313 The Goldbook covers the relevant statutes for commercial transactions, consumer credit transactions and consumer contracts. Included are the Uniform Trade Secrets Act and the Kane’s Florida Will and Trust Automated Forms, Downloadable Content (2019) 22877 9781522160069 n/a $845 Uniform Commercial Real Estate Receivership Act, along with complementary practical Litigation Under Florida Probate Code, 12th Ed. (2020) 22778 9781522195313 9781522195320 $224 analysis to help inform your transactional work in this area. Practice Under Florida Probate Code, 10th Ed. (2020) 22811 9781522193043 9781522193050 $350 $149 I Softbound, Pub. #20041, ISBN 9781663300263 I eISBN 9781663300270 FAMILY LAW (see also TRIAL PRACTICE) PUB. # Florida Criminal Statutes and Rules (Graybook) Adoption, Paternity, and Other Florida Family Practice, 13th Ed. (2019) 22868 9781522187394 9781522187400 $224 The Graybook includes the full Crimes and Criminal Procedure & Corrections titles as well as the Rules of Criminal Procedure and related Drafting Marriage Contracts in Florida, 12th Ed. (2018) 22823 9781522160182 9781522160199 $224 material pertaining to other crimes found throughout the Florida Statutes, with expert analysis of how the courts have interpreted Florida Dissolution of Marriage, 14th Ed. (2020) NEW EDITION 22865 9781522190233 9781522190240 $350 Florida’s criminal procedure statutes. $230 Florida Family Law Case Summaries, 2019 Ed. 23170 9781522187547 9781522187554 $159 I Softbound, Pub. #20042, ISBN 9781663300287 I eISBN 9781663300294 $217* Florida Juvenile Law and Practice, 16th Ed. (2020) NEW EDITION 22808 9781663303394 9781663303400 $209 Florida Real Property Law (Bluebook) Florida Proceedings After Dissolution of Marriage, 14th Ed. (2020) 22744 9781522189527 9781522189534 $224 The Bluebook contains relevant state statutes and regulations addressing conveyances, recording, foreclosure, easements, title insurance and homeowners’ associations, as well as professional qualifications of real estate brokers, sales agents, appraisers and home inspectors. JURY INSTRUCTIONS PUB. # Practice material covers topics such as the pandemic and real property law, protecting tenants in foreclosure, mortgage fraud and Florida Standard Jury Instructions in Civil Cases, 3rd Ed. (2015) with 2020 Supp. 22838 9781632843852 9781632843869 $193 much more. Florida Standard Jury Instructions in Criminal Cases, 8th Ed. (2015) with 2020 Supp. 22856 9781632822710 9781632822727 $148 $149 I Softbound, Pub. #20043, ISBN 9781663300300 I eISBN 9781663300317 Florida Standard Jury Instructions: Civil Cases, Contract and Business Cases, 28284 9781632843876 9781632843883 $127 2nd Ed. (2015) with 2019 Supp. Florida Family Law (Yellowbook) REAL PROPERTY LAW PUB. # The Yellowbook comprises the entire Domestic Relations Title, as well as selected statutes addressing civil practice and procedure, public Florida Practitioner’s Guide®: Mortgage Foreclosure and Alternatives, NEW EDITION 22957 9781522196495 9781522196501 $141 health, social welfare and domestic violence. It also includes regulations of the Department of Children and Families. Practical content 11th Ed. (2020) is provided in areas where there has been significant new case law and tax effects, including alimony, assisted reproduction and surrogacy, Florida Condominium and Community Association Law, 4th Ed. (2018) 22805 9781522151302 9781522151319 $382 domestic violence injunctions, and child custody. Florida Construction Law and Practice, 9th Ed. (2018) 22820 9781522159667 9781522159674 $272 $159 I Softbound, Pub. #20045, ISBN 9781663300348 I eISBN 9781663300355 Florida Eminent Domain Practice and Procedure, 11th Ed. (2019) 22900 9781521184041 9781522184058 $287

Florida Civil Practice Law and Rules (Redbook) Florida Real Property Complex Transactions, 10th Ed. (2020) NEW EDITION 22915 9781663311757 9781663311764 $366 Florida CPLR Redbook contains the Florida Civil Practice & Procedure title and the Florida Rules of Civil Procedure, as well as related sections. Helpful practice material includes more than 40 selected civil procedure forms covering different aspects of the civil trial process, Florida Real Property Litigation, 9th Ed. (2018) 22754 9781522162643 9781522162650 $303 from pretrial motions and discovery through appellate briefs. Florida Real Property Sales Transactions, 10th Ed. (2020) 22918 9781522196365 9781522196372 $272 $149 I Softbound, Pub. #20044, ISBN 9781663300324 I eISBN 9781663300331 *Denotes eBook price, different from print publication price. Continued on next page REAL PROPERTY LAW (continued) PUB. # ISBN eISBN PRICE

Foreclosures in Florida, 2nd Ed. (2008) with 2018 Supp. 22994 9781422453292 9780327173595 $162

Florida Real Property Title Examination and Insurance, 9th Ed. (2019) 22874 9781522169956 9781522169963 $272 RULES OF PROCEDURE

Florida Criminal, Traffic Court, Appellate Rules of Procedure, and Rules of 22835 9781522192572 9781522192589 $93 Judicial Administration, 2020 Ed.

Florida Family Law Rules and Statutes, and Rules of Judicial Administration, 2020 Ed. 22751 9781522176381 9781522176398 $140

Florida Probate Rules and Statutes, Rules of Civil Procedure, and Rules of Judicial 22736 9781522192534 9781522192541 $77 Administration, 2020 Ed.

Florida Civil, Judicial, Small Claims, and Appellate Rules with Florida Evidence Code, 2020 Ed. 22728 9781522192510 9781522192527 $93

Florida Rules of Juvenile Procedure and Rules of Judicial Administration, 2020 Ed. 22763 9781522192558 9781522192565 $82

TRIAL PRACTICE PUB. #

Evidence in Florida, 11th Ed. (2018) 22832 9781522139935 9781522139942 $387

Florida Practitioner’s Guide®: Florida Civil Trial Preparation, 9th Ed. (2019) 22830 9781522171300 9781522171317 $241

Florida Administrative Practice, 12th Ed. (2019) 22781 9781522173373 9781522173380 $272

Florida Appellate Practice, 11th Ed. (2020) 22817 9781522192053 9781522192060 $258

Florida Automobile Insurance Law, 11th Ed. (2020) 22784 9781522193029 9781522193036 $224

Florida Civil Practice Before Trial, 13th Ed. (2019) 22924 9781522186281 9781522186298 $303

Florida Civil Trial Practice, 12th Ed. (2019) 22787 9781522177012 9781522177029 $224

PRIMARY LAW PUB. #

NEW SERIES FLORIDA COLORBOOK COLLECTION These new portable legislative references provide quick access to up-to-date, relevant Florida statutes and rules for key practice areas. In addition to carefully curated statutory materials, each title includes a collection of practical, analytical content, related to the practice area.

Florida Commercial Law (Goldbook) 20041 9781663300263 9781663300270 $149

Florida Criminal Statutes and Rules (Graybook) 20042 9781663300287 9781663300294 $159

Florida Real Property (Bluebook) 20043 9781663300300 9781663300317 $149

Florida Family Law Statutes (Yellowbook) 20045 9781663300348 9781663300355 $159

Florida Civil Practice Law and Rules (Redbook) 20044 9781663300324 9781663300331 $149

For a full description of these titles or to order, go to lexisnexis.com/publicist or call 800.533.1637 and mention Publicist to reference this literature.

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LexisNexis and the Knowledge Burst logo are registered trademarks of RELX Inc. Florida Practitioner’s Guide is a registered trademark of The Florida Bar. Other products or services may be trademarks or registered trademarks of their respective companies. © 2021 LexisNexis. OFF04767-0 0121 Common Questions About CLER

1. What is CLER? CLER, or Continuing Legal Education Requirement, was adopted by the Supreme Court of Florida in 1988 and requires all members of The Florida Bar to continue their legal education.

2. What is the requirement? Over a 3 year period, each member must complete 33 hours, 5 of which are in the area of ethics, professionalism, substance abuse, or mental illness awareness, and 3 hours in technology.

3. Where may I find information on CLER? Rule 6-10 of the Rules Regulating The Florida Bar sets out the requirement. All the rules may be found at www.floridabar.org/rules.

4. Who administers the CLER program? Day-to-day administration is the responsibility of the Legal Specialization and Education Department of The Florida Bar. The program is directly supervised by the Board of Legal Specialization and Education (BLSE) and all policy decisions must ultimately be approved by the Board of Governors.

5. How often and by when do I need to report compliance? Members are required to report CLE hours earned every three years. Each member is assigned a three year reporting cycle. You may find your reporting date by logging in to your member portal at member.floridabar.org.

6. Will I receive notice advising me that my reporting period is upcoming? Four months prior to the end of your reporting cycle, you will receive a CLER Reporting Affidavit, if you still lack hours.

7. What happens if I am late or do not complete the required hours? You run the risk of being deemed a delinquent member which prohibits you from engaging in the practice of Florida law.

8. Will I receive any other information about my reporting cycle? Yes, you will receive reminders prior to the end of your reporting cycle, if you have not yet completed your hours.

9. Are there any exemptions from CLER? Rule 6-10.3(c) lists all valid exemptions. They are: 1) Active military service 2) Undue hardship (upon approval by the BLSE) 3) Nonresident membership (see rule for details) 4) Full-time federal judiciary 5) Justices of the Supreme Court of Florida and judges of district, circuit and county courts 6) Inactive members of The Florida Bar 10. Other than attending approved CLE courses, how may I earn credit hours? Credit may be earned by: 1) Lecturing at an approved CLE program 2) Serving as a workshop leader or panel member 3) Writing and publishing in a professional publication or journal 4) Teaching (graduate law or law school courses) 5) University attendance (graduate law or law school courses)

11. How do I submit various activities for credit evaluation? Applications for credit may be found on our website, www.floridabar.org.

12. How are attendance hours posted on my CLER record? You must post your credits online by logging in to your member portal at member.floridabar.org.

13. How long does it take for hours to be posted to my CLER record? When you post your CLE credit online, your record will be automatically updated and you will be able to see your current CLE hours and reporting period.

14. How may I find information on programs sponsored by The Florida Bar? You may wish to visit our website, www.floridabar.org/cle, or refer to The Florida Bar News. You may also call CLE Registrations at 850/561-5831.

15. If I accumulate more than 30 hours, may I use the excess for my next reporting cycle? Excess hours may not be carried forward. The standing policies of the BLSE, as approved by the Supreme Court of Florida specifically state in 6.03(b): ... CLER credit may not be counted for more than one reporting period and may not be carried forward to subsequent reporting periods.

16. Will out-of-state CLE hours count toward CLER? Courses approved by other state bars are generally acceptable for use toward satisfying CLER.

17. If I have questions, whom do I call? You may call the Legal Specialization and Education Department of The Florida Bar at 850/561- 5842.

The course materials in this booklet were prepared for use by the registrants attending our Continuing Legal Education course during the lectures and later in their offices.

The Florida Bar is indebted to the members of the Steering Committee, the lecturers and authors for their donations of time and talent, but does not have an official view of their work products.

CLER CREDIT (Maximum 3.5 hours)

General ...... 3.5 hours

Seminar credit may be applied to satisfy both CLER and Board Certification requirements in the amounts specified above, not to exceed the maximum credit. Refer to Chapter 6, Rules Regulating The Florida Bar, see the CLE link at www.floridabar.org for more information about the CLER and Certification Requirements.

Prior to your CLER reporting date you will be sent a Reporting Affidavit (must be returned by your CLER reporting date). You are encouraged to maintain records of your CLE hours.

CLE CREDIT IS NOT AWARDED FOR THE PURCHASE OF THE COURSE BOOK ONLY.

CLE COMMITTEE MISSION STATEMENT

The mission of the Continuing Legal Education Committee is to assist the members of The Florida Bar in their continuing legal education and to facilitate the production and delivery of quality CLE programs and publications for the benefit of Bar members in coordination with the Sections, Committees and Staff of The Florida Bar and others who participate in the CLE process.

COURSE CLASSIFICATION

The Steering Committee for this course has determined its content to be INTERMEDIATE.

PREPAID LEGAL SERVICES COMMITTEE

John Paul Joseph, St. Petersburg — Chair Kelli Elizabeth Lueckert, Green Cove Springs — Vice Chair John Schaefer, Safety Harbor — Vice Chair

FACULTY & STEERING COMMITTEE

Kelli Elizabeth Lueckert, Green Cove Springs — Program Co-Chair Howard M. Rosenblatt, Gainesville — Program Co-Chair

Robert H. Jerry, II, Gainesville John Schaefer, Safety Harbor

CLE COMMITTEE

Patricia Dawson, Tampa — Chair Terry L. Hill — Director, Programs Division

For a complete list of Member Services visit our web site at www.floridabar.org.

LECTURE PROGRAM

1:00 p.m. – 1:05 p.m. Opening Remarks Kelli E. Lueckert

1:05 p.m. – 2:05 p.m. Fundamentals and Practical Tips on the Creation of a Successful Chapter 9 Legal Services Plan John Schaefer, Safety Harbor

2:05 p.m. – 3:05 p.m. Legal Insurance: Practice and Public Service Opportunities (This program explains legal insurance, what it is and how it works, and what it offers to consumers and lawyers alike. Topics discussed will include how legal insurance can improve access to legal services while simultaneously creating practice opportunities.) Howard M. Rosenblatt, Gainesville Robert H. Jerry, II, Gainesville

3:05 p.m. – 3:15 p.m. Break

3:15 p.m. – 4:00 p.m. Overview of the “Legal Expense Insurance Act” [Chapter 642, Florida Statutes] (This portion of the presentation will address the requirements to organize a Chapter 642 Company; the role of The Florida Bar in such process; the administrative rules implementing Chapter 642; and, the distinct differences vis a Chapter 9 Plan.) John Schaefer, Safety Harbor

iii

TABLE OF CONTENTS

FUNDAMENTALS AND PRACTICAL TIPS ON THE CREATION OF A SUCCESSFUL CHAPTER 9 LEGAL SERVICES PLAN John Schaefer, Safety Harbor

I. Overview of the Lecture Outline ...... 1.1 II. Introduction to Chapter 9 Plans ...... 1.2 III. Chapter 9 Definitions ...... 1.3 IV. Chapter 9 Regulation ...... 1.4 V. Benefits of Becoming a Chapter 9 Managing Attorney...... 1.6 VI. How to Successfully Complete The 2012 Committee Forms ...... 1.8 VII. Relevant Marketing Issues to be Considered in the Creation of Chapter 9 Plan ...... 1.17 VIII. Relevant Administration Issues to be Considered in the Operation of a Chapter 9 Plan ...... 1.19 IX. How to Make Chapter 9 Work for You ...... 1.21 X. Conclusion ...... 1.24 XI. Appendix ...... 1.25

LEGAL INSURANCE: PRACTICE AND PUBLIC SERVICE OPPORTUNITIES (This program explains legal insurance, what it is and how it works, and what it offers to consumers and lawyers alike. Topics discussed will include how legal insurance can improve access to legal services while simultaneously creating practice opportunities.) Howard M. Rosenblatt, Gainesville Robert H. Jerry, II, Gainesville

I. Legal Insurance in Florida – Overview ...... 2.1

OVERVIEW OF THE “LEGAL EXPENSE INSURANCE ACT” [CHAPTER 642, FLORIDA STATUTES] (This portion of the presentation will address the requirements to organize a Chapter 642 Company; the role of The Florida Bar in such process; the administrative rules implementing Chapter 642; and, the distinct differences vis a Chapter 9 Plan.) John Schaefer, Safety Harbor

I. Overview of the Lecture Outline ...... 3.1 II. Introduction to Chapter 642 ...... 3.2 III. General Requirements to Organize and operate a Chapter 642 Company ...... 3.4 IV. Role of The Florida Bar in the Chapter 642 Application Process ...... 3.5 V. Administrative Rules Implementing Chapter 642 ...... 3.5 VI. And Justice for All, Inc., v. Florida Department of Insurance, 799 So.2d 1076 (Fla. 1st DCA 2001) ...... 3.6 VII. Chapter 642 Vs. Chapter 9: a Comparison ...... 3.8 VIII. Conclusion ...... 3.9 IX. Appendix ...... 3.10

AUTHORS/LECTURERS

BOB JERRY is Dean-Emeritus, and Levin Mabie and Levin Professor-Emeritus, at the University of Florida Levin College of Law. He is also the Floyd R. Gibson Missouri Endowed Professor-Emeritus at the University of Missouri School of Law. He is the author of numerous books, articles, and essays in the field of insurance law, and he is the 2020 recipient of the ABA Tort, Trial, and Insurance Practice Section’s Robert B. McKay Law Professor Award.

HOWARD ROSENBLATT is a former school teacher, cantor, insurance agent and financial planner. He graduated from the Levin College of Law in !981, but continued his insurance and financial services career until 2014. He opened his law practice in 1983 and practices in the areas of Estate Planning, Elder Law and Probate. He is past President of Florida Lawyers Legal Insurance Corporation (FLLIC) and former chair of The Florida Bar’s Prepaid Legal Insurance Committee. While President of FLLIC, they formed a legal insurance company. He holds the following professional designations: CLU, ChFC, LUTCF, and AEP. He was honored by The Florida Bar in 2019 with the Pro Bono Award for the 8th Circuit.

JOHN SCHAEFER received his B.A., magna cum laude, in mathematics, from Niagara University in 1977 and his J.D. from Stetson University College of Law in 1980. Mr. Schaefer was admitted to The Florida Bar in 1980 and has been, for his entire legal career, engaged in the private practice of law. In 1983, Mr. Schaefer, along with his law partners, Janet L. Wirth and Judy L. Wirth, co-founded the law firm of Schaefer, Wirth & Wirth, of which he has served, since inception, as its Managing General Partner. Schaefer, Wirth & Wirth, having offices since November, 2001, located in Safety Harbor, Florida, is a general civil practice law firm celebrating its 38th anniversary in practice on April 1, 2021. Mr. Schaefer practices primarily in the areas of wills & trusts, elder law, and probate & estates, including probate litigation, and has earned, and presently holds, the following Martindale-Hubbell Peer Review Rating: AV Preeminent 5.0 out of 5. Since 1984, Mr. Schaefer, and the principals of Schaefer, Wirth & Wirth, have all had extensive and significant experience in rendering legal services to members of various and sundry “legal services plans” (“Plans”) in the State of Florida, in general, and specializing in the delivery of telephone access legal services to members of these Plans, in particular. With respect to his volunteer work with The Florida Bar relevant to the establishment, operation, and regulation of Plans, Mr. Schaefer first began his service as a member of the Prepaid Legal Services Committee of The Florida Bar (the “Committee”) during the 1985-86 Bar Year and then remained an active member of the Committee for all times continuously thereafter, thru the 2004-05 Bar Year, until he became term-limited by virtue of Standing Board Rule 5.20(c), effective July 1, 2005. Thereafter, at the conclusion of his 3-year term-limited imposed hiatus, Mr. Schaefer once again became a member of the Committee, effective July 1, 2008, and remained a Committee member for all times continuously thereafter, thru the 2013-14 Bar Year, until he, once again, became term-limited, effective July 1, 2014. Thereafter, at the conclusion of his second 3-year term- limited imposed hiatus, Mr. Schaefer once again became a member of the Committee, effective July 1, 2017; and has thereafter served as Vice Chair of the Committee during the 2018-2019 and 2020-2021 Bar Years; and, will, once again, serve as Vice Chair of the Committee during the upcoming 2021-2022 Bar Year. With respect to his tenure on the Committee, Mr. Schaefer has, throughout the years, held several leadership roles in, and provided various and sundry service to, the Committee; and, including, but not limited to, being a 9-time Chair of the Committee [1988- 89, 1989-90, 1998-99, 1999-2000, 2008-09, 2009-10, 2012-13, 2013-14, and 2019-20 Bar Years]; serving as Chair of the Chapter 9 Plan Application Packet Subcommittee during the 2010-11 and v

2011-12 Bar Years; serving as Co-Chair of the Rules Revision Subcommittee [of Chapter 9, Rules Regulating The Florida Bar] during the 1996-97 and 1997-98 Bar Years; authoring “Chapter 9 Legal Services Plans: An Opportunity for Florida Attorneys to Deliver Legal Services to Floridians in the Post-COVID-19 World”, published in The Florida Bar Journal, March/April 2021, p. 42; authoring “A New Day Has Dawned for Legal Services Plans in Florida”, published in The Florida Bar Journal, November 1998, p. 76; authoring “Access to Justice: The Origins of the Legal Services Plan Concept”, published in The Florida Bar Journal, May 1989, p. 33; and, lecturing previously a total of some seventeen (17) times at the Committee’s CLE annual seminar held during the June Annual Meeting of The Florida Bar [1998-2001, inclusive; 2004; 2007-2014, inclusive; and, 2016-2019, inclusive].

vi FUNDAMENTALS AND PRACTICAL TIPS ON THE CREATION OF A SUCCESSFUL CHAPTER 9 LEGAL SERVICES PLAN

John Schaefer, Safety Harbor

FUNDAMENTALS AND PRACTICAL TIPS ON THE CREATION OF A SUCCESSFUL CHAPTER 9 LEGAL SERVICES PLAN

John Schaefer, Esq. Schaefer, Wirth & Wirth Safety Harbor, Florida

I. OVERVIEW OF LECTURE OUTLINE

At the outset, although it is now some 51 years since the Florida

Supreme Court, in 1970, first created a rule permitting the operation of legal services plans in the State of Florida, this writer would opine that Florida attorneys in private practice have generally been unaware of, and oblivious to, the

existence of Chapter 9 of the Rules Regulating The Florida Bar and the

benefits resulting therefrom as one means by which to expand their overall

private client base.

As such, this writer shall endeavor in this lecture outline to encourage Florida attorneys in private practice to give due and serious

consideration to the many and diverse opportunities afforded in Chapter 9 upon

describing and discussing the following described topics of relevance, to-wit:

A. Introduction to Chapter 9 Plans [See paragraph II, below].

B. Chapter 9 Definitions [See paragraph III, below].

C. Chapter 9 Regulation [See paragraph IV, below].

D. Benefits of Becoming a Chapter 9 Managing Attorney [See paragraph V, below].

E. Relevant Issues to be Considered in Crafting a Chapter 9 Plan: 1. How to Successfully Complete the 2012 Committee Forms [See paragraph VI, below].

1.1 2. Relevant Marketing Issues to be considered in the Creation of a Chapter 9 Plan [See paragraph VII, below].

3. Relevant Administration Issues to be considered in the Operation of a Chapter 9 Plan [See paragraph VIII, below].

4. How to Make Chapter 9 Work for You: A Few Final Issues to Consider and Contemplate Before Embarking upon the Crafting of Your [Successful] Chapter 9 Plan [See paragraph IX, below].

II. INTRODUCTION TO CHAPTER 9 PLANS

A. What is a “Chapter 9 Plan”?

Simply, a “Chapter 9 Plan” is a “legal services plan”

(“Plan”1) governed by and under the rules and regulations of Chapter 92.

B. Rule 9-1.2 Statement of Policy and Purposes

Upon passage of Chapter 9, as amended, effective April 3,

1998, the Board of Governors of The Florida Bar (the “Board”) expressly

codified the longstanding public policy position of The Florida Bar (the “Bar”)

in support of the concept of Plans upon adopting Rule 9-1.2, which provides, in

relevant part, as follows:

“Every citizen of this state should have access to the legal system. . . . To this end, it is the policy of The Florida Bar to support the concept and to actively encourage the establishment, operation, growth, and development of legal services plans as 1 means of increasing a person’s ability to obtain legal services at an affordable cost in order to have the opportunity to better gain access to the legal system (emphasis supplied).”

1 In brief, a Plan, by its very nature, serves as a conduit by and between Plan members and Plan attorneys whereby Plan members, simply by virtue of the existence of the Plan, have an increased ability to obtain legal services in order to, in turn, have the opportunity to better gain access in and to the legal system. 2 Please kindly note that a discussion relative to other methodologies serving to permit Floridians to have an increased ability to obtain legal services in Florida -- and, i.e., “Lawyer Referral Services” as authorized by and under Chapter 8 of the Rules; “Qualifying Providers” as authorized by and under Rule 4-7.22 of the Rules; and, “Legal Expense Insurance Corporations” as governed by and under Chapter 642, Florida Statutes -- is beyond the scope of this lecture presentation.

1.2 C. Prepaid Legal Services Committee

Finally, the Prepaid Legal Services Committee (the

“Committee”3) is the body expressly entrusted with the responsibility to ensure

that Plans submitted by members in good standing of the Bar are in full and

complete compliance with the rules and regulations of Chapter 94.

III. CHAPTER 9 DEFINITIONS

Rule 9-1.3 Definitions provides as follows:

“Unless otherwise described in this chapter, the following terms shall have the following described meanings:

(a) Bar. The bar shall mean The Florida Bar.

(b) Board. The board shall mean the Board of Governors of The Florida Bar.

(d) Group. Group shall mean an organization of 2 or more persons whose individual members are identifiable in terms of some common interest or affinity. Examples of groups shall include, but not be limited to, the following5:

(1) churches; (2) educational institutions; (3) credit unions; (4) employing units; and (5) associations.

(e) Legal Services Plan. Legal services plan shall mean an arrangement whereby a sponsor contracts directly with a managing attorney for the provision of legal services to its members, hereinafter referred to as a plan. Lawyer referral services and legal aid societies shall be specifically excepted from this definition.

3 Being a Public Service Standing Committee first created by the Board in 1974. 4 As of January 1, 2021, the Committee had oversight responsibility of some 15 approved Chapter 9 Plans. 5 Being generally referred to, historically, as the “Traditional Groups”.

1.3 (f) Managing Attorney. Managing attorney shall mean a member in good standing of The Florida Bar who shall be the person responsible to the bar for the proper conduct and operation of a plan.

(g) Plan Attorney. Plan attorney shall mean a member in good standing of The Florida Bar who, upon contracting in writing directly with a managing attorney, shall provide legal services to plan participants under a plan.

(h) Plan Participant. Plan participant shall mean a member of a sponsor eligible to receive legal services under a plan.

(i) Sponsor. Sponsor shall mean a group that provides a plan for the benefit of its members (emphasis supplied).”

IV. CHAPTER 9 REGULATION

A. General Requirements to Establish a Chapter 9 Plan

In general, the requirements to establish a Chapter 9 Plan

are described in Rule 9-2.

1. Rule 9-2.1 provides that a Managing Attorney shall

not be permitted to operate a Chapter 9 Plan in the State of Florida without first

obtaining approval therefor by the Board.

2. Rule 9-2.1 further provides that a Managing

Attorney seeking such approval of a Chapter 9 Plan shall file with the Committee

a Plan Application pursuant to the requirements of Chapter 9.

3. Rule 9-2.2 provides that a Plan Application shall consist of 5 items, as follows:

a. “Assurances by the Managing Attorney to the Bar” [Rule 9-2.2(a)]6.

b. “Agreement by and between Managing Attorney and Sponsor” [Rule 9-2.2(b)]7.

6 See paragraph VI. C., below. 7 See paragraph VI. D., below.

1.4 c. “Agreement by and between Managing Attorney and Plan Attorney” [Rule 9-2.2(c)].

d. “Other Documents” [Rule 9-2.2(d)].

e. “Application Fee” in the amount of $125.00 [Rule 9-2.2(e)].

B. Review of Plan Application by the Committee

Rule 9-2.3 provides the Plan Application described in Rule

9-2.2 shall be reviewed by both staff of the Bar and a Plan Review Subcommittee

of the Committee.

Upon the conclusion of such review, the Plan Review

Subcommittee shall provide a report of its findings to the Committee.

Thereupon, the Committee, in its discretion, may:

1. Approve the Plan Application [Rule 9-2.3(a)];

2. Approve the Plan Application conditionally upon

requiring the Managing Attorney to file with the Committee any requested

additional or corrective information (e.s.) [Rule 9-2.3(b)];

3. Require the Managing Attorney to file with the

Committee any requested additional or corrective information so that the

Committee may further review the Plan Application [Rule 9-2.3(c)]; or

4. Disapprove the Plan Application [Rule 9-2.3(d)].

C. Approval of Plan Application by the Board

Rule 9-2.4 provides that the Committee shall request the

Board to place the Committee’s recommendation for approval of a plan on the

agenda of a regularly scheduled meeting of the Board.

1.5 Upon consideration thereof, the Board, in its discretion, may either approve or disapprove the establishment of the plan.

Thereupon, the Committee, by and through staff of the Bar, shall advise the Managing Attorney of the Board’s action on the subject Plan.

D. Annual Renewal of Plans

In general, the requirements for the annual renewal of Plans are contained in Rule 9-2.5; and, which includes a renewal fee in the amount of

$25.00 [Rule 9-2.5(d)].

E. Revocation of Plans8

Rule 9-2.6 provides that the Board, in its discretion, may revoke any and all prior approval of a Plan if the Plan does not comply with any rule or regulation within the Rules Regulating The Florida Bar.

V. BENEFITS OF BECOMING A CHAPTER 9 MANAGING ATTORNEY

A. Primary [“Direct”] Benefits

1. Ability to tailor the type and nature of the legal services to be rendered to Plan Participants based upon the Managing Attorney’s then present-day law practice.

2. Creation of a “Chapter 9 Plan Built-In” private client base consisting of the Plan Participants of the Sponsor.

3. Potential to receive recurring monthly income [in the nature of a “retainer”] if the Managing Attorney adopts an economic model based upon a “per capita” payment arrangement in the creation of the Plan.

8 To the best knowledge of this writer [who first began service on the Committee in 1985], the Board has never once revoked the authority to operate an approved Chapter 9 Plan.

1.6 B. Secondary [“Spin-off”] Benefits

A Managing Attorney has the potential, as well, to generate

income in addition to the income derived directly from a Chapter 9 Plan in the

following ways:

1. Upon the rendering of legal services to Plan

Participants on legal matters not covered by and under the Chapter 9 Plan; and,

which such legal services may be billed at the Managing Attorney’s normal and

customary rates.

2. Upon a Plan Participant referring a member of the

Sponsor eligible to receive legal services under the Chapter 9 Plan to so join the

Plan and become a Plan Participant; and, thus increase the Managing Attorney’s

“Chapter 9 Plan Built-In” private client base.

3. Upon an increase in the Managing Attorney’s

“Personal” private client base as a result of the following:

a. A Plan Participant referring a “non-Plan

Participant member of Sponsor” for legal services to be rendered by the

Managing Attorney at the Managing Attorney’s normal and customary rates.

b. A Plan Participant referring a family member or friend for legal services to be rendered by the Managing Attorney at the Managing Attorney’s normal and customary rates.

1.7 VI. HOW TO SUCCESSFULLY COMPLETE THE 2012 COMMITTEE FORMS9

This writer shall now take the opportunity in this lecture outline to

provide commentary on a number of issues necessarily required to be considered

by a Managing Attorney in order to successfully complete the 2012 Committee

Forms, as follows:

A. “Request for Approval of Chapter 9 Plan Application by Managing Attorney”10

In brief, this form serves as a “checklist” for the Managing

Attorney in requesting approval of a Chapter 9 Plan.

B. “Chapter 9 Plan Identifying Information”

This form requires the furnishing of relevant identifying information vis all of the following:

1. Managing Attorney; 2. Sponsor; and, 3. Name of the Chapter 9 Legal Services Plan.

C. “Assurances by the Managing Attorney to The Florida Bar”11

1. In particular, Rule 9-2.2(a)(1) provides that a

Managing Attorney shall exercise every reasonable effort in order to assure that

the plan is operated in an ethical manner and is in compliance with the Rules12.

9 These forms may easily be accessed on The Florida Bar website [www.floridabar.org] upon, first, opening the “Public” tab in the “banner” line at the top; clicking on the “Prepaid Legal Services” link; and, then scrolling down to the heading entitled “CHAPTER 9 PLAN APPLICATION FORMS”, so listing thereunder each one of the ten (10) forms discussed below, as well as listing the 2 following described items, to-wit, “Chapter 9 Plan Application Packet Introduction” and “Application Packet Operating Rules”. 10 As authorized by and under Rule 9-2.1. 11 As required to be included in the Plan Application by and under Rule 9-2.2(a). 12 And, i.e, all the Rules; and, NOT simply the “Chapter 9 Rules”.

1.8 2. In addition, Rule 9-2.2(a)(2) provides that a

Managing Attorney shall have a professional liability insurance policy issued in favor of the Managing Attorney in an amount not less than $100,000.

3. Further, Rule 9-2.2(a)(3) provides that a Managing

Attorney shall take any and all steps reasonable and necessary in order to assure that there are a sufficient number of Plan Attorneys available in order to be able to adequately and properly perform the legal services to be provided under the plan.

4. Finally, Rule 9-2.2(a)(5) provides that a Managing

Attorney shall not implement any proposed change to be made in and to that certain “Agreement by and between Managing Attorney and Sponsor” (as so described in Rule 9-2.2(b)), without first obtaining the approval of the Board.

D. “Agreement by and between Managing Attorney and Sponsor”13 (the “Agreement”)

In brief, this Agreement is, for all intents and purposes by and under Florida law, the “Chapter 9 Plan”; and, the overall breadth and scope of which is limited only by the Managing Attorney’s own creativity and ingenuity.

Moreover, the ultimate economic success or failure of a

Chapter 9 Plan rests solely upon the ability of the Managing Attorney to negotiate favorably all of the relevant terms and conditions of the Agreement; and, including, but not limited to, the type and nature of the legal services to be so rendered and the total amount -- and, who [the Sponsor and/or the Plan

Participants] shall be ultimately responsible for the payment -- of the fees to be generated thereunder.

13 As required to be included in the Plan Application by and under Rule 9-2.2(b).

1.9 Now, in particular, this writer would highlight the following provisions of the Agreement, to-wit:

1. Introductory Paragraph

a. In re Managing Attorney14

COMMENT:

In response to another frequently asked

question, it is certainly permissible under Chapter 9 for a Florida attorney to,

simultaneously, act as a Managing Attorney of a Chapter 9 Plan and render legal

services to Plan Participants thereunder15.

2. RECITALS

a. THIRD “WHEREAS” Clause

“WHEREAS, Sponsor is eligible to provide the Plan for the benefit of its members by virtue of the fact that Sponsor meets the definitional requirements of Group for the following reason {provide reason}:”

1.) COMMENT:

In brief, this clause -- specifically

requiring the Managing Attorney to provide a reason why the “Sponsor meets the

definitional requirements of Group” -- highlights the core concept of Chapter 9.

14 In response to a frequently asked question, it is permissible under Chapter 9 ONLY for a “member in good standing of The Florida Bar (emphasis supplied)” [and, i.e., an individual] -- and NOT a law firm -- to act, and accept the responsibility, as a Managing Attorney of a Chapter 9 Plan. 15 Indeed, based upon the historical records of the Committee, there have been a number of Chapter 9 Plans approved by the Committee throughout the years wherein the Managing Attorney was the sole attorney involved in the operation of the subject approved Chapter 9 Plan.

1.10 As such, it is imperative that a

Managing Attorney fully and completely understand and appreciate the interrelationship by and between the terms Sponsor and Group prior to (1) embarking upon the identification of a prospective Sponsor and, then, in turn, (2) crafting a Chapter 9 Plan for and on behalf of said Sponsor.

a.) See Rule 9-1.3 Definitions which provides, in relevant part, as follows:

“(i) Sponsor. Sponsor shall mean a group that provides a plan for the benefit of its members.”

b.) See Rule 9-1.3 Definitions which provides, in relevant part, as follows:

“(d) Group. Group shall mean an organization of 2 or more persons whose individual members are identifiable in terms of some common interest or affinity.

Examples of groups shall include, but not be limited to, the following [the “Traditional Groups”]:

(1) churches; (2) educational institutions; (3) credit unions; (4) employing units; and (5) associations (emphasis supplied).”

Further, during the presentation today, this writer will describe examples of non-Traditional Groups which have previously met the definitional requirements of Rule 9-1.3(d).

1.11 3. TERMS AND CONDITIONS

a. 2. DEFINITION OF “PLAN PARTICIPANT”

1.) COMMENT:

Because the aggregate number of

Plan Participants shall, in turn, affect the overall usage of the legal services to be

so provided under the Chapter 9 Plan -- which shall, ultimately, impact the overall

operation of said Chapter 9 Plan -- a Managing Attorney must use great care in,

and give due consideration to, fully and completely defining a Plan Participant;

and, consisting of, e.g., the following:

a.) Member, only ??? b.) Spouse of Member ??? c.) Minor children ??? d.) Dependent children ??? e.) Adult children16 ???

b. 3. LEGAL SERVICES: INCLUDED and 4. LEGAL SERVICES: EXCLUDED

1.) COMMENT:

a.) This writer would submit that

it is far easier to describe the legal services to include, rather than exclude, in a Plan.

b.) For example, a Managing

Attorney may, first, describe the specific legal services to be so included in the

Chapter 9 Plan and, then, simply make the statement that “all other legal services are hereby excluded”.

16 Including coverage until, e.g., the Member’s adult children turn 26 [akin to the former mandate contained in policies of health insurance by and under the Affordable Care Act (“Obamacare”)].

1.12 c. 5. GEOGRAPHIC AREA

1.) COMMENT:

a.) This writer would caution

that the nature of the “detailed description” required in order to comply with this

“Geographic Area” requirement of the Agreement may certainly negatively

impact the Managing Attorney’s “bottom line” the greater the likelihood the

nature of the legal services to be so included in the Plan shall be performed in a

location other than the Managing Attorney’s office and/or home city/county17.

d. 6. PAYMENT OF FEES: SPONSOR TO MANAGING ATTORNEY and 7. PAYMENT OF FEES: PLAN PARTICIPANTS TO MANAGING ATTORNEY

1.) COMMENT:

For obvious reasons -- not the least

of which is the reasonable likelihood that the fees agreed to be paid by and under

the Plan shall actually be in hand received by the Managing Attorney -- a

Managing Attorney must use great care in, and give due consideration to, the impact and effect these particular requirements shall have upon the ability of the

Managing Attorney to, ultimately, craft a successful Chapter 9 Plan.

17 For instance, this issue has the potential, seemingly, to be of much greater significance in the litigation context [wherein, e.g., venue may be in a county 200 miles away from the Managing Attorney’s office] rather than in the transactional context [wherein, in general, services are performed at or near the Managing Attorney’s office].

1.13 e. 8. METHOD OF REVIEW AND RESOLUTION OF DISPUTES and 9. METHOD OF TERMINATION

1.) COMMENT:

a. Although these provisions may not, upon first impression, appear to be as important as the previously described sections of the Agreement, they are, upon further review, very

important in the creation of a Chapter 9 Plan.

b. Therefore, a Managing

Attorney must use great care in, and give due consideration to, negotiating both of

these provisions with the Sponsor; and, especially with respect to the

methodology by which the Agreement may be terminated by, either, the

Managing Attorney or the Sponsor.

f. 10. - 18. {Furnish additional “Term and Condition”, if desired}

1.) COMMENT:

These nine (9) “blank” provisions have been made available by the Committee in order to easily permit the

Managing Attorney to include in the Agreement, “if desired”, any additional

contractual provision that may be agreed upon with the Sponsor18.

18 Including provisions relating to, e.g., “Indemnification” and “Governing Law and Venue”.

1.14 g. 23. CHAPTER 9, RULES REGULATING THE FLORIDA BAR

1.) COMMENT:

This provision has been included in the Agreement in order to serve as a handy reference guide to a Managing

Attorney with respect to the requirements of Rule 9-2.2(a)(1) providing that a

Managing Attorney shall “exercise every reasonable effort in order to assure that the plan is operated in an ethical manner and is in compliance with the Rules

Regulating The Florida Bar (emphasis supplied)”.

E. “Affirmative Statement by Managing Attorney”19

“The Managing Attorney shall complete any and all legal services undertaken for and on behalf of a Plan Participant to the extent of the benefits provided under the Plan in the event of the termination of the Plan.”

F. “Affirmation and Verification by the Managing Attorney”20

NOTE: IF the Plan Attorney(s) and the Managing

Attorney are all in the Managing Attorney’s law firm and ONLY they shall be the sole Plan Attorneys under the Chapter 9 Plan, THEN (1) THIS FORM IS

REQUIRED to be filed AND (2) the filing requirement of that certain

“Agreement by and between Managing Attorney and Plan Attorney”21 shall -

- by virtue of the last paragraph of said Rule 9-2.2(a)(8) -- be WAIVED.

19 As required by and under Rule 9-2.2(a)(8). 20 As required by and under Rule 9-2.2(a)(8), if applicable. 21 As required to be included in the Plan Application by and under Rule 9-2.2(c).

1.15 G. “Assurance by Specified Member of the Managing Attorney’s Law Firm to The Florida Bar”22

NOTE: Notwithstanding the fact that the filing

requirement of that certain “Agreement by and between Managing Attorney

and Plan Attorney”, shall, as described in paragraph F, above, be WAIVED,

each said “Specified Attorney” must, still, assure the Bar that a professional

liability insurance policy has been so issued in favor of said “Specified Attorney”

in an amount not less than $100,000.

H. “Affirmative Statement by Specified Member of the Managing Attorney’s Law Firm”23

“The Specified Attorney shall complete any and all legal services undertaken for and on behalf of a Plan Participant to the extent of the benefits provided under the Plan in the event of the termination of the Plan.”

I. “Assurance by Plan Attorney to The Florida Bar”24

NOTE: The Plan Attorney gives this “Assurance” --

identical in nature to the “Assurance” given by, both, the Managing Attorney and

the “Specified Attorney”, if applicable -- to the Bar that a professional liability

insurance policy has been issued in favor of said Plan Attorney in an amount not

less than $100,000.

J. “Affirmative Statement by Plan Attorney”25

“The Plan Attorney shall complete any and all legal services undertaken for and on behalf of a Plan Participant to the extent of the benefits provided under the Plan in the event of the termination of the Plan.”

22 As required, by implication, by and under Rule 9-2.2(c)(1). 23 As required by and under Rule 9-2.2(a)(8). 24 As required by and under Rule 9-2.2(c)(1). 25 As required by and under Rule 9-2.2(c)(2).

1.16 VII. RELEVANT MARKETING ISSUES TO BE CONSIDERED IN THE CREATION OF A CHAPTER 9 PLAN

This writer shall now take the opportunity in this lecture outline to

provide commentary on issues concerning the marketing of a Chapter 9 Plan --

which are, as well as the issues raised in ARTICLE VI, above, necessarily

relevant to be considered by a Managing Attorney contemplating the creation of a

Chapter 9 Plan -- as follows:

A. In re the Marketing to Prospective Sponsors of a Chapter 9 Plan

1. Rule 9-3.1 Activities of Managing Attorneys26 provides, in relevant part, as follows:

“Managing attorneys and their employees or agents may:

(a) directly contact representatives or fiduciaries of groups for the purpose of informing them of the availability of a plan offered by the managing attorney.”

2. COMMENT:

a. This rule -- upon providing that a Managing

Attorney may directly contact representatives or fiduciaries of groups for the

purpose of informing them of the availability of a Chapter 9 Plan offered by the

Managing Attorney -- is, in the opinion of this writer, at once, the single most

important provision contained in Chapter 9 and, notwithstanding the express

language of said Rule, the least understood, and appreciated, of any provision

contained in Chapter 9 by many a prospective Managing Attorney.

26 Rule 9-3.1, in toto, provides to Managing Attorneys -- and their employees or agents -- notice of, and guidance on, the scope and extent of various marketing and administrative activities ethically permissible to be undertaken in the operation of a Chapter 9 Plan.

1.17 b. In brief, the Comment to Rule 4-7.18, as so reproduced in subparagraph 3, should certainly allay any concerns a prospective

Managing Attorney may have with respect to the ethical propriety of the type of

permissible “contact” so described in Rule 9-3.1(a).

3. Rule 4-7.18 DIRECT CONTACT WITH PROSPECTIVE CLIENTS

Comment

“Group or Prepaid Legal Services Plans

This rule would not prohibit a lawyer from contacting representatives of organizations or groups that may be interested in establishing a group or prepaid legal plan for its members, insureds, beneficiaries, or other third parties for the purpose of informing such entities of the availability of, and details concerning, the plan or arrangement that the lawyer or the lawyer’s law firm is willing to offer. This form of communication is not directed to a specific prospective client known to need legal services related to a particular matter. Rather, it is usually addressed to an individual acting in a fiduciary capacity seeking a supplier of legal services for others who may, if they choose, become clients of the lawyer. Under these circumstances, the activity that the lawyer undertakes in communicating with such representatives and the type of information transmitted to the individual are functionally similar to and serve the same purpose as advertising permitted under other rules in this subchapter (emphasis supplied).”

B. In re the Marketing to Prospective Plan Participants of a Chapter 9 Plan

1. Rule 9-3.1 Activities of Managing Attorneys provides, in relevant part, as follows:

“Managing attorneys and their employees or agents may:

(b) upon board approval of a plan, provide any written form of communication to members of the sponsor for the purpose of informing them of the availability of said plan and inviting them to become plan participants therein but only in accordance with the advertising and solicitation provisions of these Rules Regulating The Florida Bar (emphasis supplied)”.

1.18 2. COMMENT:

a. This rule -- upon providing that, upon Board approval of a Chapter 9 Plan, a Managing Attorney may - ONLY in accordance

with the advertising and solicitation provisions of the Rules Regulating The

Florida Bar - send any written form of communication directly to members of the

Sponsor for the purpose of informing them of the availability of such approved

Chapter 9 Plan and inviting them to so become Plan Participants therein -- is, in

the opinion of this writer, problematic, at best, and fatal, at worst, for any

Managing Attorney pursuing the creation of a successful Chapter 9 Plan.

b. As such, in order to not run afoul of the

Bar’s advertising rules, a Managing Attorney should consider having the Sponsor

so provide any such written form of communication directly to its members.

VIII. RELEVANT ADMINISTRATION ISSUES TO BE CONSIDERED IN THE OPERATION OF A CHAPTER 9 PLAN

This writer shall now provide commentary on issues concerning

the administration of a Chapter 9 Plan, as follows:

A. In re the Administration of a Chapter 9 Plan

1. Rule 9-3.1 Activities of Managing Attorneys provides, in relevant part, as follows:

“Managing attorneys and their employees or agents may:

1.19 Examples of permissible administrative activities shall include, but not be limited to, the compilation of the following:

(1) types of legal services performed;

(2) time expended per legal matter;

(3) number of plan participants receiving legal services under the plan; and

(4) the amount and method of payment of the fees paid to the plan attorney(s).

Notwithstanding any other provision herein to the contrary, the managing attorney is expressly prohibited from contracting with any third party of whatsoever type or kind to perform any administrative activities regarding the plan whatsoever (emphasis supplied).”

2. COMMENT:

This rule -- upon providing that a Managing

Attorney may do any and all things necessary and proper in order to fully and completely administer such approved Chapter 9 Plan -- expressly prohibits [by

virtue of the last paragraph thereof] the Managing Attorney from contracting with any third party, of whatsoever type or kind, to perform any such administrative

activities regarding the subject Chapter 9 Plan; and, thus, by default, requires the

Managing Attorney to so maintain “in-house” any and all such administrative

activities with respect to a Chapter 9 Plan.

1.20 IX. HOW TO MAKE CHAPTER 9 WORK FOR YOU: A FEW FINAL ISSUES TO CONSIDER AND CONTEMPLATE BEFORE EMBARKING UPON THE CRAFTING OF YOUR [SUCCESSFUL] CHAPTER 9 PLAN

A. What Comes First: A “Chapter 9 Plan” or a Sponsor?

1. Obviously, without a Chapter 9 Plan, there can be

no Sponsor; and, likewise, without a Sponsor, the need for a Chapter 9 Plan is

moot. So how is this dilemma solved?

2. First, the Managing Attorney -- before proceeding

into the Chapter 9 arena -- really only needs to know the general framework of

the prospective Chapter 9 Plan to be offered to a potential Sponsor [e.g., legal

services to be included; geographic area to be covered; and, the amount of, and

who pays, the fees].

3. Then, once negotiations begin with a prospective

Sponsor, the particulars of the Chapter 9 Plan -- as more fully explored above --

may, at that time, be addressed and, then, negotiated and included in the

Agreement.

B. Use Rule 9-3.1(a) To Your Advantage to Gain Access to Prospective Sponsors

In light of the fact that the Chapter 9 arena is as much, if

not more, about the Managing Attorney’s “entrepreneurial spirit” rather than any per se ability to “practice law”, a prospective Managing Attorney should take full

advantage of Rule 9-3.1(a) in order to reach out to prospective Sponsors for the

purpose of informing them of the availability of a Chapter 9 Plan.

1.21 C. Embrace the Following Concept: “Less is More”

1. In brief, just because a Chapter 9 Plan appears, on

its surface, to be “simple” (upon, e.g., limiting the legal services to be provided

therein to ONLY one particular area of law), does not mean that it will not be

successful.

2. Indeed, based upon the historical records of the

Committee, some of the most successful Chapter 9 Plans have been those which

have focused on a single area of law [e.g., estate planning and/or the preparation

of, only, simple Last Wills and Testaments] or a niche area of practice [e.g.,

defense of traffic citations issued to cab drivers].

3. As such, a prospective Managing Attorney should

certainly not feel compelled or “pressured” to provide legal services in every

imaginable area of law simply in order to appear to be a “full service” attorney.

D. Consider the Concept of a “Springing Chapter 9 Plan” in Order to Enhance Your Prospects for Economic Success

1. Depending upon the economic model adopted by the Managing Attorney, a “Springing Chapter 9 Plan” may need to be considered in order to make the Chapter 9 Plan economically viable for the

Managing Attorney.

1.22 2. EXAMPLE

a. Employer has 1,000 employees.

b. The Chapter 9 Plan is “voluntary” [i.e., an

employee chooses to join the Chapter 9 Plan; and, thus, become a “Plan

Participant” eligible to receive legal services thereunder].

c. The Managing Attorney, upon conduct of a

“cost benefit analysis” of the Chapter 9 Plan [i.e., fees to be generated vs. time expended in order to realize said fees], determines that a minimum of 100 employees would be required to join the Chapter 9 Plan in order to make same economically viable.

d. Whereupon, the Managing Attorney would then negotiate with the Sponsor to include in the subject “Agreement” a contractual provision fully and completely detailing that the Chapter 9 Plan shall commence operations at a time certain in the future [and, thus, “spring to life”] when said required 100 employees have so joined the Chapter 9 Plan27.

E. What is NOT a Chapter 9 Plan

In light of the fact that the substantive provisions of

Chapter 9 are, at times, misunderstood by Florida attorneys in private practice

who are NEW to the Chapter 9 arena, this writer reasonably believes that it may

be beneficial to prospective Managing Attorneys in crafting a successful Chapter

9 Plan to have some guidance on knowing what is NOT a Chapter 9 Plan.

27 The inclusion of such “Springing Chapter 9 Plan” language as an additional contractual provision in the Agreement is, certainly, a further acceptable use of those certain nine (9) “blank” provisions made available by and under provisions 10. - 18. {Furnish additional “Term and Condition”, if desired} of the Agreement.

1.23 Whereupon, by example only:

1. A Chapter 9 Plan is NOT offering legal services to members of the “public at large”.

2. A Chapter 9 Plan is NOT offering legal services to members of the “public at large” who have an “identifiable” “legal issue”; and, e.g., whether the subject legal issue involves declaring bankruptcy; owning a time share resort; or, having a home foreclosed.

3. A Chapter 9 Plan is NOT an entity -- desiring to qualify as a “Sponsor” by and under Chapter 9 -- established for the sole purpose to market to members of the “public at large” in order to solicit their membership to join a “legal services plan” offering legal services to its “members”.

X. CONCLUSION

In conclusion, this writer trusts that this lecture outline, including the reference materials contained in the accompanying appendix, as well as the presentation today, will now encourage Florida attorneys in private practice to give due and serious consideration to making Chapter 9 a part of their global business plan for the purpose of, ultimately, expanding their OVERALL private client base28.

28 Consisting of, both, “Chapter 9 Plan Built-In” and “Personal” private client bases.

1.24 APPENDIX

A. Chapter 9, Legal Services Plans Rules and Regulations, Rules Regulating The Florida Bar

B. Rule 4-7, Information About Legal Services, Rules Regulating The Florida Bar

C. Chapter 9 Plan Application Packet

1. “Introduction”

2. FORMS

(1) “Request for Approval of Chapter 9 Plan Application by Managing Attorney”

(2) “Chapter 9 Plan Identifying Information”

(3) “Assurances by the Managing Attorney to The Florida Bar”

(4) “Agreement by and between Managing Attorney and Sponsor”

(5) “Affirmative Statement by Managing Attorney”

(6) “Affirmation and Verification by the Managing Attorney”

(7) “Assurance by Specified Member of the Managing Attorney’s Law Firm to The Florida Bar”

(8) “Affirmative Statement by Specified Member of the Managing Attorney’s Law Firm”

(9) “Assurance by Plan Attorney to The Florida Bar”

(10) “Affirmative Statement by Plan Attorney”

3. “Chapter 9 Operating Rules and Regulations”

D. Listing of Chapter 9 Plans1

1. By Managing Attorney 2. By Name of the Chapter 9 Legal Services Plan

1 All as approved by the Board of Governors of The Florida Bar.

1.25 E. Prepaid Legal Services Committee: Attorney Pamphlet

1. “What Every Florida Attorney Should Know About Chapter 9 Legal Services Plans”

F. John Schaefer, “Chapter 9 Legal Services Plans: An Opportunity for Florida Attorneys to Deliver Legal Services to Floridians in the Post-COVID-19 World”, The Florida Bar Journal, March/April 2021, p. 42

G. John Schaefer, “A New Day Has Dawned for Legal Services Plans in Florida”, The Florida Bar Journal, November 1998, p. 76

H. Ronald P. Glantz, “Building Your Small Firm Practice on a Prepaid Foundation”, The Florida Bar Journal, January, 1994, p. 48

I. Ronald P. Glantz, “Opportunities for Practice in Legal Services Plans”, The Florida Bar Journal, April, 1990, p. 71

1.26 RULES REGULATIONG THE FLORIDA BAR

RULE 9 - LEGAL SERVICES PLANS RULES AND REGULATIONS

9-1 GENERALLY

RULE 9-1.1 AUTHORITY

Pursuant to the provisions of bylaw 2-3.2(d), the Board of Governors of The Florida Bar hereby establishes these rules and regulations for the operation of legal services plans in this state.

RULE 9-1.2 STATEMENT OF POLICY AND PURPOSES

Every citizen of this state should have access to the legal system. A person's ability to gain such access is enhanced by the assistance of and representation by an attorney duly licensed to practice law in this state. However, many persons simply do not seek legal assistance because of a failure to recognize the existence of a legal problem, inability to locate an attorney, fears of excessive cost of legal representation, or other reason. To this end, it is the policy of The Florida Bar to support the concept and to actively encourage the establishment, operation, growth, and development of legal services plans as 1 means of increasing a person's ability to obtain legal services at an affordable cost in order to have the opportunity to better gain access to the legal system.

RULE 9-1.3 DEFINITIONS

Unless otherwise described in this chapter, the following terms shall have the following described meanings:

(a) Bar - The bar shall mean The Florida Bar.

(b) Board - The board shall mean the Board of Governors of The Florida Bar.

(d) Group - Group shall mean an organization of 2 or more persons whose individual members are identifiable in terms of some common interest or affinity. Examples of groups shall include, but not be limited to, the following:

(1) churches; (2) educational institutions; (3) credit unions; (4) employing units and (5) associations.

1.27 (e) Legal Services Plan - Legal services plan shall mean an arrangement whereby a sponsor contracts directly with a managing attorney for the provision of legal services to its members, hereinafter referred to as a plan. Lawyer referral services and legal aid societies shall be specifically excepted from this definition.

(f) Managing Attorney - Managing attorney shall mean a member in good standing of The Florida Bar who shall be the person responsible to the bar for the proper conduct and operation of a plan.

(g) Plan Attorney - Plan attorney shall mean a member in good standing of The Florida Bar who, upon contracting in writing directly with a managing attorney, shall provide legal services to plan participants under a plan.

(h) Plan Participant - Plan participant shall mean a member of a sponsor eligible to receive legal services under a plan.

(i) Sponsor - Sponsor shall mean a group that provides a plan for the benefit of its members.

9-2 REQUIREMENTS

RULE 9-2.1 REQUIREMENTS FOR ESTABLISHING A PLAN

A managing attorney shall not be permitted to operate a plan in this state without first obtaining approval by the board of governors to establish such plan. A managing attorney seeking to obtain board approval of a plan shall file with the committee a plan application pursuant to the requirements of this chapter.

RULE 9-2.2 FORM AND CONTENT OF PLAN APPLICATION

A plan application shall consist of the following:

(a) Assurances by the Managing Attorney to the Bar. The managing attorney shall make the following assurances to the bar, in writing, executed on a form approved and adopted for use for such purpose by the committee:

(1) to exercise every reasonable effort in order to assure that the plan is operated in an ethical manner and is in compliance with the Rules Regulating The Florida Bar;

(2) to have a professional liability insurance policy issued in favor of the managing attorney in an amount not less than $100,000, and to attach to this form a copy of the declarations page of said policy;

(3) to take any and all steps reasonable and necessary in order to assure that there are a sufficient number of plan attorneys available in order to be able to adequately and properly perform the legal services to be provided under the plan;

1.28 (4) to file with the committee written notice of any proposed change to be made in any item described in the agreement described in subdivision (b).

(5) to not implement any proposed change described in subdivision (a)(4) without first obtaining the approval of the board;

(6) to file with the committee written notice of the termination of and cessation of operations by the plan within 10 days of such occurrence;

(7) to file with the committee a renewal request form approved and adopted for use for such purpose by the committee, as more particularly described in rule 9-2.5; and

(8) if applicable, to affirm and verify that the managing attorney and any specified members of the managing attorney's law firm shall be the sole plan attorney(s) under the plan.

Upon such affirmation and verification, the filing requirement of the agreement described in subdivision (c) shall be waived, and the managing attorney and any such specified members of the managing attorney's law firm shall each make an affirmative statement that the managing attorney and all such specified attorneys shall complete any and all legal services undertaken for and on behalf of a plan participant to the extent of the benefits provided under the plan in the event of the termination of the plan.

(b) Agreement by and between Managing Attorney and Sponsor. The managing attorney and sponsor shall both execute a written agreement which shall include, but not be limited to, the following:

(1) a detailed definition of who shall constitute a plan participant under the plan;

(2) a detailed description of any and all of the legal services to be provided under the plan;

(3) a detailed description of any and all of the legal services to be excluded under the plan;

(4) a detailed description of the geographic area in which the legal services shall be performed under the plan;

(5) the amount and method of payment of the fees to be paid to the managing attorney by the sponsor under the plan;

(6) the amount and method of payment of the fees to be paid to the managing attorney by the plan participants under the plan;

(7) a detailed description of the method of review and resolution of disputes and grievances arising under the plan;

(8) a method of termination of the agreement by either the managing attorney or the sponsor;

1.29 (9) an affirmative statement that the plan participant is the client under the plan and that the sponsor will have no influence whatsoever over the attorney-client relationship established there under;

(10) an affirmative statement that the plan participant is free to use a non-plan attorney, either at the plan participant's own expense or with reimbursement to be provided by either the managing attorney or the sponsor;

(11) a statement informing the plan participant that the plan participant may file a complaint with Staff Counsel, The Florida Bar, 651 E. Jefferson Street, Tallahassee, Florida 32399-2300.

(12) A disclaimer announcement, as follows: "The Florida Bar does not guarantee in any way the success of the plan and gives no assurances of the quantity or quality of the legal services to be provided there under. Total responsibility for the delivery of legal services under the plan rests solely and entirely with the sponsor and the managing attorney and the plan attorneys."

(c) Agreement by and between Managing Attorney and Plan Attorney. The managing attorney and plan attorney shall both execute a written agreement which shall include, but not be limited to, the following:

(1) an assurance by the plan attorney to have a professional liability insurance policy issued in favor of the plan attorney in an amount not less than $100,000, and to attach to this agreement a copy of the declarations page of said policy;

(2) an affirmative statement that the plan attorney shall complete any and all legal services undertaken for and on behalf of a plan participant to the extent of the benefits provided under the plan in the event of the termination of the plan;

(3) a detailed description of any and all of the legal services to be performed by the plan attorney under the plan;

(4) a detailed description of the geographic area in which the legal services shall be performed by the plan attorney under the plan;

(5) the amount and method of payment of the fees to be paid to the plan attorney by the managing attorney under the plan;

(6) the amount and method of payment of the fees to be paid to the plan attorney by the plan participants under the plan;

(7) a detailed description of the method of review and resolution of disputes and grievances arising under the plan;

(8) a method of termination of the agreement by either the managing attorney or the plan attorney; and

1.30 (9) an affirmative statement that the plan participant is the client of the plan attorney and that neither the sponsor nor the managing attorney will have any influence whatsoever over the attorney-client relationship established by and between the plan participant and the plan attorney thereunder.

(d) Other Documents. Pursuant to the authority contained in rule 9-3.3, the committee, in its discretion, may require other documents to be included in or filed with the plan application.

(e) Application Fee. Each plan application shall be accompanied by an application fee in the amount of $125 made payable to The Florida Bar.

RULE 9-2.3 REVIEW OF PLAN APPLICATION BY THE COMMITTEE

The plan application described in rule 9-2.2 shall be reviewed by both staff of the bar and a plan review subcommittee of the committee. Thereupon a report shall be provided to the committee at 1 of its regularly scheduled meetings. Upon consideration of said report, the committee, in its discretion, may:

(a) approve the plan application and thereupon make a recommendation to the board to approve said plan;

(b) approve the plan application conditionally upon requiring the managing attorney to file with the committee any requested additional or corrective information and, upon such compliance by the managing attorney, then make a recommendation to the board to approve said plan;

(c) require the managing attorney to file with the committee any requested additional or corrective information so that the committee may further review the plan application; or

(d) disapprove the plan application and thereupon advise the managing attorney of the reasons therefore.

RULE 9-2.4 APPROVAL OF PLAN BY THE BOARD

The committee shall request the board to place the committee's recommendation for approval of a plan on the agenda of a regularly scheduled meeting of the board. Upon consideration of the committee's recommendation for approval of a plan, the board in its discretion may either approve or disapprove the establishment of the plan. Thereupon the committee shall advise the managing attorney of the board's action.

RULE 9-2.5 RENEWAL

All plans approved by the board pursuant to this chapter shall be subject to renewal, as follows:

(a) If said approval is granted prior to July 1 of the year, then the managing attorney shall be required to file with the committee the plan's initial renewal request form as of December 31 of said year.

1.31 (b) If said approval is granted subsequent to July 1 of the year, then the managing attorney shall be required to file with the committee the plan's initial renewal request form as of December 31 of the following year.

(c) Subsequent to the filing of the initial renewal request form, the managing attorney shall file with the committee the plan's renewal request form as of December 31 of each and every year thereafter.

(d) Each renewal request form shall be accompanied by a renewal fee in the amount of $25 made payable to The Florida Bar.

RULE 9-2.6 REVOCATION

The board, in its discretion, may revoke any and all prior approval of a plan if the plan does not comply with any rule or regulation within these Rules Regulating The Florida Bar.

9-3 MISCELLANEOUS

RULE 9-3.1 ACTIVITIES OF MANAGING ATTORNEYS

Managing attorneys and their employees or agents may:

(a) directly contact representatives or fiduciaries of groups for the purpose of informing them of the availability of a plan offered by the managing attorney;

(c) do any and all things necessary and proper in order to fully and completely administer the plan. Examples of permissible administrative activities shall include, but not be limited to, the compilation of the following:

(1) types of legal services performed;

(2) time expended per legal matter;

(3) number of plan participants receiving legal services under the plan; and

(4) the amount and method of payment of the fees paid to the plan attorney(s).

1.32 RULE 9-3.2 LIMITATION ON PRACTICE

Nothing in this chapter shall be construed as authorizing any limitation whatsoever on the practice of law not otherwise required of all attorneys licensed in this state.

RULE 9-3.3 OPERATING RULES AND REGULATIONS

Either the board or the committee, in its discretion, may from time to time adopt such operating rules and regulations deemed to be either reasonable or necessary governing the establishment, operation, or conduct of plans under this chapter.

RULE 9-3.4 AMENDMENTS

These rules and regulations for the operation of plans in this state may be amended pursuant to the provisions of the Rules Regulating The Florida Bar.

1.33 1.34 1.35 1.36 1.37 1.38 1.39 1.40 1.41 1.42 1.43 1.44 1.45 1.46 1.47 1.48 1.49 1.50 1.51 1.52 1.53 1.54 1.55 New: 02/03/2012 Rev 1: 07/02/2014 CHAPTER 9 OPERATING RULES AND REGULATIONS [In Re: Chapter 9 Plan Application Packet]

The Prepaid Legal Services Committee (the “Committee”), being a standing committee of The Florida Bar, hereby adopts the following operating rules and regulations governing the establishment of a Chapter 9 Plan1:

A. The Managing Attorney2 shall file with the Committee one (1) original and seven (7) copies of each of the following described items:

1. “Request for Approval of Chapter 9 Plan Application by Managing Attorney” (the “Request”).

2. All such “Mandatory” items so listed in paragraph A of the Request.

3. Any such “If Applicable” item so checked in paragraph B of the Request.

4. Any such “Other” item so checked in paragraph C of the Request.

B. A Request shall be considered timely if filed with the Committee:

On or Before For Consideration @ the Following Meeting

August 15 The Florida Bar Fall Meeting3 November 15 The Florida Bar Winter Meeting4 April 15 Annual Florida Bar Convention5

C. The Request shall be reviewed by the Committee in accordance with the provisions of Rule 9-2.3 of the Rules.

D. The filing described herein shall be submitted, and any inquiries thereon may be directed, to:

Ms. Ricky Libbert, Program Administrator Prepaid Legal Services Committee The Florida Bar 651 East Jefferson Street Tallahassee, Florida 32399-2300 Tel: (850) 561-5631 Fax: (850) 561-5825

1 As authorized by and under Rule 9-3.3, Rules Regulating The Florida Bar, (the “Rules”). 2 As that term is defined in Rule 9-1.3(f) of the Rules. 3 Generally held sometime during the month of October. 4 Generally held sometime during the month of January. 5 Always held sometime during the month of June. 1.56

1.57 REQUEST FOR APPROVAL OF CHAPTER 9 PLAN APPLICATION BY MANAGING ATTORNEY1

{Full Name of Managing Attorney2} ______, (the “Managing Attorney”), with offices located at {Managing Attorney’s Address} ______, hereby requests that the Board3 approve this “Request for Approval of Chapter 9 Plan Application by Managing Attorney” (the “Request”) and, in support thereof, files with the Committee4 the following described items {please check those items so filed with this Request}:

A. Mandatory

1. _____ “Chapter 9 Plan Identifying Information”

2. _____ “Assurances by the Managing Attorney to The Florida Bar”5

3. _____ “Agreement by and between Managing Attorney and Sponsor”6

4. _____ “Affirmative Statement by Managing Attorney”

5. _____ Payment of application fee, made payable to “The Florida Bar”, in the amount of $125.007.

B. If Applicable

1. _____ “Affirmation and Verification by the Managing Attorney”8

2. _____ “Assurance by Specified Member of the Managing Attorney’s Law Firm to The Florida Bar”9

3. _____ “Affirmative Statement by Specified Member of the Managing Attorney’s Law Firm”10

1 As authorized by and under Rule 9-2.1, Rules Regulating The Florida Bar, (the “Rules”). 2 As that term is defined in Rule 9-1.3(f) of the Rules. 3 As that term is defined in Rule 9-1.3(b) of the Rules. 4 As that term is defined in Rule 9-1.3(c) of the Rules. 5 See Rule 9-2.2(a) of the Rules. 6 See Rule 9-2.2(b) of the Rules. 7 See Rule 9-2.2(e) of the Rules. 8 See Rule 9-2.2(a)(8) of the Rules. 9 For each said “Specified Member”. 10 For each said “Specified Member”. “Request for Approval of Chapter 9 Plan Application by Managing Attorney” Page 1 of 2

1.58 4. _____ “Agreement by and between Managing Attorney and Plan Attorney”11

5. _____ “Assurance by Plan Attorney to The Florida Bar”12

6. _____ “Affirmative Statement by Plan Attorney”13

C. Other14 {Provide a detailed description of any such “Other” items filed with this Request}

1. ______

2. ______

3. ______

4. ______

______Signature of Managing Attorney

______Type or Print Name of Managing Attorney

Florida Bar No. ______

______Date

11 See Rule 9-2.2(c) of the Rules [NOTE: Not presently, as of September 6, 2011, furnished by the Committee]. 12 For each said Plan Attorney. 13 For each said Plan Attorney. 14 At the option of the Managing Attorney, if desired. “Request for Approval of Chapter 9 Plan Application by Managing Attorney” Page 2 of 2

1.59 CHAPTER 9 PLAN IDENTIFYING INFORMATION

{Full Name of Managing Attorney1} ______, (the “Managing Attorney”), with offices located at {Managing Attorney’s Address} ______, hereby submits the following identifying information with respect to the subject “Request for Approval of Chapter 9 Plan Application by Managing Attorney”:

A. Managing Attorney

Name: ______Florida Bar No.: ______Law Firm Name: ______Address: ______Telephone: (___)______Facsimile: (___)______E-mail: ______Website: ______

B. Sponsor

Name: ______Address: ______Contact Person: ______Telephone: (___)______Facsimile: (___)______E-mail: ______Website: ______

1 As that term is defined in Rule 9-1.3(f) of the Rules. “Chapter 9 Plan Identifying Information” Page 1 of 2

1.60 C. Legal Services Plan2

Name of Plan: ______

______Signature of Managing Attorney

______Type or Print Name of Managing Attorney

Florida Bar No. ______

______Date

2 As that term is defined in Rule 9-1.3(e) of the Rules. “Chapter 9 Plan Identifying Information” Page 2 of 2

1.61 ASSURANCES BY THE MANAGING ATTORNEY TO THE FLORIDA BAR1

{Full Name of Managing Attorney2} ______, (the “Managing Attorney”), with offices located at {Managing Attorney’s Address} ______, hereby makes the following assurances to The Florida Bar:

(1) To exercise every reasonable effort in order to assure that the plan3 is operated in an ethical manner and is in compliance with the Rules; (2) To have a professional liability insurance policy issued in favor of the Managing Attorney in an amount not less than $100,000, and to attach to this form a copy of the declarations page of said policy; (3) To take any and all steps reasonable and necessary in order to assure that there are a sufficient number of plan attorneys4 available in order to be able to adequately and properly perform the legal services to be provided under the plan; (4) To file with the Committee5 written notice of any proposed change to be made in any item described in the agreement described in Rule 9-2.2(b) of the Rules; (5) To not implement any proposed change described in assurance (4), above, without first obtaining the approval of the Board6; (6) To file with the Committee written notice of the termination of and cessation of operations by the plan within 10 days of such occurrence; (7) To file with the Committee a renewal request form approved and adopted for use for such purpose by the Committee, as more particularly described in Rule 9-2.5 of the Rules.

______Signature of Managing Attorney

______Type or Print Name of Managing Attorney

Florida Bar No. ______

______Date

1 See Rule 9-2.2(a), Rules Regulating The Florida Bar, (the “Rules”). 2 As that term is defined in Rule 9-1.3(f) of the Rules. 3 As that term is defined in Rule 9-1.3(e) of the Rules. 4 As that term is defined in Rule 9-1.3(g) of the Rules. 5 As that term is defined in Rule 9-1.3(c) of the Rules. 6 As that term is defined in Rule 9-1.3(b) of the Rules.

1.62 AGREEMENT BY AND BETWEEN MANAGING ATTORNEY AND SPONSOR1

This “Agreement by and between Managing Attorney and Sponsor” (the “Agreement”) is made and entered into by and between:

{Full Name of Managing Attorney2} ______, (the “Managing Attorney”), with offices located at {Managing Attorney’s Address} ______,

and

{Full Name of Sponsor3} ______, (the “Sponsor”), with offices located at {Sponsor’s Address} ______.

RECITALS

WHEREAS, Managing Attorney is a member in good standing of The Florida Bar;

WHEREAS, Managing Attorney has, in conjunction with the Sponsor, developed a legal services plan4 which is the subject matter of this Agreement, to-wit, the {Full Name of Plan} ______(the “Plan”);

WHEREAS, Sponsor is eligible to provide the Plan for the benefit of its members by virtue of the fact that Sponsor meets the definitional requirements of Group5 for the following reason {provide reason}:

______;

1 See Rule 9-2.2(b), Rules Regulating The Florida Bar, (the “Rules”). 2 As that term is defined in Rule 9-1.3(f) of the Rules. 3 As that term is defined in Rule 9-1.3(i) of the Rules. 4 As that term is defined in Rule 9-1.3(e) of the Rules. 5 As that term is defined in Rule 9-1.3(d) of the Rules.

Page 1 of 12 1.63 WHEREAS, {furnish additional “Recital”, if required}, ______;

WHEREAS, {furnish additional “Recital”, if required}, ______;

WHEREAS, {furnish additional “Recital”, if required}, ______; and,

WHEREAS, Managing Attorney and Sponsor, hereinafter referred to, collectively, as the “Parties”, intend and desire to enter into this Agreement on the terms and conditions hereinafter set forth.

TERMS AND CONDITIONS

NOW THEREFORE, for the reasons set forth above, and in consideration of the mutual covenants, promises, and undertakings of the parties hereto, contained herein, and for other good and valuable consideration, the mutual receipt and sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:

1. INCORPORATION OF “RECITALS”

The “RECITALS” portion of this Agreement, as more fully described above, is true and correct and is hereby incorporated into this Agreement as if fully set forth herein.

2. DEFINITION OF “PLAN PARTICIPANT” 6

A Plan Participant7 under the Plan shall mean {provide a detailed definition of who shall constitute a Plan Participant under the Plan}:

______.

6 As required by and under Rule 9-2.2(b)(1) of the Rules. 7 As that term is defined in Rule 9-1.3(h) of the Rules.

Page 2 of 12 1.64 3. LEGAL SERVICES: INCLUDED8

The legal services to be included under the Plan are as follows {provide a detailed description of any and all of the legal services to be provided under the Plan}:

______.

8 As required by and under Rule 9-2.2(b)(2) of the Rules.

Page 3 of 12 1.65 4. LEGAL SERVICES: EXCLUDED9

The legal services to be excluded under the Plan are as follows {provide a detailed description of any and all of the legal services to be excluded under the Plan}:

______.

9 As required by and under Rule 9-2.2(b)(3) of the Rules.

Page 4 of 12 1.66 5. GEOGRAPHIC AREA10

The geographic area in which the legal services shall be performed under the Plan is as follows {provide a detailed description of the geographic area in which the legal services shall be performed under the Plan}:

______.

6. PAYMENT OF FEES: SPONSOR TO MANAGING ATTORNEY11

The Sponsor shall make payment of the following fees to the Managing Attorney under the Plan {provide the amount and method of payment of the fees to be paid to the Managing Attorney by the Sponsor under the Plan [IF N/A, SO INDICATE]}:

______.

7. PAYMENT OF FEES: PLAN PARTICIPANTS TO MANAGING ATTORNEY12

The Plan Participants shall make payment of the following fees to the Managing Attorney under the Plan {provide the amount and method of payment of the fees to be paid to the Managing Attorney by the Plan Participants under the Plan [IF N/A, SO INDICATE]}:

______.

10 As required by and under Rule 9-2.2(b)(4) of the Rules. 11 As required by and under Rule 9-2.2(b)(5) of the Rules. 12 As required by and under Rule 9-2.2(b)(6) of the Rules.

Page 5 of 12 1.67 8. METHOD OF REVIEW AND RESOLUTION OF DISPUTES13

Disputes and grievances arising by and under the Plan shall be reviewed and resolved as follows {provide a detailed description of the method of review and resolution of disputes and grievances arising under the Plan}:

______.

9. METHOD OF TERMINATION14

This Agreement may be terminated by the Managing Attorney or the Sponsor as follows {provide a method of termination of the Agreement by either the Managing Attorney or the Sponsor}:

______.

13 As required by and under Rule 9-2.2(b)(7) of the Rules. 14 As required by and under Rule 9-2.2(b)(8) of the Rules.

Page 6 of 12 1.68 10. {Furnish additional “Term and Condition”, if desired}: ______

______.

11. {Furnish additional “Term and Condition”, if desired}: ______

______.

12. {Furnish additional “Term and Condition”, if desired}: ______

______.

Page 7 of 12 1.69 13. {Furnish additional “Term and Condition”, if desired}: ______

______.

14. {Furnish additional “Term and Condition”, if desired}: ______

______.

15. {Furnish additional “Term and Condition”, if desired}: ______

______.

Page 8 of 12 1.70 16. {Furnish additional “Term and Condition”, if desired}: ______

______.

17. {Furnish additional “Term and Condition”, if desired}: ______

______.

18. {Furnish additional “Term and Condition”, if desired}: ______

______.

Page 9 of 12 1.71 19. AFFIRMATIVE STATEMENT15

The following affirmative statement is hereby provided:

The Plan Participant is the client under the Plan and, as such, the Sponsor will have no influence whatsoever over the attorney-client relationship established thereunder.

20. AFFIRMATIVE STATEMENT16

The following affirmative statement is hereby provided:

The Plan Participant is free to use a non-Plan attorney, either:

[X one only]

_____ a. At the Plan Participant’s own expense, or

_____ b. With reimbursement to be provided by either the Managing Attorney or the Sponsor.

21. STATEMENT17

The following statement is hereby provided:

The Plan Participant may file a complaint regarding the operation of the Plan with:

Staff Counsel The Florida Bar 651 E. Jefferson Street Tallahassee, Florida 32399-2300

22. DISCLAIMER ANNOUNCEMENT18

The following disclaimer announcement is made:

The Florida Bar does not guarantee in any way the success of the Plan and gives no assurances of the quantity or quality of the legal services to be provided thereunder. Total responsibility for the delivery of legal services under the Plan rests solely and entirely with the Sponsor and the Managing Attorney and the Plan Attorneys.

15 As required by and under Rule 9-2.2(b)(9) of the Rules. 16 As required by and under Rule 9-2.2(b)(10) of the Rules. 17 As required by and under Rule 9-2.2(b)(11) of the Rules. 18 As required by and under Rule 9-2.2(b)(12) of the Rules.

Page 10 of 12 1.72 23. CHAPTER 9, RULES REGULATING THE FLORIDA BAR

Both Managing Attorney and Sponsor agree that, for any and all purposes, the operation of the Plan is subject to the jurisdiction of Chapter 9 of the Rules Regulating The Florida Bar, (the “Rules”); and, including, but not limited to, the following:

a. As required by and under Rule 9-2.2(a)(4) of the Rules, any proposed change to be made in and to this Agreement shall be by an instrument in writing, executed by both the Managing Attorney and the Sponsor, and filed with the Committee19.

b. As required by and under Rule 9-2.2(a)(5) of the Rules, any such proposed change to be made to in and to this Agreement, as so described in subparagraph a, shall be implemented only upon approval thereof by the Board20.

c. As required by and under Rule 9-2.2(a)(6) of the Rules, the termination of and cessation of operations by the Plan shall be by an instrument in writing, executed by both the Managing Attorney and the Sponsor, and filed with the Committee within 10 days of any such termination and cessation of operations by the Plan.

d. As required by and under Rule 9-2.2(a)(7) of the Rules, the Plan shall be renewed in accordance with the provisions of Rule 9-2.5 of the Rules.

e. As required by and under Rule 9-2.2(a)(8) and Rule 9-2.2(c)(2) of the Rules, any and all attorneys who agree to provide legal services to Plan Participants under the Plan shall complete any and all legal services undertaken for and on behalf of a Plan Participant to the extent of the benefits provided under the Plan in the event of the termination of the Plan.

f. As required by and under Rule 9-3.1(c) of the Rules, the Managing Attorney expressly agrees not to contract with any third party of whatsoever type or kind to perform any administrative activities regarding the Plan whatsoever.

24. GOVERNING LAW

This Agreement, and the rights and obligations of the Parties hereunder, shall be interpreted, construed, and enforced, by, under, and in accordance with, the laws of the State of Florida.

25. EFFECTIVE DATE

Notwithstanding any provision contained in this Agreement to the contrary, and regardless of the actual date upon which the Managing Attorney and Sponsor each so executes same, the Parties agree that all of the terms and provisions as so set forth in this Agreement shall become effective only upon approval of the Plan by the Board in accordance with the provisions of Rule 9-2.1 of the Rules.

19 As that term is defined in Rule 9-1.3(c) of the Rules. 20 As that term is defined in Rule 9-1.3(b) of the Rules.

Page 11 of 12 1.73 IN WITNESS WHEREOF, the Parties have hereunto set their hands and seals as follows:

SIGNED, SEALED AND DELIVERED IN THE PRESENCE OF:

MANAGING ATTORNEY:

______Witness Signature Signature of Managing Attorney

______Type or Print Witness Name Type or Print Name of Managing Attorney

______Florida Bar No. ______Witness Signature

______Type or Print Witness Name Date

SPONSOR:

{Full Name of Sponsor} ______

______By ______Witness Signature Signature of Authorized Signatory

______Type or Print Witness Name Type or Print Name of Authorized Signatory

______Witness Signature Date

______Type or Print Witness Name

Page 12 of 12 1.74 AFFIRMATIVE STATEMENT BY MANAGING ATTORNEY1

{Full Name of Managing Attorney2} ______, (the “Managing Attorney”), with offices located at {Managing Attorney’s Address} ______, hereby makes the following affirmative statement:

The Managing Attorney shall complete any and all legal services undertaken for and on behalf of a Plan Participant to the extent of the benefits provided under the Plan in the event of the termination of the Plan.

______Signature of Managing Attorney

______Type or Print Name of Managing Attorney

Florida Bar No. ______

______Date

1 As required by and under Rule 9-2.2(a)(8), Rules Regulating The Florida Bar, (the “Rules”). 2 As that term is defined in Rule 9-1.3(f) of the Rules.

1.75 NEW: 02/03/2012

AFFIRMATION AND VERIFICATION BY THE MANAGING ATTORNEY1

{Full Name of Managing Attorney2} ______, (the “Managing Attorney”), with offices located at {Managing Attorney’s Address} ______, hereby affirms and verifies that the sole Plan Attorneys3 under the Plan shall be the Managing Attorney and the following named specified member(s) of the Managing Attorney’s law firm, (the “Specified Attorney(s)”):

1. ______Type or Print Name of Specified Attorney

Florida Bar No. ______

2. ______Type or Print Name of Specified Attorney

Florida Bar No. ______

3. ______Type or Print Name of Specified Attorney

Florida Bar No. ______

4. ______Type or Print Name of Specified Attorney

Florida Bar No. ______

______Signature of Managing Attorney

______Type or Print Name of Managing Attorney

Florida Bar No. ______

______Date

1 As required by and under Rule 9-2.2(a)(8), Rules Regulating The Florida Bar, (the “Rules”), if applicable. 2 As that term is defined in Rule 9-1.3(f) of the Rules. 3 As that term is defined in Rule 9-1.3(g) of the Rules.

1.76 ASSURANCE BY SPECIFIED MEMBER OF THE MANAGING ATTORNEY’S LAW FIRM TO THE FLORIDA BAR1

{Full Name of Specified Member of Managing Attorney’s Law Firm2} ______, (the “Specified Attorney”), with offices located at {Specified Attorney’s Address} ______, hereby makes the following assurance to The Florida Bar:

(1) To have a professional liability insurance policy issued in favor of the Specified Attorney in an amount not less than $100,000, and to attach to this form a copy of the declarations page of said policy;

______Signature of Specified Attorney

______Type or Print Name of Specified Attorney

Florida Bar No. ______

______Date

1 As required, by implication, by and under Rule 9-2.2(c)(1), Rules Regulating The Florida Bar, (the “Rules”). 2 As that term is referenced in said Rule 9-2.2(a)(8) of the Rules.

1.77 AFFIRMATIVE STATEMENT BY SPECIFIED MEMBER OF THE MANAGING ATTORNEY’S LAW FIRM1

The Specified Attorney shall complete any and all legal services undertaken for and on behalf of a Plan Participant to the extent of the benefits provided under the Plan in the event of the termination of the Plan.

______Signature of Specified Attorney

______Type or Print Name of Specified Attorney

Florida Bar No. ______

______Date

1 As required by and under Rule 9-2.2(a)(8), Rules Regulating The Florida Bar, (the “Rules”). 2 As that term is referenced in said Rule 9-2.2(a)(8) of the Rules.

1.78 ASSURANCE BY PLAN ATTORNEY TO THE FLORIDA BAR1

{Full Name of Plan Attorney2} ______, (the “Plan Attorney”), with offices located at {Plan Attorney’s Address} ______, hereby makes the following assurance to The Florida Bar:

(1) To have a professional liability insurance policy issued in favor of the Plan Attorney in an amount not less than $100,000, and to attach to this form a copy of the declarations page of said policy;

______Signature of Plan Attorney

______Type or Print Name of Plan Attorney

Florida Bar No. ______

______Date

1 As required by and under Rule 9-2.2(c)(1), Rules Regulating The Florida Bar, (the “Rules”). 2 As that term is defined in Rule 9-1.3(g) of the Rules.

1.79 AFFIRMATIVE STATEMENT BY PLAN ATTORNEY1

{Full Name of Plan Attorney2} ______, (the “Plan Attorney”), with offices located at {Plan Attorney’s Address} ______, hereby makes the following affirmative statement:

The Plan Attorney shall complete any and all legal services undertaken for and on behalf of a Plan Participant to the extent of the benefits provided under the Plan in the event of the termination of the Plan.

______Signature of Plan Attorney

______Type or Print Name of Plan Attorney

Florida Bar No. ______

______Date

1 As required by and under Rule 9-2.2(c)(2), Rules Regulating The Florida Bar, (the “Rules”). 2 As that term is defined in Rule 9-1.3(g) of the Rules.

1.80 New: 02/03/2012 Rev 1: 07/02/2014 CHAPTER 9 OPERATING RULES AND REGULATIONS [In Re: Chapter 9 Plan Application Packet]

A. The Managing Attorney2 shall file with the Committee one (1) original and seven (7) copies of each of the following described items:

1. “Request for Approval of Chapter 9 Plan Application by Managing Attorney” (the “Request”).

2. All such “Mandatory” items so listed in paragraph A of the Request.

3. Any such “If Applicable” item so checked in paragraph B of the Request.

4. Any such “Other” item so checked in paragraph C of the Request.

B. A Request shall be considered timely if filed with the Committee:

On or Before For Consideration @ the Following Meeting

August 15 The Florida Bar Fall Meeting3 November 15 The Florida Bar Winter Meeting4 April 15 Annual Florida Bar Convention5

C. The Request shall be reviewed by the Committee in accordance with the provisions of Rule 9-2.3 of the Rules.

D. The filing described herein shall be submitted, and any inquiries thereon may be directed, to:

Ms. Ricky Libbert, Program Administrator Prepaid Legal Services Committee The Florida Bar 651 East Jefferson Street Tallahassee, Florida 32399-2300 Tel: (850) 561-5631 Fax: (850) 561-5825

Prepaid Legal Services Plans 2021 Listing by Plan Name

Managing Attorney ‐ Managing Attorney ‐ Plan Name First Name Last Name Broward County P.B.A. Prepaid Legal Service Plan ‐ Micahel Braverman

Florida Police Benevolent Association, Inc. Legal Services Benefit ‐ Stewart Cohen

N.E.A. Attorney Referral Program ‐ Kareema Haskins Student Legal Services ‐ University of Central Florida Patricia Dullaghan

Pensacola L&N Federal Credit Union Prepaid Legal Service Plan ‐ William E. Farrington Central Credit Union (Formerly Telco of Florida Federal Credit William E. Farrington Union) Prepaid Legal Service Plan ‐ N NYSUT Legal Service Plan for Retirees ‐ Ronald Glantz Bon Secours Venice Health Care Corp. Reduced Rate Legal R. Craig Harrison Services Plan ‐ Lockheed Martin Advanced Recorders Reduced Rate Legal R. Craig Harrison Services Plan ‐ Vista Products Reduced Rate Legal Service Plan ‐ R. Craig Harrison Florida State Employees Federal Credit Union ‐ Thomas C. Staples Gulf Winds Federal Credit Union ‐ Thomas C. Staples Harvesters Federal Credit Union ‐ Thomas C. Staples Member First Credit Union ‐ Thomas C. Staples My Pensacola Credit Union ‐ Thomas C. Staples Second Amendment Legal Services Plan Mark O'Mara

1.82 RULES REGULATING ADDITIONAL INFORMATION ON LEGAL SERVICES PLANS THE FLORIDA BAR LEGAL SERVICES PLANS

CHAPTER 9 - LEGAL SERVICES For additional information on the operation PLANS RULES AND REGULATIONS of Legal Services Plans in the State of Florida, please feel free to contact the following resources: WHAT EVERY FLORIDA RULE 9-1.1. AUTHORITY 1. The Florida Bar ATTORNEY SHOULD KNOW Pursuant to provisions of bylaw 2-3.2(d), 651 East Jefferson Street ABOUT CHAPTER 9 the Board of Governors of The Florida Bar hereby Tallahassee, Florida 32399-2300 LEGAL SERVICES PLANS establishes these rules and regulations for the 1-850-561-5600 operation of Legal Services Plans in this state. www.floridabar.org

RULE 9-1.3. DEFINITIONS Chapter 9 Legal Services Plans are Unless otherwise described in this chapter, 2. Prepaid Legal Services Committee of the following terms shall have the following The Florida Bar arrangements, in compliance with described meanings: Chapter 9 of the Rules Regulating The For specific information relative to Chapter (c) Committee. The committee shall mean the 9 Legal Services Plans, go to The Florida Bar Florida Bar, whereby a Sponsor Prepaid Legal Services Committee, a standing website listed above [www.floridabar.org] and contracts directly with a Managing committee of The Florida Bar. then click on “Inside The Bar”, then Attorney for the provision of legal (d) Group. Group shall mean an organization of 2 “Committees”, then “Standing Committees”, services to its members. and then “Prepaid Legal Services” under or more persons whose individual members are identifiable in terms of some common interest or “Public Service Committees”. affinity. Examples of groups shall include, but not be limited to, the following: 3. Florida Office of Insurance Regulation (1) churches; 200 East Gaines Street (2) educational institutions; Tallahassee, Florida 32399-0305

(3) credit unions; 1-850-413-3140 www.floir.com (4) employing units; and

(5) associations. For specific information relative to non- Chapter 9 Legal Services Plans, go to the (e) Legal Services Plan. Legal Services Plan shall Florida Office of Insurance Regulation website mean an arrangement whereby a sponsor contracts listed above [www.floir.com] and then click on directly with a managing attorney for the provision “Company Search”, and then select “LEGAL of legal services to its members, hereinafter EXPENSE INSURANCE” under “Company referred to as a plan. The Florida Bar Type”. 651 East Jefferson Street (f) Managing Attorney. Managing attorney shall _____ mean a member in good standing of The Florida Tallahassee, Florida 32399-2300 The material in this pamphlet represents general legal advice. 1-850-561-5600 Bar who shall be the person responsible to The Bar Because the law is continually changing, some provisions for the proper conduct and operation of a plan. in this pamphlet may be out of date. It is always best to consult www.floridabar.org an attorney about your legal rights and responsibilities regarding (i) Sponsor. Sponsor shall mean a group that your particular legal situation. 1.83 provides a plan for the benefit of its members. Rev. 1/10 BENEFITS FOR FLORIDA REQUIREMENTS FOR A PERMISSIBLE ACTIVITIES OF ATTORNEYS IN BECOMING MANAGING ATTORNEY MANAGING ATTORNEYS MANAGING ATTORNEYS UNDER TO ESTABLISH A CHAPTER 9 CHAPTER 9 RULE 9-3.1. ACTIVITIES OF MANAGING ATTORNEYS LEGAL SERVICES PLAN Managing attorneys and their employees  Built-in client base comprised of members of or agents may: the sponsor eligible to receive legal services RULE 9-2.1. REQUIREMENTS under a Chapter 9 Plan (being “plan (a) directly contact representatives or participants”) FOR ESTABLISHING A PLAN fiduciaries of groups for the purpose of informing them of the availability of a plan  Ability to tailor the types and kinds of legal A managing attorney shall not be offered by the managing attorney; services rendered to plan participants based permitted to operate a plan in this state without upon a managing attorney’s present law first obtaining approval by the board of (b) upon board approval of a plan, provide practice governors to establish such plan. A managing any written form of communication to attorney seeking to obtain board approval of a members of the sponsor for the purpose of  Potential for receipt by the managing plan shall file with the committee a plan informing them of the availability of said attorney of recurring monthly “retainer” application pursuant to the requirements of this plan and inviting them to become plan income from plan participants depending chapter. participants therein but only in accordance upon the economic model utilized in the with the advertising and solicitation establishment of the Chapter 9 Plan provisions of these Rules Regulating The RULE 9-2.2. FORM AND CONTENT Florida Bar; and  Potential for the managing attorney to OF PLAN APPLICATION in addition to (c) do any and all things necessary and generate income the income proper in order to fully and completely derived from a Chapter 9 Plan upon the A plan application shall consist of the administer the plan. following: following:

Examples of permissible administrative -- Provision of legal services to plan (a) Assurances by the Managing Attorney to not activities shall include, but not be limited participants on legal matters covered by and The Bar. under the Chapter 9 Plan at the managing to, the compilation of the following: attorney’s normal and customary fees (b) Agreement by and between Managing (1) types of legal services performed; Attorney and Sponsor. -- Increase in the built-in Chapter 9 Plan (2) time expended per legal matter; client base upon a plan participant referring a (c) Agreement by and between Managing (3) number of plan participants receiving legal services under the plan; and member of the sponsor eligible to receive legal Attorney and Plan Attorney. (4) the amount and method of payment of services under the Chapter 9 Plan to so join the plan (d) Other Documents. the fees paid to the plan attorney(s).

Notwithstanding any other provision -- Increase in private client base upon a (e) Application Fee. herein to the contrary, the managing attorney plan participant referring a non-member of the sponsor for services rendered at the managing is expressly prohibited from contracting with attorney’s normal and customary fees any third party of whatsoever type or kind to perform any administrative activities 1.84 regarding the plan whatsoever.

CHAPTER 9 LEGAL SERVICES PLANS: AN OPPORTUNITY FOR FLORIDA ATTORNEYS TO DELIVER LEGAL SERVICES TO FLORIDIANS IN THE POST-COVID-19 WORLD

John Schaefer, Esq. Schaefer, Wirth & Wirth Safety Harbor, Florida

At the outset, although it is now some 50 years since the Florida Supreme Court first

created a rule1 permitting the operation of legal services plans in the State of Florida, this writer

would opine that Florida attorneys in private practice have generally been unaware of, and

oblivious to, the existence of Chapter 9 Legal Services Plans and the benefits resulting therefrom

as one means by which to expand their overall private client base.

This writer would further opine that as Florida begins to emerge from the COVID-19

pandemic during calendar year 2021, there has never been a better time for Florida attorneys to

duly consider the creation of a Chapter 9 Plan in order to provide Floridians with the opportunity to better gain access in and to the legal system.

In light of the foregoing, this writer shall endeavor in this article to introduce the concept of Chapter 9 Plans; provide an overview of Chapter 9 Plan regulation in Florida; highlight the benefits of becoming a “Chapter 9 Plan Managing Attorney”; offer a “road map” detailing how to successfully complete the “2012 Committee Forms”; and, identify and discuss issues of import for a prospective Managing Attorney to consider prior to crafting a Chapter 9 Plan.

Introduction to Chapter 9 Plans

Simply, a “Chapter 9 Plan” is a “legal services plan” (“Plan”2) governed by and under the

rules and regulations of Chapter 93.

1.85 Whereupon, upon passage of Chapter 9, as amended, effective April 3, 1998, the Board

of Governors of The Florida Bar (the “Board” or “Board of Governors”) expressly codified the

longstanding public policy position of The Florida Bar (the “Bar”) in support of the concept of

Plans upon adopting Rule 9-1.2, which provides, in relevant part, as follows:

Finally, the Prepaid Legal Services Committee (the “Committee”4) is the body expressly entrusted with the responsibility to ensure that Plans submitted by members in good standing of the Bar are in full and complete compliance with the rules and regulations of Chapter 95.

Chapter 9 Plan Regulation

General Requirements to Establish a Chapter 9 Plan

In general, the requirements to establish a Chapter 9 Plan are described in Rule 9-2.

♦ Rule 9-2.1 provides that a Managing Attorney shall not be permitted to

operate a Chapter 9 Plan in the State of Florida without first obtaining approval therefor by the

Board.

♦ Rule 9-2.1 further provides that a Managing Attorney seeking such

approval of a Chapter 9 Plan shall file with the Committee a Plan Application pursuant to the

requirements of Chapter 9.

♦ Rule 9-2.2 provides that a Plan Application shall consist of 5 items, as

follows:

♦♦ “Assurances by the Managing Attorney to the Bar” [Rule 9- 2.2(a)].

1.86 ♦♦ “Agreement by and between Managing Attorney and Sponsor” [Rule 9-2.2(b)].

♦♦ “Agreement by and between Managing Attorney and Plan Attorney” [Rule 9-2.2(c)].

♦♦ “Other Documents” [Rule 9-2.2(d)].

♦♦ “Application Fee” in the amount of $125.00 [Rule 9-2.2(e)].

Review of Plan Application by the Committee

Rule 9-2.3 provides the Plan Application described in Rule 9-2.2 shall be reviewed by

both staff of the Bar and a Plan Review Subcommittee of the Committee.

Upon the conclusion of such review, the Plan Review Subcommittee shall provide a

report of its findings to the Committee. Thereupon, the Committee, in its discretion, may:

1. Approve the Plan Application [Rule 9-2.3(a)];

2. Approve the Plan Application conditionally upon requiring the Managing

Attorney to file with the Committee any requested additional or corrective information (emphasis

supplied) [Rule 9-2.3(b)];

3. Require the Managing Attorney to file with the Committee any requested additional or corrective information so that the Committee may further review the Plan

Application [Rule 9-2.3(c)]; or

4. Disapprove the Plan Application [Rule 9-2.3(d)].

Approval of Plan Application by the Board of Governors

Rule 9-2.4 provides that the Committee shall request the Board to place the Committee’s recommendation for approval of a Plan on the agenda of a regularly scheduled meeting of the

Board.

1.87 Upon consideration thereof, the Board, in its discretion, may either approve or disapprove

the establishment of the Plan. Thereupon, the Committee, by and through staff of the Bar, shall

advise the Managing Attorney of the Board’s action on the subject Chapter 9 Plan.

Annual Renewal of Plans

In general, the requirements for the annual renewal of Chapter 9 Plans are contained in

Rule 9-2.5; and, which includes a renewal fee in the amount of $25.00 [Rule 9-2.5(d)].

Revocation of Plans6

Rule 9-2.6 provides that the Board, in its discretion, may revoke any and all prior

approval of a Plan if the subject Chapter 9 Plan does not comply with any rule or regulation

within the Rules Regulating The Florida Bar.

Benefits of Becoming a Chapter 9 Plan Managing Attorney

Primary [“Direct”] Benefits

Upon approval by the Board permitting a Managing Attorney to operate a Chapter 9 Plan

in Florida, the Managing Attorney has the opportunity to create, in effect, a “Chapter 9 Plan

Built-In” private client base consisting of the Plan Participants of the Sponsor.

In addition, if the Managing Attorney adopts an economic model based upon a “per capita” payment arrangement in the establishment of the Chapter 9 Plan, then the Managing

Attorney has the potential to receive recurring monthly income in the nature of a “retainer”.

Secondary [“Spin-off”] Benefits

A Managing Attorney has the potential, as well, to generate income in addition to the

income derived directly from a Chapter 9 Plan in the following ways:

♦ Upon the rendering of legal services to Plan Participants on legal matters

not covered by and under the Chapter 9 Plan; and, which such legal services may be billed at the

1.88 Managing Attorney’s normal and customary rates.

♦ Upon a Plan Participant referring a member of the Sponsor eligible to

receive legal services under the Chapter 9 Plan to so join the Plan and become a Plan

Participant; and, thus increase the Managing Attorney’s “Chapter 9 Plan Built-In” private client

base.

♦ Upon an increase in the Managing Attorney’s “Personal” private client

base as a result of the following:

♦♦ A Plan Participant referring a “non-Plan Participant member of

Sponsor” for legal services to be rendered by the Managing Attorney at the Managing Attorney’s normal and customary rates.

♦♦ A Plan Participant referring a family member or friend for legal services to be rendered by the Managing Attorney at the Managing Attorney’s normal and customary rates.

How To Successfully Complete The “2012 Committee Forms”7

This writer shall now take the opportunity in this article to provide commentary on a

number of issues necessarily required to be considered by a Managing Attorney in order to

successfully complete the 2012 Committee Forms8; and, each one of said forms as more

particularly described as follows:

“Request for Approval of Chapter 9 Plan Application by Managing Attorney”9

In brief, this form serves as a “checklist” for the Managing Attorney in requesting

approval of a Chapter 9 Plan.

1.89 “Chapter 9 Plan Identifying Information”

This form requires the Managing Attorney to furnish relevant identifying information vis

the (1) Managing Attorney; (2) Sponsor; and, (3) Chapter 9 Legal Services Plan.

“Assurances by the Managing Attorney to The Florida Bar”10

In particular, Rule 9-2.2(a)(1) provides that a Managing Attorney shall exercise every

reasonable effort in order to assure that the plan is operated in an ethical manner and is in

compliance with the Rules11.

In addition, Rule 9-2.2(a)(2) provides that a Managing Attorney shall have a professional

liability insurance policy issued in favor of the Managing Attorney in an amount not less than

$100,000.

Further, Rule 9-2.2(a)(3) provides that a Managing Attorney shall take any and all steps reasonable and necessary in order to assure that there are a sufficient number of Plan Attorneys

available in order to be able to adequately and properly perform the legal services to be

provided under the plan.

Finally, Rule 9-2.2(a)(5) provides that a Managing Attorney shall not implement any

proposed change to be made in and to that certain “Agreement by and between Managing

Attorney and Sponsor” (as so described in Rule 9-2.2(b)), without first obtaining the approval

of the Board.

“Agreement by and between Managing Attorney and Sponsor”12 (the “Agreement”)

In brief, this Agreement is the essence of a “Chapter 9 Plan”; and, the overall breadth and scope of which is limited only by the Managing Attorney’s own creativity and ingenuity.

1.90 Moreover, the ultimate economic success or failure of a Chapter 9 Plan rests solely upon

the ability of the Managing Attorney to negotiate favorably all of the relevant terms and

conditions of the Agreement; and, including, but not limited to, the type and nature of the legal

services to be so included and the total amount -- and, who [the Sponsor and/or the Plan

Participants] shall be ultimately responsible for the payment -- of the fees to be paid thereunder.

Now, in order to bring to the attention of any prospective Managing Attorney several of

the issues that reasonably need to be considered and addressed thereunder the Agreement, this

writer would highlight the following provisions thereof, to-wit:

INTRODUCTORY PARAGRAPH [In re Managing Attorney13]

In response to another frequently asked question, it is certainly permissible under

Chapter 9 for a Florida attorney to, simultaneously, act as a Managing Attorney of a Chapter 9

Plan and render legal services to Plan Participants thereunder14.

RECITALS

The THIRD “WHEREAS” Clause provides as follows:

“WHEREAS, Sponsor is eligible to provide the Plan for the benefit of its

members by virtue of the fact that Sponsor meets the definitional requirements of Group for the

following reason {provide reason}:”

In brief, this clause -- specifically requiring the Managing Attorney to provide a

reason why the “Sponsor meets the definitional requirements of Group” -- highlights the core

concept of Chapter 9.

As such, it is imperative that a Managing Attorney fully and completely understand and appreciate the interrelationship by and between the terms Sponsor15 and Group16

1.91 prior to (1) embarking upon the identification of a potential Sponsor and, then, in turn, (2) crafting a Chapter 9 Plan for and on behalf of said Sponsor.

Further, and most importantly, Rule 9-1.3(d) also provides as follows:

“Examples of groups shall include, but not be limited to, the following17:

(1) churches; (2) educational institutions; (3) credit unions; (4) employing units; and (5) associations (emphasis supplied).”

TERMS AND CONDITIONS

2. DEFINITION OF “PLAN PARTICIPANT”

Because the aggregate number of Plan Participants shall, in turn, affect the overall usage of the legal services to be so rendered under the Chapter 9 Plan, a Managing

Attorney must use great care in, and give due consideration to, fully and completely defining a

Plan Participant; and, consisting of, if so desired, persons in addition to the Member.

3. LEGAL SERVICES: INCLUDED and 4. LEGAL SERVICES: EXCLUDED

This writer would submit that it is far easier to describe the legal services to include, rather than exclude, in a Plan. As such, for example, a Managing Attorney may, first, describe the specific legal services to be so included in the Chapter 9 Plan and, then, simply make the statement that “all other legal services are hereby excluded”.

5. GEOGRAPHIC AREA

This writer would caution any prospective Managing Attorney that the nature of the “detailed description” required in order to comply with this “Geographic Area” requirement of the Agreement may certainly negatively impact the Managing Attorney’s “bottom line” the

1.92 greater the likelihood the nature of the legal services to be so included in the Chapter 9 Plan shall be performed in a location other than the Managing Attorney’s office and/or home city/county.

For instance, this issue would, seemingly, be of greater significance in the litigation context

[wherein, e.g., venue may be in a county 200 miles away from the Managing Attorney’s office] rather than in the transactional context [wherein, in general, services are performed at or near the Managing Attorney’s office].

6. PAYMENT OF FEES: SPONSOR TO MANAGING ATTORNEY and 7. PAYMENT OF FEES: PLAN PARTICIPANTS TO MANAGING ATTORNEY

For obvious reasons -- not the least of which is the reasonable likelihood that the fees agreed to be paid by and under the Chapter 9 Plan shall actually be in hand received by the

Managing Attorney -- a Managing Attorney must use great care in, and give due consideration to, the impact and effect these particular requirements shall have upon the ability of the Managing

Attorney to, ultimately, craft a successful Chapter 9 Plan.

8. METHOD OF REVIEW AND RESOLUTION OF DISPUTES and 9. METHOD OF TERMINATION

Although these provisions may not, upon first impression, appear to be as important as the previously described provisions of the Agreement, they are, upon further review, very important in the creation of a successful Chapter 9 Plan. Therefore, a Managing

Attorney must use great care in, and give due consideration to, negotiating both of these provisions with the Sponsor; and, especially with respect to the methodology by which the

Agreement may be terminated by, either, the Managing Attorney or the Sponsor.

1.93 10. - 18. {Furnish additional “Term and Condition”, if desired}

In brief, these nine (9) “blank” provisions have been made available by the

Committee in order to easily permit the Managing Attorney to include in the Agreement [“if desired”], any additional contractual provision that may be agreed upon with the Sponsor18.

23. CHAPTER 9, RULES REGULATING THE FLORIDA BAR

This provision has been included in the Agreement by the Committee in order to

serve as a handy reference guide to a Managing Attorney with respect to the requirements of

Rule 9-2.2(a)(1) providing that a Managing Attorney shall “exercise every reasonable effort in order to assure that the plan is operated in an ethical manner and is in compliance with the Rules

Regulating The Florida Bar (emphasis supplied)”.

“Affirmative Statement by Managing Attorney”19

“Affirmation and Verification by the Managing Attorney”20

IF the Plan Attorney(s) and the Managing Attorney are all in the Managing Attorney’s

law firm and ONLY they shall be the sole Plan Attorneys under the Chapter 9 Plan, THEN (1)

THIS FORM IS REQUIRED to be filed with the Committee AND (2) the filing requirement of

that certain “Agreement by and between Managing Attorney and Plan Attorney”21 shall --

by virtue of the last paragraph of said Rule 9-2.2(a)(8) -- be WAIVED.

1.94 “Assurance by Specified Member of the Managing Attorney’s Law Firm to The Florida Bar”22

Notwithstanding the fact that the filing requirement of the above “Agreement by and

between Managing Attorney and Plan Attorney” shall, as described above, be WAIVED,

each said “Specified Attorney” must, still, assure the Bar that a professional liability insurance

policy has been so issued in favor of said “Specified Attorney” in an amount not less than

$100,000.

“Affirmative Statement by Specified Member of the Managing Attorney’s Law Firm”23

“Assurance by Plan Attorney to The Florida Bar”24

The Plan Attorney gives this “Assurance” -- identical in nature to the “Assurance” given

by, both, the Managing Attorney and the “Specified Attorney” [if applicable] -- to the Bar that a

professional liability insurance policy has been issued in favor of said Plan Attorney in an

amount not less than $100,000.

“Affirmative Statement by Plan Attorney”25

Relevant Marketing Issues to be Considered in the Creation of a Chapter 9 Plan

With respect to the marketing of a Chapter 9 Plan26, this writer would offer the following for the consideration of a prospective Managing Attorney, to-wit:

1.95 In re the Marketing to Prospective Sponsors of a Chapter 9 Plan

Rule 9-3.1 Activities of Managing Attorneys27 provides, in relevant part, as follows:

“Managing attorneys and their employees or agents may: (a) directly contact representatives or fiduciaries of groups for the purpose of informing them of the availability of

a plan offered by the managing attorney (emphasis supplied).”

This rule is, in the opinion of this writer, at once, the single most important provision

contained in Chapter 9 and, notwithstanding the express language of said Rule, the least

understood, and appreciated, of any provision contained in Chapter 9 by many a prospective

Managing Attorney.28

In re the Marketing to Prospective Plan Participants of a Chapter 9 Plan

Rule 9-3.1 Activities of Managing Attorneys provides, in relevant part, as follows:

“Managing attorneys and their employees or agents may: (b) upon board approval of a

plan, provide any written form of communication to members of the sponsor for the purpose of

informing them of the availability of said plan and inviting them to become plan participants

therein but only in accordance with the advertising and solicitation provisions of these Rules

Regulating The Florida Bar (emphasis supplied).”

This rule is, in the opinion of this writer, problematic, at best, and fatal, at worst, for any

Managing Attorney pursuing the creation of a successful Chapter 9 Plan.29

Relevant Administration Issues To Be Considered In The Operation Of A Chapter 9 Plan

With respect to the administration of a Chapter 9 Plan, this writer would offer the

following for the consideration of a prospective Managing Attorney, to-wit:

1.96 Rule 9-3.1 Activities of Managing Attorneys provides, in relevant part, as follows:

“Managing attorneys and their employees or agents may: (c) do any and all things necessary and proper in order to fully and completely administer the plan. . . .

Whereupon, this rule, by default -- by virtue of the last paragraph thereof -- requires the

Managing Attorney to so maintain “in-house” any and all such administrative activities with respect to a Chapter 9 Plan.

How To Make Chapter 9 Work For You: A Few Final Issues To Consider And Contemplate Before Embarking Upon The Crafting Of Your [Successful] Chapter 9 Plan

What Comes First: The Creation of a “Chapter 9 Plan” or a Sponsor?

Obviously, without the creation of a Chapter 9 Plan, there is no need for the prospective

Managing Attorney to reach out to a potential Sponsor; and, likewise, without having identified a potential Sponsor, there is no need for said Managing Attorney to so create a Chapter 9 Plan. So how is this dilemma reconciled and solved?

In brief, the solution is one of “degree”. Simply, the Managing Attorney should, first, create the general framework of the Chapter 9 Plan [e.g., legal services to be included and the amount of, and who pays, the fees] and, then, once a Sponsor is identified, negotiate the particular provisions of the Chapter 9 Plan to be so incorporated into the Agreement.

Use Rule 9-3.1(a) To Your Advantage to Gain Access To Prospective Sponsors

In light of the fact that the Chapter 9 Plan arena is one that tests the “entrepreneurial spirit” of a Managing Attorney, a prospective Managing Attorney should take full advantage of

1.97 Rule 9-3.1(a) in order to reach out to prospective Sponsors for the purpose of informing them of

the availability of a Chapter 9 Plan.

Embrace the Following Concept: “Less is More”

In brief, just because a Chapter 9 Plan may, e.g., limit the legal services to be included

thereunder to ONLY one particular area of law, does not mean that the Plan will not be

economically viable and successful.

Indeed, based upon the historical records of the Committee, some of the most successful

Chapter 9 Plans have been those which have focused on a single area of law [e.g., the

preparation of, only, simple Last Wills and Testaments] or a niche area of practice [e.g., defense

of traffic citations issued to cab drivers].

Consider the Concept of a “Springing Chapter 9 Plan” in Order to Enhance Your Prospects for Economic Success

In order to make the Chapter 9 Plan as economically viable as possible, the Managing

Attorney may consider the crafting of a “Springing Chapter 9 Plan”.

EXAMPLE

a. Employer30 has 1,000 employees.

b. Membership in the Chapter 9 Plan is “voluntary” [i.e., an employee chooses to

join the Chapter 9 Plan].

c. After the conduct of a “cost benefit analysis” of the Plan, the Managing Attorney determines that a minimum of 100 employees would be required to join the subject Chapter 9

Plan in order to make same economically viable for the Managing Attorney.

d. Whereupon, the Managing Attorney would then negotiate with the Sponsor to include a contractual provision in the Agreement fully and completely detailing that the Plan

1.98 shall commence operations at a time certain in the future [and, thus, “spring to life”] when said

required 100 employees have so joined the subject Chapter 9 Plan.

Conclusion

Although Chapter 9 Plans have been permitted to operate in Florida for the past half

century, few attorneys have taken advantage of the benefits afforded thereunder in order to, at

once, expand their overall private client base and afford Floridians the opportunity to better gain

access in and to the legal system.

As such, in the advent of the Post-COVID-19 world, this writer is hopeful that this article

will now encourage Florida attorneys in private practice to give due and serious consideration to

creating a Chapter 9 Plan and incorporating same into their practice as part of their law firm’s overall global business plan.

1.99

1 Upon so approving, in 1970, Article XIX of the Integration Rule (now known as Chapter 9 of the Rules Regulating The Florida Bar (“Chapter 9”)). 2 In brief, a Plan, by its very nature, serves as a conduit by and between Plan members and Plan attorneys whereby Plan members, simply by virtue of the existence of the Plan, have an increased ability to obtain legal services in order to, in turn, have the opportunity to better gain access in and to the legal system. 3 Please kindly note that a discussion relative to other methodologies serving to permit Floridians to have an increased ability to obtain legal services in Florida -- and, i.e., “Lawyer Referral Services” as authorized by and under Chapter 8 of the Rules; “Qualifying Providers” as authorized by and under Rule 4-7.22 of the Rules; and, “Legal Expense Insurance Corporations” as governed by and under Chapter 642, Florida Statutes -- is beyond the scope of this article. 4 Being a Public Service Standing Committee first created by the Board in 1974. 5 As of January 1, 2021, the Committee had oversight responsibility of some 15 approved Chapter 9 Plans. 6 To the best knowledge of this writer [who first began service on the Committee in 1985], the Board has never once revoked the authority to operate of an approved Chapter 9 Plan. 7 These forms may easily be accessed on The Florida Bar website [www.floridabar.org] upon, first, opening the “Public” tab in the “banner” line at the top; clicking on the “Prepaid Legal Services” link; and, then scrolling down to the heading entitled “CHAPTER 9 PLAN APPLICATION FORMS”, so listing thereunder each one of the ten (10) forms discussed below, as well as listing the 2 following described items, to-wit, “Chapter 9 Plan Application Packet Introduction” and “Application Packet Operating Rules”. 8 All of these forms went “live” on the Committee’s website on April 2, 2012. 9 As authorized by and under Rule 9-2.1. 10 As required to be included in the Plan Application by and under Rule 9-2.2(a). 11 And, i.e, all the Rules; and, NOT simply the “Chapter 9 Rules”. 12 As required to be included in the Plan Application by and under Rule 9-2.2(b). 13 In response to a frequently asked question, it is permissible under Chapter 9 ONLY for a “member in good standing of The Florida Bar (emphasis supplied)” [and, i.e., an individual] -- and NOT a law firm -- to act, and accept the responsibility, as a Managing Attorney of a Chapter 9 Plan. 14 Indeed, based upon the historical records of the Committee, there have been a number of Chapter 9 Plans approved by the Committee throughout the years wherein the Managing Attorney was the sole attorney involved in the operation of the subject approved Chapter 9 Plan. 15 See Rule 9-1.3 Definitions which provides, in relevant part, as follows: “(i) Sponsor. Sponsor shall mean a group that provides a plan for the benefit of its members.” 16 See Rule 9-1.3 Definitions which provides, in relevant part, as follows: “(d) Group. Group shall mean an organization of 2 or more persons whose individual members are identifiable in terms of some common interest or affinity (emphasis supplied)”. 17 Being generally referred to, historically, as the “Traditional Groups”. 18 Including provisions relating to, e.g., “Indemnification” and “Governing Law and Venue”. 19 As required by and under Rule 9-2.2(a)(8). 20 As required by and under Rule 9-2.2(a)(8), if applicable. 21 As required to be included in the Plan Application by and under Rule 9-2.2(c). 22 As required, by implication, by and under Rule 9-2.2(c)(1). 23 As required by and under Rule 9-2.2(a)(8).

1.100

24 As required by and under Rule 9-2.2(c)(1). 25 As required by and under Rule 9-2.2(c)(2). 26 Which said marketing is NOT permissible to the “public at large”. 27 Rule 9-3.1, in toto, provides to Managing Attorneys -- and their employees or agents -- notice of, and guidance on, the scope and extent of various marketing and administrative activities ethically permissible to be undertaken in the operation of a Chapter 9 Plan. 28 In brief, the heading entitled “Group or Prepaid Legal Services Plans” under the Comment to Rule 4-7.18 should certainly allay any concerns a prospective Managing Attorney may have with respect to the ethical propriety of the type of permissible “contact” so described in this Rule 9-3.1(a). 29 Whereupon, in order to not run afoul of the Bar’s advertising rules, a Managing Attorney may consider having the Sponsor simply provide any such “written form of communication” directly to its members. 30 Being one of the “Traditional Groups”, as so defined in Rule 9-1.3(d)(4).

1.101 1.102 1.103 1.104 1.105 1.106 1.107 1.108 1.109 1.110 1.111 1.112 1.113 1.114 1.115 LEGAL INSURANCE: PRACTICE AND PUBLIC SERVICE OPPORTUNITIES

Howard M. Rosenblatt, Gainesville Robert H. Jerry, II, Gainesville

2021 Annual Florida Bar Annual Convention Wednesday, June 9, 2021 ZOOM Webinar; Orlando, Florida

LEGAL INSURANCE IN FLORIDA: New Practice and Public Service Opportunities

HOWARD M. ROSENBLATT BOB JERRY HOWARD M. ROSENBLATT, P.A. DEAN-EMERITUS, UNIV. OF FLORIDA LEVIN COLLEGE OF LAW GAINESVILLE, FL GAINESVILLE, FL 2.1 Why legal insurance?

Legal insurance plans provide consumers with access to an attorney to help them with simple—and sometimes complex—legal matters, with the plan enabling the consumer to access the lawyer at a lower cost.

2.2 What is a legal insurance plan?

A legal insurance plan is a contract under which an insurer agrees, in exchange for a premium, to facilitate the provision of specified legal services to the insured (or certificate holder under a group plan) through a panel of attorneys on the terms and for the price specified in the contract.

2.3 What is a legal insurance plan?

“Insurance is a contract in which one party (the insurer), in exchange for a consideration (the premium) paid by the other party (the insured), assumes the other party’s risk and distributes it across a group of similarly situated persons, each of whose risk has been assumed in a similar transaction.” -- Robert H. Jerry, II & Douglas R. Richmond, Understanding Insurance Law (6th ed. 2018). FOUR ELEMENTS: (1) CONTRACT for (2) TRANSFER and (3) DISTRIBUTION of

(4) 2.4RISK Historically, insurance has been understood as covering accident risk, i.e., “fortuituous losses”

2.5 is the need for legal services an “accident” or a “fortuitous loss”?

2.6 the medical profession confronted a similar issue . . . .

2.7 . . . and it wasn’t obvious at the beginning that prepaid medical plans were “insurance”

2.8 the first prepaid health insurance plan

1929: a prepaid hospital plan at Baylor University Hospital, Waco, TX

invented by Justin Ford Kimball (lawyer, businessman, educator & Vice-President, Baylor Health System)

opposed by “medical establishment,” a precursor for what would happen with prepaid legal insurance

2.9 . . . and in the legal world, it wasn’t obvious at the beginning that legal services provided outside the traditional fee-for-service payment arrangement were ethical . . .

2.10 Legal aid societies, late 1800s-early 1900s

New York City Legal Aid, Broadway office, 1910

New York City Legal Aid, East Side, 1899

2.11 1908 report of ABA Committee of Professional Ethics

2.12 NAACP v. Button, 371 US 415 (1963)

Robert L. Carter 1917-2020 (2d from left) argued for the NAACP

2.13 Brotherhood of R.R. Trainmen v. Virginia, 377 US 1 (1964)

2.14 continued disagreement & turmoil in the 1960s and 1970s . mid-1960s: talk of a government-subsidized legal service program for the middle class, which the organized bar opposed (like organized medicine opposed Medicare) . ABA revisits the ethics rules (Wright Committee) . ABA studies unmet legal needs of middle class (McCalpin, or “Availability,” Committee) . ABA compromises by supporting government funding of legal services for poor, which became the Legal Services Program . the politics of group legal services remained intense, and then SCOTUS decided a 3rd case . . . .

2.15 United Mine Workers v. Illinois State Bar Association, 389 US 217 (1967)

2.16 . . . and the legal implications of the UMW decision dominated ABA politics for the next 10 years, until two breakthrough ethics opinions in the mid- 1980s . . .

2.17 ABA Comm. on Ethics & Prof. Resp., Informal Op. 85-1510 (1985)

2.18 ABA Comm. on Ethics & Prof. Resp., Informal Op. 87-355 (1987)

2.19 . . . and by 2000, it was fair to say that the organized bar’s earlier opposition to group legal services plans was gone . . .

2.20 2.21 prepaid legal insurance policies look like other common insurance policies

. an “insuring agreement” . definitions, including one for “Covered Legal Services” . eligibility provisions . policy limits (i.e., caps on amounts payable) . exclusions . conditions . claims processing procedures . etc. 2.22 the trend toward employer-provided financial wellness benefits

 “ . . . giving employees money management training and tools through a financial wellness program is a key workplace trend . . . . employers are likely to focus on the financial well-being of workers in a way that extends beyond retirement . . . “ (Stephen Miller, Soc’y for HR Mgmt, Jan. 17, 2017  “More employers feel responsible for helping improve employees’ financial wellness as workers experience more stress due to the COVID-19 pandemic, new research shows . . . .” (Stephen Miller, SHRM, Oct. 1, 2020)  62% of employers feel “extremely” responsible for their employees’ financial wellness, up from 13% in 2013 (according to Bank of America’s 2020 Workplace Benefits Report)  “Smart employers know that keeping quality employees requires providing the right compensation and benefits package . . . . “ (Kimberlee Leonard, CHE, April 10, 2018) 2.23 Rule 9-1.2 [For chapter 9 plans]: Statement of Policy and Purposes

Every citizen of this state should have access to the legal system. A person's ability to gain such access is enhanced by the assistance of and representation by an attorney duly licensed to practice law in this state. However, many persons simply do not seek legal assistance because of a failure to recognize the existence of a legal problem, inability to locate an attorney, fears of excessive cost of legal representation, or other reason. To this end, it is the policy of The Florida Bar to support the concept and to actively encourage the establishment, operation, growth, and development of legal services plans as one means of increasing a person's ability to obtain legal services at an affordable cost in order to have the opportunity to better gain access to the legal system. 2.24 “Chapter 9 Plans” vs. “Prepaid Legal Plans”

• Chapter 9: the participant prepays the provider for legal services that may be required in the future; in contrast to . . . • Prepaid Legal Plan: coverage for legal services is sold by an insurance company through an intermediary • A Chapter 9 Plan may be offered only to members of a group, but a Prepaid Legal Plan may be offered not only to members of a group but also to the general public at large • Both plans vary in cost, benefits, and the way in which the legal services are provided from traditional fee-for-service law practice • Both plans provide specified basic legal services at no additional cost and other services at discounted legal fee rates

2.25 Who are the parties to the plan?

 members (i.e., a “policyholder,” or, if a group plan, the holder of a certificate as a member of the group)

 attorneys

 the “plan administrator” (for Ch. 9), or the insurance company (for prepaid insurance plans)

2.26 How are prepaid legal service plans regulated?  By the state insurance department under the Legal Expense Insurance Act, Fl. Stat. §§ 642.011 et seq. (Note that in some states, but not Florida, Ch. 9-type plans are also considered “insurance” and are regulated as such by the state.)  Attorneys’ professional services are independently regulated by their individual state bar associations or supreme courts. In some states, the plan administrator must be registered with the state bar or some other authority.  If a plan is operated as an “employee welfare benefit plan” (i.e., if it is a fringe benefit in employment), it will be regulated under the Employee Retirement Income Security Act of 1974 (ERISA). 2.27 What are the characteristics of a “legal insurance plan”?  1. Individual subscribers or members of an insured group (e.g. employees of an employer, members of a union, etc.) are referred to a lawyer (or firm) participating in the legal plan’s panel (i.e., the “network”)—or the subscriber or group member contacts a lawyer or firm on the panel directly  2. The lawyer (or firm) provides free or low-cost advice and consultation (by telephone or in the office) to the subscriber or the group member

2.28 What are the characteristics of a “legal insurance plan”?

 3. If representation is required beyond this basic advice, the plan lawyer provides the additional services according to a pre-contracted plan fee schedule  4. Other key features -- . With groups, there’s no cost to the group or member for setting up the plan, i.e., it’s sold as a group insurance contract . A network of plan attorneys is available to the member . Easy member payment methods (e.g., payroll deduction) . Some plans pay the attorney directly 2.29 What services are provided by legal insurance plans? Most plans provide these basic services: . legal advice and consultation by telephone . review of simple legal documents . preparation of simple wills and/or short letters But some offer more comprehensive services, such as: . bankruptcy . divorce . real estate . traffic tickets

2.30 Why legal insurance?

 Legal plans enable individuals (e.g., employees) to protect their families, finances, and future  The plan’s network of attorneys removes concern about finding the right attorney  The plans eliminate the deterrent of initial consultation fees and high retainers

2.31 Why legal insurance?

 Depending on the plan, the process of paying attorney fees is easier  Depending on the plan, a reduced fee benefit may be provided for non-covered matters  When uncertain that a legal problem exists, consumers are more likely to talk to an attorney when they do not fear incurring high attorney fees

2.32 Why legal insurance?

 The consumer is able to know and understand up front what payments will be required through published attorney fees, lists of non-covered benefits, etc.  Customer service support exists if questions about the plan or the attorney arise  Members aren’t alone or “on their own” when trying to deal with their legal problems

2.33 recall the Florida Bar’s goals re affordable and accessible legal services . . . . . according to a U. of Chicago (NORC) survey commissioned by LSC, in 2017, 86% of civil legal problems reported by low-income Americans received inadequate or no legal help . 71% of low-income households experienced at least one civil legal problem, including problems with health care, housing conditions, disability access, veterans’ benefits, and domestic violence . in 2017, low-income Americans had an estimated1.7 million legal problems, but received limited or no legal help for more than half of them 2.34 recall the Florida Bar’s goals re affordable and accessible legal services . . . . . According to a 2012 Russell Research Study (commissioned by ARAG), in the general population, “three out of four people have experienced one or more legal issues in the past 12 months.” . “Eight out of 10 Americans are concerned about personal matters from a legal standpoint.” . “Three out of four people don’t have a plan to finance legal expenses.” 2.35 addressing affordable and accessible legal services “One of the ways that many Americans today are addressing legal matters is by enrolling in legal insurance plans. Legal plans have become one of the fastest growing voluntary employee benefits in the marketplace, and many leading companies and organizations are adopting legal plans to enhance employee benefit programs, as well as manage business costs. These plans provide convenient access to attorneys, legal services and resources, enabling people to resolve legal problems or even prevent them from happening. It’s one of the ways that people of all generations are changing with the times.” --Russell Research Study, “Legal Needs of Today’s Multi-Generational Workforce,” September 2008 (commissioned by ARAG) 2.36 addressing affordable and accessible legal services “Half of all U.S. citizens require the services of an attorney each year, according to the American Bar Association, and a growing number of them are turning to prepaid legal insurance plans to cover the rising costs of attorney assistance.” -- University of Louisville Human Resources, April 30, 2018

2.37 “This issue [making civil justice services more accessible to low- and moderate- income Floridians] is not just a legislative issue, not just an executive issue – it is a societal problem . . . And it is something society in general needs to fix . . . . Employers provide people with health insurance. Well, let’s provide them with legal insurance . . . . There is such a thing and it’s very inexpensive. Little things like that help take the stress off of what people are going through . . . .” --Justice Jorge Labarga, quoted in NorthEscambia.com (Jan. 19, 2015) 2.38 LEGAL INSURANCE IN FLORIDA: New Practice and Public Service Opportunities

Questions?

2.39 OVERVIEW OF THE “LEGAL EXPENSE INSURANCE ACT” [CHAPTER 642, FLORIDA STATUTES]

John Schaefer, Safety Harbor OVERVIEW OF THE “LEGAL EXPENSE INSURANCE ACT” [Chapter 642, Florida Statutes]

John Schaefer, Esq. Schaefer, Wirth & Wirth Safety Harbor, Florida

I. OVERVIEW OF LECTURE OUTLINE

At the outset, although it is now some 42 years since the Florida

Legislature, in 1979, passed the “Legal Expense Insurance Act” (the “Act”), this writer would opine that Florida attorneys have generally been unaware of, and oblivious to, the existence of legal expense insurance corporations -- as so codified in Chapter 642, Florida Statutes -- as one means to deliver legal services within the context of a legal services plan in the State of Florida in order to expand their overall private client base.

As such, this writer shall endeavor in this lecture outline to provide an introduction to, and a general overview of, the Act, and its requirements, upon describing and discussing the following described topics of relevance, to-wit:

A. Introduction to Chapter 642 [See paragraph II, below].

B. General requirements to organize and operate a Chapter 642 Company [See paragraph III, below].

C. Role of The Florida Bar in the Chapter 642 Company application process [see paragraph IV, below].

D. Administrative rules implementing Chapter 642 [See paragraph V, below].

E. Relevant Chapter 642 Caselaw [see paragraph VI, below].

F. Chapter 642 vs. Chapter 9: A Comparison [See paragraph VII, below].

3.1 II. INTRODUCTION TO CHAPTER 642

A. Enabling Legislation

1. In 1979, the Florida Legislature passed the “Legal

Expense Insurance Act”, enacted as Chapter 642, Florida Statutes, [providing authority for the organization of a legal expense insurance corporation

(hereinafter referred to as “Chapter 642 Company”)].

2. Section 642.011 provides that Sections 642.011-642.049 may be cited as the “Legal Expense Insurance Act”.

B. Purpose

Section 642.013 provides that the purpose of the Legal

Expense Insurance Act is to:

“authorize certification and regulation of certain organizations which provide programs for the payment of the costs of legal services or provide legal services (emphasis supplied).”

C. “Legal Expense Insurance” Defined

Section 642.015(3) defines “Legal expense insurance” to mean:

“a contractual obligation to provide specific legal services, or to reimburse for specific legal expenses, in consideration of a specified payment for an interval of time, regardless of whether the payment is made by the beneficiaries individually or by a third person for them, but does not include the provision of, or reimbursement for, legal services incidental to other insurance coverages (emphasis supplied).”

3.2 D. “Legal Expense Insurance” Exemptions

Section 642.017 provides as follows:

“The provisions of the Florida Insurance Code do not apply to:

(1) Retainer contracts made by attorneys at law with individual clients with fees based on estimates of the nature and amount of services to be provided to the specific client and similar contracts made with a group of clients involved in the same or closely related legal matters.

(2) Any lawyer referral service authorized by The

Florida Bar.

(3) The furnishing of legal assistance by labor unions or other employee organizations to their members in matters relating to employment or occupation.

(4) The furnishing of legal assistance to members, or their dependents, by a church, cooperative, educational institution, credit union, or organization of employees, in which the organization contracts directly with a lawyer or law firm for the provision of legal services and the administration and marketing of such legal services are conducted wholly by the organization1.

(5) Employee welfare benefit plans to the extent that state laws are superseded by the Employee Retirement Income Security Act of

1974, 29 U.S.C. s. 1144, provided evidence of exemption from state laws is shown to the office (emphasis supplied).”

1 Being generally referred to, historically, as the “Chapter 9 Exemption” [See Chapter 9 of the Rules Regulating The Florida Bar].

3.3 III. GENERAL REQUIREMENTS TO ORGANIZE AND OPERATE A CHAPTER 642 COMPANY

In general, the requirements to organize and operate a Chapter

642 Company are contained in Chapter 642, Florida Statutes.

A. Section 642.019(1) provides that:

“Any number of corporations or adult natural persons may organize a legal expense insurance corporation under the law of this state relating to corporations generally (emphasis supplied).”

B. Section 642.021(1) provides that it is unlawful for any person to engage in a legal expense insurance business in the State of Florida without a valid certificate of authority issued by the Florida Department of

Insurance (the “Department”), by and through the Florida Office of Insurance

Regulation (the “Office”).

C. Section 642.022 provides that a legal expense insurance corporation shall transact insurance business only in the nature of legal expense insurance in the State of Florida.

D. Section 642.023(1) provides that to assure the faithful performance of its obligations in the event of insolvency, a legal expense insurance corporation shall, prior to the issuance of its certificate of authority, deposit, and maintain, with the Department securities in the amount of

$50,000.00 for at least the first full year of operation.

3.4 IV. ROLE OF THE FLORIDA BAR IN THE CHAPTER 642 APPLICATION PROCESS

Section 642.021(3) provides that copies of the following described

documents shall be filed with The Florida Bar within 5 days after filing with the

Office, to-wit:

A. Those such documents so described in Section

642.021(2)(f), to-wit:

“The forms to be used for any proposed contracts between the corporation and participating attorneys or between the corporation and corporations which perform administration, marketing, or management services and the forms relating to the provision of services to insureds.”

B. Those such documents so described in Section

642.021(2)(i), to-wit:

“Forms of all legal service contracts the applicant proposes to offer showing the rates to be charged for each form of contract.”

V. ADMINISTRATIVE RULES IMPLEMENTING CHAPTER 642

In general, the rules implementing the provisions of Chapter 642

are contained in Chapter 69O-201 [Legal Expense Insurance Corporations],

Florida Administrative Code2.

1. Rule 69O-201.001 Purpose and Scope.

NOTE: Section repealed effective May 25, 2021.

2. Rule 69O-201.005 Financial Requirements Regarding the Unearned Premium Reserve Liability Account and the Deposit or Bond.

NOTE: Section amended effective May 25, 2021.

2 See the accompanying appendix for a copy of said rules, all effective May 25, 2021.

3.5 3. Rule 69O-201.008 Application for Certificate Authority and Annual Renewal.

NOTE: Section amended effective May 25, 2021.

4. Rule 69O-201.010 License Continuance.

NOTE: Section repealed effective May 25, 2021.

5. Rule 69O-201.012 Annual Statement and Quarterly Statements.

NOTE: Section amended effective May 25, 2021.

6. Rule 69O-201.015 Forms Incorporated by Reference.

NOTE: Section repealed effective May 25, 2021.

VI. And Justice for All, Inc., v. Florida Department of Insurance, 799 So.2d 1076 (Fla. 1st DCA 2001)

This was a case of first impression in the State of Florida.

In brief, the Florida Department of Insurance (the “Department”)

issued a “Notice of Intent to Issue Cease and Desist Order” against And

Justice For All, Inc, d/b/a Legal Club of America (“Legal Club”) alleging that

Legal Club was selling legal expense insurance in the State of Florida without

properly being licensed by and under the provisions of Chapter 642, Florida

Statutes.

3.6 Upon transfer of this case to the Division of Administrative

Hearings, the administrative law judge (ALJ), in the recommended order, found

that:

All legal expense insurance companies licensed in Florida share a common characteristic that distinguishes them from Legal Club: they all either reimburse policyholders for legal expenses incurred or pay attorneys to provide legal services to policyholders (emphasis supplied).

Accordingly, the ALJ concluded that Legal Club was not subject

to regulation by the Department.

The Department then issued a Final Order rejecting several of the

ALJ’s findings of fact and conclusions of law and determined that Legal Club was selling legal expense insurance without proper licensure.

On appeal, the First District found that:

The basics of the plans at issue are that a club member pays an annual membership fee and receives a referral from Legal Club to a plan attorney who has agreed to abide by a schedule of free and discounted services. When a legal issue arises, the member contacts the attorney directly. The plan members are also responsible for payment directly to attorneys of all legal fees incurred. Legal Club does not pay participating attorneys any fee for accepting referrals or for participating in the plan. The only thing Legal Club provides to plan members is a referral to a plan attorney (emphasis supplied). 799 So.2d at 1078.

Because competent substantial evidence supported the ALJ’s

finding that Legal Club only provided a referral, the First District held that the

Department improperly rejected that determination; and, thus, accordingly,

REVERSED the order on appeal and REMANDED the cause for the entry of an

order consistent with this opinion.

3.7 VII. CHAPTER 642 vs. CHAPTER 9: A COMPARISON

For the hopeful benefit of any Florida attorney contemplating the delivery of legal services within the context of a legal services plan in the State of Florida, this writer shall now take the opportunity in this lecture outline to highlight some relevant comparisons by and between a Chapter 642 Company and a Chapter 9 Plan, as follows:

♦ ONLY “adult natural persons” [or “corporations”] may organize a Chapter 642 Company.

ONLY a “member in good standing of The Florida Bar” may act, and accept the responsibility, as a Managing Attorney of a Chapter 9 Plan.

♦ UNLAWFUL to operate a Chapter 642 Company without first obtaining a valid “Certificate of Authority” issued by the Florida Department of Insurance.

NOT PERMITTED for a Managing Attorney to operate a Chapter 9 Plan in the State of Florida without first obtaining approval therefor by the Board of Governors of The Florida Bar.

♦ A Chapter 642 Company may transact insurance business ONLY in the nature of “legal expense insurance” in the State of Florida.

A Chapter 9 Plan may ONLY provide legal services to Sponsors whose Plan Participants reside in the State of Florida.

♦ A Chapter 642 Company, prior to the issuance of its “Certificate of Authority”, MUST deposit, and maintain, with the Florida Department of Insurance, securities in the amount of $50,000.00 for at least the first full year of operation.

Any attorney providing legal services by and under a Chapter 9 Plan MUST have a professional liability insurance policy issued in favor of said attorney in an amount not less than $100,000.

3.8 ♦ A Chapter 642 Company may offer its contracts of “legal expense insurance” to, BOTH, “groups” and “individuals”.

A prospective Managing Attorney may offer a Chapter 9 Plan ONLY to a “group”.

VIII. CONCLUSION

In conclusion, this writer trusts that this lecture outline, including the reference materials contained in the accompanying appendix, as well as the presentation today, will now encourage Florida attorneys to give due and serious consideration to the organization of a legal expense insurance corporation by and under the provisions of Chapter 642,

Florida Statutes.

3.9 APPENDIX

A. Chapter 642, Florida Statutes

B. Chapter 69O-201, Florida Administrative Code

C. Listing of 642 Companies1 [Company Directory: Search Results (LEGAL EXPENSE INSURANCE)]

D. “Application for Certificate of Authority Legal Expense Insurance”2

E. And Justice for All, Inc., v. Florida Department of Insurance, 799 So.2d 1076 (Fla. 1st DCA 2001)

1 All as licensed by the Florida Department of Insurance, by and through the Florida Office of Insurance Regulation. 2 “Face Page”, for illustration purposes, only, as provided by the Florida Office of Insurance Regulation .

3.10 6t3t2021 Statutes & Constitution :View Statutes : Online Sunshine

Setect Year: iOZO - @

The 2o2o Florida Statutes

Title )fiXVll Chapter 642 View Entire Chaptet INSURANCE LEGAL EXPENSE INSURANCE CHAPTER 642 LEGAL EXPENSE INSURANCE

642.011 Short title. 642.013 Purpose. 642.015 Definitions. 642.016 Chapter exclusive; appticabitity of other laws. 642.017 Exemptions. 642,019 Organization of [ega[ expense insurance corporations. 642.021 Certificate of authority. 642.022 lnsurance business not authorized. 642.023 Required deposit or bond. 642.024 Levy upon deposit. 642.025 Poticy and certificate forms. 642.0261 Net worth required of appticants. 642.0262 Net worth required to maintain certificate of authority. 642.027 Premium rates. 642.029 Contracts by insurers. 642.0301 Fiting, license, statement, and miscetlaneous fees. 642.032 Provisions of general insurance taw applicable to [ega[ expense insurance corporations. 642.0331 Grounds for suspension or revocation of certificate. 642.0334 Order; notice of suspension or revocation of certificate; effect; pubtication. 642.0336 Duration of suspension; obtigations during suspension; reinstatement. 642.0338 Administrative fine in lieu of suspension or revocation. 642.034 License and appointment required. 642.036 Sales representatives to be licensed and appointed. 642.038 Reporting and accounting for funds. 642.041 Grounds for compulsory refusal, suspension, or revocation of ticense or appointment of contracting sales representatives. 642.043 Grounds for discretionary refusal, suspension, or revocation of license or appointment of sates representatives. 642.045 Procedure for refusal, suspension, or revocation of license and appointment of sales representative; departmental action upon viotation by ticensed insurance agent. 642.047 Administrative fine in lieu of suspension or revocation of ticense or appointment. 642.0475 Civil remedy. 642.048 Prohibited sales. 642.049 Construction.

642.011 Short title.-Sections 642.01 1-642.049 may be cited as the "Legal Expense lnsurance Act."

www.leg.state.fl.us/statutes/index.cfm?App_mode=Display-Statute&URL=0600-0699/0642U0642.htm13.11 1111 61312021 Statutes & Constitution :View Statutes : Online Sunshine History.-s.1, ch.79-103; s.2, ch.81-318; ss.20,21, ch.83-278; ss.6,7, ch.93-147.

642.013 Purpose.-The purpose of ss. 642.011-642.049 is to authorize certification and regutation of certain organizations which provide programs for the payment of the costs of tegal services or provide [ega[ services. History.-s. 1, ch.79-103; s.2, ch.61-318; ss.20,21, ch.83-278; ss.6,7, ch.93'147.

642.015 Definitions.-As used in ss.642.011-642.049, the term: (1) "Gross written premiums" means the total amount of premiums paid by the consumer for the entire period of the legal expense insurance contract, inctuding commissions. (2) "lnsurer" means any person authorized to conduct a life or casualty insurance business in this state or a legal expense insurance corporation authorized under ss. 642.011-642.049. (3) "Legal expense insurance" means a contractuat obligation to provide sPecific [ega[ services, or to reimburse for specific tegat expenses, in consideration of a specified payment for an interval of time, regardless of whether the payment is made by the beneficiaries individuatty or by a third person for them, but does not include the provision of, or reimbursement for, legal services incidental to other insurance coverages. History.-s.1, ch.79-103; s.2, ch.81-318; ss.1,20,21,ch.83-278; ss.1,6,7,ch.93-147; s.1634, ch.2003-261.

642.016 Chapter exclusive; applicability of other laws.-Except as provided in this chapter, [ega[ expense insurance corporations shatl be governed by this chapter and shatl be exempt from atl other provisions of the Ftorida lnsurance Code. History.-ss. 29, 52, ch. 85-321 ; ss. 6, 7, ch. 93-147.

642.017 Exemptions.-The provisions of the Ftorida lnsurance Code do not appty to: (1) Retainer contracts made by attorneys at law with individuat ctients with fees based on estimates of the nature and amount of services to be provided to the specific ctient and simitar contracts made with a group of ctients invotved in the same or closely related [ega[ matters. (2) Any lawyer referral service authorized by The Florida Bar. (3) The furnishing of tegat assistance by labor unions or other emptoyee organizations to their members in matters relating to employment or occupation. (41 The furnishing of legal assistance to members, or their dependents, by a church, cooperative, educational institution, credit union, or organization of emptoyees, in which the organization contracts directly with a tawyer or law firm for the provision of tegat services and the administration and marketing of such tegat services are conducted whotty by the organization. (5) Employee welfare benefit plans to the extent that state taws are superseded by the Emptoyee Retirement lncome Security Act of 1974,79 U.S.C. s. 1144, provided evidence of exemption from state laws is shown to the office. History.-s. 1, ch.79-103; s.2, ch.81-318; ss.2,20,21, ch.83-27Eiss.6,7,ch.93-147; s. 1635, ch.2003-261.

642.019 Organization of legal expense insurance corPorations.- (1) Any number of corporations or adult naturat persons may organize a legal expense insurance corporation under the law of this state retating to corporations generatly. (2) The articles of incorporation shatl conform to the requirements appticabte to corporations, and, in addition: (a) The name of the corporation shall indicate that [ega[ services or indemnity for legal expenses is to be provided; and (b) The purposes of the corporation shatt be limited to providing legat services or indemnity for legat expenses and business reasonabty retated thereto. History.-s. 1, ch. 79-103; s. 2, ch. 81-318; ss. 3, 20, 21, ch. 83'278; ss' 6, 7, ch. 93-147. 642.021 Certificateofauthority.- (1) lt is untawfut for any person to engage in a legat expense insurance business in this state without a valid certificate of authority issued by the office, pursuant to ss. 642.011-642.049, excePt that a domestic, foreign, or atien insurer authorized to transact life or casualty insurance in this state may transact legat expense insurance 3.12 www.leg.state.fl.us/statutes/index.cfm?App_mode=Display-Statute&URL=0600-0699/06420642.htm1 2111 6t312O21 Statutes & Constitution :View Statutes : Online Sunshine provided it complies with the appticabte provisions of ss. 642.011-642.049. A certificate of authority under ss. 642.011-642.049 may be issued only to a legal expense insurance corporation. (2) The corporation shatt fite with the office an apptication for a certificate of authority upon a form adopted by the commission and furnished by the office, which shatl include or have attached the following: (a) The names, addresses, and occupations of a[[ directors and officers and of each sharehotder who owns or controts 10 percent or more of the shares of the appticant corporation. (b) A certified copy of the corporate articles and bylaws and, for the 3 most recent years, the annuat statements and reports of the corporation (c) Each agreement relating to the corporation to which any director or officer, or any shareholder who owns or controls 10 percent or more of the shares of the corporation, is a party. (d) A statement of the amount and sources of the funds avaitabte for organization exPenses and the proposed arrangements for reimbursement and compensation of incorporators or other persons. (e) A statement of compensation to be provided directors and officers. (f) The forms to be used for any proposed contracts between the corporation and participating attorneys or between the corporation and corporations which perform administration, marketing, or management services and the forms relating to the provision of services to insureds. (g) The ptan for conducting the insurance business, which ptan shatl include atl of the foltowing: 1. The geographicat area in which business is intended to be conducted in the first 5 years. Z. The types of insurance intended to be written in the first 5 years, inctuding specification whether and to what extent indemnity rather than service benefits are to be provided. 3. The proposed marketing methods. (h) A current statement of the assets and tiabitities of the corporate applicant. (i) Forms of att tegat service contracts the applicant proposes to offer showing the rates to be charged for each form of contract. (t) Such other documents and information as the commission or office may reasonabty require. (3) Copies of the documents filed pursuant to paragraphs (f) and (i) of subsection (2) shatt be fited with The Florida Bar within 5 days after fiting with the office. (41 The office shall issue a certificate of authority onty to a [ega[ expense insurance corporation, provided it is satisfied that: (a) At[ requirements of law have been met; (b) Att naturat persons who are directors and officers, and each shareholder who owns or controts 10 percent or more of the shares of the appticant corporation, are trustworthy and cotlectively have the comPetence and experience to engage in the particular insurance business proposed; and (c) The business ptan is consistent with the interests of potential insureds and of the pubtic. History.-s. 1, ch.79-'103; s.2, ch.81-318; ss.4,20,21, ch.83-278; ss.2,6,7,ch.93-147; s' 1636' ch.2003'261.

642.022 lnsurance business not authorized.-Nothing in the Ftorida lnsurance Code or this chapter shatt be deemed to authorize any tegal expense corporation to transact any insurance business other than that of legal expense insurance or to otherwise engage in any other type of insurance untess it is authorized under a certificate of authority issued by the office under the provisions of the Ftorida lnsurance Code. History.-ss. 30, 52, ch. 85-321; ss. 6, 7, ch. 93'147; s. 1637, ch. 2003'261.

642.023 Required deposit or bond.- (1 ) To assure the faithfut performance of its obtigations in the event of insotvency, each legat expense insurance corporation, prior to the issuance of its certificate of authority, shatl deposit and maintain with the department securities of the type etigibte for deposit by insurers under s. 625.52, which securities shatt be hetd in trust and shalt have at al.l times a market vatue in the amount specified. Whenever the market vatue of the securities deposited with the department is less than 95 percent of the amount of the deposit required, the insurer shatt deposit additionat securities or otherwise increase the deposit to the amount required. The initial deposit for 3.13 www.leg.state.fl.us/statutes/index.cfm?App-mode=Display-Statute&URL=0600-0699/0642|/0642'html 3t11 61312021 Statutes & Constitution :View Statutes : Online Sunshine a corporation shalt be in the amount of 550,000 for at least the first futl year of operation. The amount of the initiat deposit shatl be adjusted annuatty thereafter on October 1 as fottows: (a) Each corporation having in force 5300,000 or less of gross written premiums shall deposit with the department an amount equat to 530,000. (b) Each corporation having in force more than 5300,000 of gross written premiums, but less than $750,000, shatt deposit with the department an amount equal to S75,000. (c) Each corporation having in force more than 5750,000 of gross written premiums shatl deposit with the department an amount equal to S100,000. (Zl ln tieu of any deposit of securities required under subsection (1 ) and subject to the approval of the office, a [ega[ service insurance corporation may fite with the office a surety bond issued by an authorized surety insurer. The bond shatL be for the same purpose as the deposit in lieu of which it is fited. The office may not aPProve any bond under the terms of which the protection afforded against insotvency is not equivatent to the protection afforded by those securities provided for in subsection (1 ). (3) Securities or bonds deposited pursuant to this section shatt be for the benefit of, and subject to, action thereon by any person sustaining an actionabte injury due to the faiture of the corporation to faithfutty perform its obtigations to its insureds in the event of insolvency or impairment of any legal expense insurance corporation. (41 The state shatt be responsibte for the safekeeping of atl securities deposited with the department under ss. 642.011-642.049. Such securities are not, on account of being in this state, subject to taxation, but shatt be hetd exctusivety and sotety to guarantee the performance by the legal expense insurance corporation of its obtigations to its insureds. (5) Such deposit or bond shatt be maintained unimpaired as long as the legat expense insurance corporation continues to do business in this state. Whenever the corporation ceases to do business in this state and furnishes proof satisfactory to the office that it has discharged or otherwise adequatel.y provided for atl its obtigations to its insureds in this state, the office and department shatl retease the deposited securities to the parties entitted thereto, on presentation of the receipts of the department for such securities, or shatl retease the bond fited with it in lieu of such deposit. (6) The office, upon written request of the tegal expense insurance corporation, may reduce the amount of deposit or bond required under subsection (1) if it finds that the poticyhotders and certificateholders of the corporation are adequatety protected by: (a) The terms and number of existing contracts with subscribers; (b) Financial guarantees of financialty sound pubtic or private organizations or agencies; (c) Other retiabte financiat guarantees; or (d) Ptan attorney agreements that provide for fult ptan benefits to subscribers without additionat payments by the subscribers if the plan terminates. (71 The office may at any time enter an order modifying the amount of the deposit or bond specified under subsection (1) or subsection (2) if it finds that there has been a substantial change in the facts on which the determination was based. History.-s. 1, ch.79-103; s.2, ch.81-318; ss. 5,20,21, ch.83-278; s. 184, ch.91-'108; ss.6,7, ch.93'147; s. 1638, ch.2003-26'1.

642.024 Levy upon deposit.-No judgment creditor or other claimant of a tegal exPense insurance corporation shatt have the right to tevy upon any of the assets or securities hetd in this state as a deposit under s. 642.023. History.-ss. 41, 52, ch. 85'321 ; ss. 6, 7, ch. 93'147.

642.025 Policy and certificate forms.- (1) Legat expense insurance may be written as individuat, group, btanket, or franchise insurance. Each contractuat obtigation for tegat expense insurance shatt be evidenced by a policy. Each person insured under a group poticy shall be issued a certificate of coverage. (2) No poticy or certificate of tegal, expense insurance may be issued in this state untess a copy of the form has been fited with and approved by the office pursuant to s. 627.410- 3.14 www.leg.state.fl.us/statutes/index.cfm?App-mode=Display-Statute&URL=0600-0699/0642/0642.htm1 4111 6t3t2021 Statutes & Constitution :View Statutes : Online Sunshine (3) The office shatt not approve any poticy or certificate form which does not meet the fottowing requirements: (a) Poticies shatt contain a tist and description of the [ega[ services to be supptied or the tegal matters for which expenses are to be reimbursed and any timits on the amounts to be reimbursed. (b) Poticies and certificates shatl indicate the name of the insurer and the fut[ address of its principal ptace of business. (c) Certificates issued under group poticies shatl contain a futl statement of the benefits provided and exceptions thereto but may summarize the other terms of the master poticy. (d) Poticies providing for tegat services to be supptied by a timited number of attorneys who have executed provider contracts with the insurer, whether the attorney in an individual case is to be setected by the insured or by the insurer, shatl provide for atternative benefits if the insured is unable to find a participating attorney witting to perform the services or the attorney setected by the insurer is disquatified or otherwise unabte to perform the services. The atternative benefit may consist of furnishing the services of an attorney setected and paid by the insurer or paying the fee of an attorney selected by the insured. The poticy shatt also provide a procedure that inctudes impartial review for settting disagreements concerning the grounds for demanding an atternative benefit. (e) No poticy, except one issued by a mutual or reciprocal insurance company, may provide for assessments on poticyhotders or for reduction of benefits for the purpose of maintaining the insurer's solvency. (f) Poticies shalt contain a statement that the subscriber has a right to file a comptaint with The Florida Bar concerning attorney conduct pursuant to the plan. (g) Poticies shatt contain a statement that the individuat beneficiary has the right to retain, at his or her own expense, except when the poticy provides otherwise, any attorney authorized to practice taw in this state. (4) The office may disapprove a poticy or certificate form if it finds that the form: (a) ls unfair, unfairly discriminatory misteading, or ambiguous or encourages misrepresentation or misunderstanding of the contract; (b) Provides coverage or benefits or contains other provisions that woutd endanger the sotvency of the insurer; or (c) ls contrary to taw. History.-s. 1, ch.79-103; s.2, ch.81-318; ss.6,20,21,ch.83-778;ss.6,7,ch.93-147; s.495, ch.97-102; s. 1639, ch.2003-261.

642.0261 Net worth required of applicants.-To receive authority to transact legat expense insurance, an appticant apptying for a certificate of authority after October 1,1993, must possess a net worth not tess than the greater of: (1) Ten thousand dottars; or (2) Ten percent of the applicant's totat tiabitities. History.-ss. 3, 7, ch. 93-147,

642.0262 Net worth required to maintain certificate of authority.-To maintain a certificate of authority to transact [ega[ expense insurance, a legat expense insurance corporation must maintain a net worth of not less than the greater of: (1 ) Ten thousand dollars; or (2) Ten percent of the insurer's total tiabitities. History.-ss. 4, 7, ch. 93-147; s. 83, ch. 2000'158.

642.027 Premium rates.-No poticy of tegat expense insurance may be issued in this state untess the premium rates for the insurance have been fited with and approved by the office. Premium rates shat[ be established and justified in accordance with generalty accepted insurance principtes, inctuding, but not limited to, the experience or judgment of the insurer making the rate fiting or actuarial computations. The office may disapprove rates that are excessive, inadequate, or unfairty discriminatory. Rates are not unfairty discriminatory because they are averaged broadty among persons insured under group, btanket, or franchise poticies. The office may require the submission of any other information reasonably necessary in determining whether to approve or disapprove a fiting made under this section or s. 642.025. 3.15 www.leg.state.fl.us/statutes/inAex.cfm?ipp-mode=Display-Statute&URL=06004699/0642/0642'html 5t11 61312021 Statutes & Constitution :View Statutes : Online Sunshine History.-s. 1, ch.79-103; s. 2, ch.81-318; ss.20, 21, ch. 83-278; ss.6, 7, ch.93-147;s.1640, ch. 2003-261.

642.029 Contracts by insurers.- (1) Contracts made between the insurer and participating attorneys, management contracts, or contracts with providers of other seryices covered by the legat expense insurance poticy shatt be fited with and approved by the office. (Zl An insurer shatl annuatly report to the office the number and geographicat distribution of attorneys and providers of other services covered by the legat expense insurance poticy with whom it maintains contractual relations and the nature of the retations. The office may require more frequent reports from an insurer or group of insurers. History.-s.1,ch.79-103;s.2,ch.81-316;ss.7,20,21,ch.83-278;ss.6,7,ch.93-147;s.1641, ch.2003-261.

642.0301 Filing, license, statement, and miscellaneous fees.- (1) Every tegat expense insurance corporation must pay to the office the fotlowing fees: (a) Certificate of authority of legat expense insurance corporation. Fiting application for original certificate of authority, inctuding att accompanying documents, fiting fee. 5250 (b) Annual license fee for tegal expense insurance corporations. Sroo (c) Statements of [ega[ expense insurance corporation: 1. Annuatstatgmgnt...... 51OO Z. Quarterty statement. 5zs (2) For any service not described in subsection (1 ), the fee is that prescribed in s. 624.501. History.-ss. 5,7, ch. 93-147; s. 1642, ch. 2003-261.

642.032 Provisions of general insurance law applicable to legal expense insurance corporations.-The following provisions of the Florida lnsurance Code shatl appty to legat expense insurance corporations, to the extent that they are not inconsistent with the provisions of ss. 642.011-642.049: (1) Chapter 624, administration and generat provisions. (2) Chapter 625, accounting, investments, and deposits. (3) Chapter 626, part lX, unfair insurance trade practices. (41 Chapter 627, part l, rates and rating organizations, and part ll, the insurance contract. (5) Section 628.4615, speciatty insurers; acquisition of controlting stock, ownership interest, assets, or controt; merger or consolidation. (6) Chapter 631, insurer insolvency; guaranty of payment. History.-s. 1, ch.79-103; s.2, ch.81-318; ss.8,20,21, ch.83-278; s. 15, ch.86-250; s. 10, ch. 90-248; s. 131, ch.91-108; ss.6,7, ch. 93-147; s. 8, ch. 2001-64.

642.0331 Grounds for suspension or revocation of certificate.- (1 ) The certificate of authority of an insurer, whether issued pursuant to this chapter or the insurance code, may be revoked or suspended, or the office may refuse to renew a certificate of authority, if the office determines that the insurer: (a) Has viotated any lawful rute or order of the commission or office or any provision of this chapter. (b) ls in an unsound financiat condition which would render its further transaction of business in this state hazardous or injurious to its policyholders, its certificatehotders, or the pubtic. (c) ls using such methods or practices in the conduct of its business so as to render its further transaction of business in this state hazardous or injurious to its poticyhotders, its certificatehotders, or the pubtic. (d) Has refused to be examined or to produce its accounts, records, or fites for examination, or if any of its officers have refused to give information with respect to its affairs or have refused to perform any other [ega[ obtigation as to such examination, when required by the office. (e) Has faited to pay any finat judgment rendered against it in this state within 60 days after the judgment became final.

3.16 www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/06420642.htm1 6111 6t312021 Statutes & Constitution :View Statutes : Online Sunshine (f) Without just cause has refused to pay proper ctaims or perform services arising under its poticies or contracts; without just caube has competled poticyholders or certificatehotders to accePt less than the amount due them; or has emptoyed attorneys, or has brought suit against the association, to secure futt payment or setttement of such ctaims. (g) ls affitiated with, and under the same general management or interlocking directorate or ownership as, another insurer which transacts business in this state without having a certificate of authority. (2) The office may, pursuant to s. 120.60, in its discretion and without advance notice or hearing thereon, immediately suspend the certificate of any insurer, whether such certificate was issued pursuant to this chapter or the insurance code, if it finds that one or more of the fotlowing circumstances exist: (a) The insurer is insolvent or impaired. (b) The deposit required by s. 642.023 is not being maintained. (c) Proceedings for receivership, conservatorship, or rehabititation or other detinquency proceedings regarding the insurer have been commenced in any state. (d) The financial condition or business practices of the insurer otherwise pose an imminent threat to the pubtic heatth, safety, or welfare of the residents of this state. History.-ss. 9, 21, ch. 83-278; ss. 6, 7, ch. 93-147i s. 1643, ch. 2003'261.

642.0334 Order; notice of suspension or revocation of certificate; effect; publication.- (1) Suspension or revocation of a certificate of authority of an insurer sha[[ be by order of the office mailed to the corporation by registered or certified mait. The office atso shatl promptty give notice of such suspension or revocation to the sales representatives in this state of the corporation who are of record in the office of the office. The insurer shall not solicit or write any new contracts in this state during the period of any such suspension or revocation. (2) ln its discretion, the office may cause notice of the revocation or suspension to be pubtished in one or more newspapers of general circulation pubtished in this state. History.-ss. 10, 21, ch. 83-278; sy.6,7, ch.93-147; s. 1644, ch. 2003'261.

642.0336 Duration of suspension; obligations during suspension; reinstatement.- (1 ) Suspension of an insurer's certificate of authority shatt be for such period, not to exceed 1 year, as is fixed in the order of suspension, untess such suspension or the order upon which the suspension is based is modified, rescinded, or reversed. (2) During the period of suspension, the insurer shatt fite its annual statement and pay fees as required under this chapter as if the certificate of authority had continued in futt force. (3) Upon expiration of the period of suspension, if within such period the certificate of authority has not otherwise terminated, the certificate of authority shatt automaticatly be reinstated, untess the causes of the suspension have not been removed or the insurer is othenrrise not in compliance with the requirements of this chapter. (41 Upon reinstatement of an insurer's certificate of authority fottowing suspension, the authority of the sates representatives in this state to represent the insurer shall be reinstated. History.-ss. 11,21 , ch. 83-278; ss.6,7, ch.93'147.

642.0338 Administrative fine in lieu of suspension or revocation.- (1) lf the office finds that one or more grounds exist for the revocation or suspension of a certificate of authority issued under this chapter, the office may, in lieu of such suspension or revocation, impose a fine upon the insurer. (2) With respect to any nonwitlful violation, such fine shatl not exceed 51,000 per viotation. ln no event shatt such fine exceed an aggregate amount of $5,000 for a[[ nonwittful viotations arising out of the same action. When an insurer discovers a nonwittfut violation, the insurer shalt correct the violation and, if restitution is due, make restitution to att affected persons. Such restitution shatt inctude interest at 12 percent per year from either the date of the viotation or the date of inception of the affected person's poticy, at the insurer's option. The 3.17 www.leg.state.fl.us/statutes/index.cfm?App_mode=Display-statute&URL=06004699/06420642.htm1 7111 6lgt2121 Statutes & Constitution :View Stalutes : Online Sunshine restitution may be a credit against future premiums due provided that the interest on the restitution witt accumutate until, the premiums are due. lf the amount of restitution due to any person is S50 or more and the insurer wishes to credit it against future premiums, the insurer shatt notify such person that it wishes to do so but that the person may receive a check instead of a credit. lf the credit is on a poticy which is not renewed, the insurer shatt pay the restitution to the person to whom it is due. (3) With respect to any knowing and wittfut violation of an order or rute of the office or commission or a provision of this chapter, the office may impose a fine upon the insurer in an amount not to exceed 55,000 for each such viotation. ln no event shall such fine exceed an aggregate amount of 525,000 for alt knowing and wittfut viotations arising out of the same action. ln addition to such fines, such insurer sha[[ make restitution when due in accordance with the provisions of subsection (2). (4) The faiture of an insurer to make restitution when due as required under this section constitutes a wiltfut violation of this chapter. However, if an insurer in good faith is uncertain as to whether any restitution is due or as to the amount of such restitution, it shatt promptty notify the office of the circumstances, and the failure to make restitution pending a determination thereof witt not constitute a viotation of this chapter. History.-ss. 12,21, ch. 83-278; ss. 6,7, ch.93'147; s. 1645, ch. 2003-261.

642.034 License and appointment required.-No person may soticit, negotiate, sett, or execute legal expense insurance contracts on behalf of an insurer in this state untess such person is licensed and appointed as a sates representative or is licensed and appointed under the insurance code as a generat tines agent. No person licensed and appointed as a tegat expense insurance sates representative may soticit, negotiate, sell, or execute any other contract of insurance untess such person is duty [icensed and appointed to do so under the provisions of chapter 626. History.-s. 1, ch.79-103; s.2, ch. 81-318; ss. 13, 20,21, ch.83-278;s.177, ch.9'l'108; ss.6, 7, ch.93'147; s.97, ch.2003-1;s.72, ch. 2003-267 ; s. 63, ch. 2003'281.

642.036 Sales representatives to be licensed and appointed.-Sates representatives of tegat expense insurers shatt be licensed, appointed, renewed, continued, reinstated, or terminated as prescribed in chapter 626 for insurance representatives in generat, and shatl pay the license and appointment fees prescribed in s. 624.501. No emptoyee or sates representative of an insurer may directly or indirectty solicit or negotiate insurance contracts, or hotd hersetf or himsetf out in any manner to be an insurance agent, untess so qualified, licensed, and appointed therefor under the insurance code. History.-s. 1, ch.79-103; s.2, ch.81-318; ss. 14,20,21, ch.83-278; s.21, ch.85'208; s. 178, ch.91'108; ss.6,7, ch.93-147;s.496, ch.97-102; s.79, ch.98-199; s.98, ch.2003'1; s.73, ch.2003-267; s.64, ch' 2003'281.

642.038 Reporting and accounting for funds.- (1 ) Att funds betonging to an insurer or other person received by a sales representative in transactions under his or her license and appointment shatt be trust funds so received by such representative in a fiduciary capacity; and the representative, in the appticabte regutar course of business, sha[[ account for and pay the same to the insurer or other person entitted thereto. (2) Any sates representative who, not being entitted thereto, diverts or appropriates such funds or any portion thereof to his or her own use commits theft as provided in s. 812.014. History.-s. 1, ch. 79-103; s. 2, ch. 81-318; ss. 15, 20, 21, ch.83-278; s. 179, ch. 91'108; s. 4, ch. 92'79; ss.6,7, ch' 93-147', s. 497, ch. 97 -102; s. 104, ch. 7019-167.

642.041 Grounds for compulsory refusal, suspension, or revocation of license or appointment of contracting sales representatives.-The department shatt, pursuant to the insurance code, deny, suspend, revoke, or refuse to renew or continue the ticense or appointment of any sales representative or the license or appointment of any generat lines agent if it finds that, as to the sales representative or general lines agent, any one or more of the fotlowing aPpticabte grounds exist: (1) Materiat misstatement, misrepresentation, or fraud in obtaining or attempting to obtain a license or appointment.

3.18 8111 www.leg.state.fl.us/statutes/index.cfm?App-mode=Display-Statute&URL=0600-0699/0642/0642.htm1 61312021 Statutes & Constitution :View Statutes : Online Sunshine (Zl The ticense or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of ss. 642.011 -642.049. (3) Wittfut misrepresentation of any [ega[ expense contract or wiltfu[ deception with regard to any such contract, performed either in person or by any form of dissemination of information or advertising. (4) ln the adjustment of ctaims, material misrepresentation to a contract holder or other interested party of the terms and coverage of a contract, with the intent and for the purpose of settling such ctaim on less favorabte terms than those provided in and contemplated by the contract. (5) Demonstrated tack of fitness or trustworthiness to engage in the business of [egat expense insurance. (6) Demonstrated tack of adequate knowtedge and technicat competence to engage in the transactions authorized by the license or appointment. (71 Fraudutent or dishonest practices in the conduct of business under the license or appointment. (8) Misappropriation, conversion, or untawful withhotding of moneys betonging to an insurer or other person and received in the conduct of business under the license or appointment. (9) Untawfutty rebating, or attempting to untawfutly rebate, or untawfutty dividing, or offering to divide, his or her commission with another. (10) Wittfut failure to compty with, or wittfut viotation of, any proper order or rule of the office, commission, or department or witlful violation of any provision of ss. 642.011-642-.U9. (11) Being found guitty of, or pteading guitty or nolo contendere to, a fetony or a crime punishabte by imprisonment of 1 year or more under the taw of the United States of America or any state thereof or under the taw of any other country which invotves morat turpitude, without regard to whether a judgment of conviction has been entered. History.-s. 1, ch.79-103; s.2, ch.81-318; ss. 16,20,21, ch.83-278; s. 55, ch.88-166; s. 180, ch.91-108; ss.6,7, ch.93'147;s.498, ch. 97-102; s. 71, ch. 2002-206; s. 1646, ch' 2003'261.

642.043 Grounds for discretionary refusal, suspension, or revocation of license or appointment of sales representatives.-The department may, in its discretion, deny, suspend, revoke, or refuse to renew or continue the ticense or appointment of any sates representative if it finds that, as to the rePresentative, any one or more of the fottowing appticabte grounds exist under circumstances for which such deniat, suspension, revocation, or refusat is not mandatory under s.642.0412 (1) Any cause for which granting of the license or appointment coutd have been refused had it been known to the department at the time of apptication. (Zl Viotation of any provision of ss. 642.011-642.049, or of any other taw appticabte to the business of tegat expense insurance in the course of dealings under the license or appointment. (3) Viotation of any tawfut order or rute of the office, commission, or department. (41 Faiture or refusat to pay over, upon demand, to any insurer he or she represents, or has represented, any money which betongs to the insurer. (5) ln the conduct of business under the license or appointment, having engaged in unfair methods of competition or in unfair or deceptive acts or practices, as such methods, acts, or practices are defined under part lX of chapter 626, or having otherwise shown himsetf or hersetf to be a source of injury or loss to the pubtic or detrimentat to the pubtic interest. (6) Having been found guitty of, or having pted guitty or noto contendere to, a felony or a crime punishabte by imprisonment of 1 year or more under the taw of the United States of America or any state thereof or under the taw of any other country whether or not a judgment of conviction has been entered. History.-s. 1, ch. 79-'t03; s. 2, ch. 81-318; ss. 17,20,21, ch.83-778; s. 55, ch. 87-226; s' 56, ch. 88-166; s. 181, ch. 91-108; ss' 6,7, ch.93-147; s. 499, ch. 97-102; s. 9, ch. 2001-64; s. 1647, ch. 2003-261.

642.045 Procedure for refusal, suspension, or revocation of license and appointment of sales representative; departmental action upon violation by licensed insurance agent.- provision of ss. 642.011'642.049, the (1 ) lf any sates representative is convicted by a court of a viotation of any license and appointment of such individuat shalt thereby be deemed to be immediately revoked without any 3.19 www.leg.state.fl.us/statutes/index.cfm?App-mode=Display-Statute&URL=0600-0699/0642/0642.htm1 9111 6t3t2021 Statutes & Constitution :View Statutes : Online Sunshine further procedure retative thereto by the department. (21 Whenever it appears that any licensed insurance agent has viotated the provisions of ss. 642.011-642.049, or if any grounds tisted in s. 642.041 or s. 642.043 exist as to such agent, the department may take such action as is authorized by the insurance code for a viotation of the insurance code by such agent, or such action as is authorized by this chapter for a viotation of this chapter by a sates representative. History.-s. 1, ch.79-103; s.2, ch.81-318; ss. 18,20,21, ch.83-278; s. 182, ch.91-108; ss.6,7, ch.93-147; s.99, ch.2003-1;s.74, ch. 2O03-267 ; s. 65, ch. 2003-281.

642.047 Administrative fine in lieu of suspension or revocation of license or appointment.- (1) lf, pursuant to procedures provided for in ss. 642.011-642.049, it is found that one or more grounds exist for the suspension or revocation of, or refusal to renew or continue, any license or appointment issued under ss. 642.011-642.049, and except when such suspension, revocation, or refusal is mandatory an order may be entered imposing upon the [icensee or appointee, in lieu of such suspension, revocation, or refusal, an administrative penatty for each violation in the amount of 5100 or, in the event of wittful. misconduct or wittful viotation on the part of the licensee or appointee, an administrative fine of 5500. The administrative penalty may be augmented in amount by an amount equal to any commissions received by or accruing to the credit of the licensee or appointee in connection with any transaction to which the grounds for suspension, revocation, or refusal retated. (21 The order may atlow the licensee or appointee a reasonabte period not to exceed 30 days, within which to pay to the department or office the amount of the penalty so imposed. lf the licensee or appointee fails to pay the penatty in its entirety to the department or office within the period so altowed, the license or appointment of the ticensee or appointee shatl stand suspended or revoked, or renewal or continuation may be refused, as the case may be, upon expiration of such period and without any further proceedings. History.-s. 1, ch.79-103; s.2, ch.81-318; ss.20,21, ch.83-278; s. 183, ch.91-108; ss.6,7, ch.93-147; s. 1648, ch.2003-261.

642.0475 Civil remedy.- (1) Any person damaged by a viotation of the provisions of this chapter may bring a civil action against a person viotating such provisions in the circuit court of the county in which the atteged violator resides, or has his or her principal place of business, or in the county wherein the alteged viotation occurred. Upon adverse adjudication, the defendant shatl be tiabte for actual damages or 5500, whichever is greater, together with court costs and reasonabte attorney's fees incurred by the ptaintiff. (2) No punitive damages may be awarded under this section untess the acts giving rise to the violation occur with such frequency as to indicate a generat business practice and these acts are: (a) Wiltful, wanton, and maticious. (b) ln reckless disregard for the rights of any insured.

Any person who pursues a claim under this subsection sha[[ post in advance the costs of discovery. Such costs shalt be awarded to the insurer if no punitive damages are awarded to the ptaintiff. (3) As a condition precedent to bringing an action under this section, the department and the person against whom the action is to be brought sha[[ be given notice of the viotation. The notice shatl state with specificity the facts which attegedty constitute the viotation and the law which the ptaintiff is retying upon. No action sha[[ tie if, within 30 days thereafter, the damages are paid or the circumstances giving rise to the viotation are corrected. (41 This section shall not be construed to authorize a ctass action suit against a [ega[ expense insurance corporation or a civiI action against the department, commission, or office or their employees. History.-ss. 19,21, ch.83-278; ss.6,7, ch.93-147; s. 500, ch.97'102;s.1649, ch' 2003'261.

642.048 Prohibited sales.-No insurer of prepaid legat services and no tegal expense insurance corporation shatt market on the premises of any establishment ticensed to se[[ atcohotic beverages any insurance poticy or contract which makes provision for tegal seryices or indemnifies for the cost of legal services in connection with any traffic or boating criminal offense invotving the operation of a motor vehicle, boat, or vessel while under the inftuence of alcohotic beverages. Hittory.-s. 1, ch. 87-169; s.7, ch. 93-147. 3.20 www.leg.state.fl.us/statutes/index.cfm?App_mode=Display-Statute&URL=0600-0699/06420642.htm1 10111 6l3tZO21 Statutes & Constitution :View Statutes : Online Sunshine 642.049 Construction.-Nothing contained in ss. 642.011-642.049 shall be construed to regutate the practice of taw or timit the powers or authority of the Supreme Court of Florida in the regutation of the conduct of attorneys. History.-s. 1, ch.79-103; s.2, ch.81'318; ss.20,21, ch.83'278; ss.6,7, ch.93-147.

3.21 www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0642|/0642.htm1 11t11 CHAPTER 690-20I LEGAL EXPENSE INSURANCE CORPORATIONS

690-201.001 Purpose and Scope (Repealed) 690-201.005 Financial Requirements Regarding the Unearned Premium Reserve Liability Account and the Deposit or Bond 690-201.008 Application for Certificate Authority and Annual Renewal 690-201.010 License Continuance(Repealed) 69o.201.012 Annual Statement and Quarterly Statements 690-201 .01 5 Forms Incorporated by Reference (Repealed)

690-201.001 Purpose and Scope.

Rulemaking Authority 624.308 FS. Law Implemented 624.307(l), 642 FS. History-New 6-25-90, Formerly 4-l15.001, 4-201.001, Repealed 5-25- 21.

690-201.005 Financial Requirements Regarding the Unearned Premium Reserve Liability Account and the Deposit or Bond. (l) "Gross Written Premiums" means the total amount of premiums paid by the consumer forthe entire period of the legal expense insurance contract, including commission. (2) "Obligated" means outstanding contracts in force which have not expired or been canceled and a refund made to the consumer. (3) The unearned premium reserve account is calculated as follows: (a) For all one year policies, the minimum reserve for all legal expense insurance corporations shall be 50% of the gross written premium for which the corporation is obligated on all policies issued in any state. (b) A legal expense insurance corporation may count as one-month policies those policies which are paid by the month and can be cancelled by either party with 30 days notice. The reserve amount required on monthly policies is one-half of the total monthly gross written premium. The legal expense insurance corporation must speciry if the reserve is calculated on a monthly basis. (c)1. For all multiyear policies.issued in any state the reserve shall initially be calculated at 50yo of the gross written premium for the first year premium, and 100% for each subsequent year's premium, for all gross written premiums for which the legal expense insurance corporation is obligated. 2. As each subsequent yearbecomes current, 50 percent of that current year's premium is eamed and shall be subtracted from the reserve. 3. The reserve is maintained until the expiration of the multiyear policy. (4) For purposes of determining the amount of the required deposit under Section 642.023, F.S., the amount of gross written premium in force is the total gross written premium for one full year.

Rulemaking Authority 624.308(l) FS. Law Implemented 624.307(l), 625.051, 642.023, 642.032 FS. History*-New 6-23-92, Formerly 4-201.005,

Amended 5-25-2 I .

690-201.008 Application for Certificate Authority and Annual Renewal. (l) Application for Certificate of Authority as a Legal Expense Insurance Corporation. (a) An application for a person applying for a certificate of authority as a legal expense insurance corporation consists of the following: l. Form OIR-CI-480, "Application for Certificate of Authority Legal Expense Insurance," effective 3/21, available at http:/iwww. fl rules.ore/Gateway/reference.asp?No:Ref- I 3020; 2. Form OIR-A3-478, "Legal Expense Insurance Corporation Surety Bond," effective 6/20, available at http://www.flrules.org/Gateway/reference.asp?No=Ref- I 30 l4; 3. Form OIR-CI-144, "service of Process Consent & Agreement," effective 6/04, hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref- I 30 I 9; 4. Form OIR-CI-905, "Instructions for Furnishing Background Investigative Reports," effective 6/20,hereby incorporated by reference and available at httn:/www.flrules.orgy'Gateway/reference.asp?No=Ref-13021 ;

3.22 5. Form OIR-CI-938, "Fingerprint Payment and Submission Procedures," effective 6/20,hereby incorporated by reference and available at http://www. flrules.orgy'Gateway/reference.asp?No=Ref- I 3022 ; 6. Form OIR-CI-995, "List of Proposed Sales Representatives," effective 10/05, hereby incorporated by reference and available at http://www.flrules.ors/Gateway/reference.asp?No=Ref- I 3023 ; 7. Form OIR-CI-1423, "Biographical Affrdavit," effective 6/20, hereby incorporated by reference and available at hftp://www. fl rules.ore/Gateway/reference.asp?No=Ref- I 3024; and 8. Form OIP.-CI-2221, "Management Information Form," effective 6/20, hereby incorporated by reference and available at http://www. fl rules.org/Gateway/reference.asp?No:Ref- I 3025 ; (b) A person applying for a certificate of authority as a legal expense insurance corporation shall submit forms listed in paragraph (l)(a) as directed by the Office electronically at https://www.floir.com/iportal. (2) Annual Renewal (a)1. A legal expense insurance corporation's certificate of authority shall continue in force as long as the legal expense insurance corporation is in compliance with the provisions of Chapter 642, F.S. 2. Failure to submit the application for continuance by June I shall result in expiration of the certificate of authority and will require the filing of a new application for licensure. (b) The qualified certificate of authority holder seeking to continue operating as a legal expense insurance corporation shall submit Form OIR-A3-I077, "Application for Renewal of Certificate of Authority Legal Expense Insurance," effective 6/20,hereby incorporated by reference and available at http://www.flrules.org:/Gateway/reference.asp?No=Ref- l30l 8 , dt https://www. fl oir.com/iportal; and (c) The legal expense insurance corporation shall honor those contracts in force until the date of expiration or the date of cancellation and a refund is made to the consumer.

RulemakingAuthority 624.308(1),642.021(2) FS. Law Implemented624.404,642.019,642.021,642.032 FS. History-New 6-2i-92, Formerly 4-

20 1.008, Amended 5-25-2 L

690-201.010 License Continuance.

Rulemaking Authority 624.308 FS. Law Implemented 624.307(1),624.416, 624.424, 642.0301, 642.032 FS. History-New 6-23-92, Formerly 4- 201.010, Amended 7-30-17, Repealed 5-25-21.

690,-201.012 Annual Statement and Quarterly Statements. (l)(a) An Annual Statement and a $100 filing fee shall be filed with the Offtce, on or before March I of each year on Form OIR-A3-479, "Annual Statement Legal Expense Insurance Corporation," effective 6/20, hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref- I 30 I 5. (b) If the Annual Statement does not include all information requested in the format provided, it will not be deemed filed until all deficiencies are corrected. (2) A late filing fee will be assessed in accordance with Rule 690-207.001, F.A.C., for each day after March I that a legal expense insurance corporation has not filed a complete annual statement. (3Xa) Quarterly Statements shall be filed with the Office, on Form OIR-A3-481, "Quarterly Statement," effective 6D0,hereby incorporated by reference and available at http://www.flrules.org/Gatewayireference.asp?No=Ref-13017. (b) If the Quarterly Statement does not include all information requested in the format provided, it will not be deemed filed until all deficiencies are corrected. (a) The Quarterly Statements are due as follows:

Period Due First Quarter (March 3l May 15 Second Quarter (June 30) August 15 Third Quarter (September 30) November l5

(5Xa) Any request for an extension of filing the Annual Statement shall be in writing, and the reason(s) for the extension explained in detail.

3.23 (b) All requests must be filed with the Office fifteen (15) days prior to the deadline date for filing the Annual Statement. (6) All filings shall be submitted electronically via the Offrce's system at https://www.floir.com/iportal.

Rulemaking Authority 624.308(l) FS. Law Implemented 624.416, 624.424,642.0301,642.032 FS. History-New 6-23-92, Formerly 4-201.012, Amended 7-30-l 7, 5-25-2 I.

690-201.015 Forms Incorporated by Reference.

Rulemaking Authority 624.308 FS. Law Implemented 624.307(l),642.021,642.023,642.032 FS. History-New 6-25-90, Amended 6-23-92, Formerly 4-20 1.0 I 5, Repealed 5-2 5-2 l.

3.24 5t3t2021 http s ://www.flo i r. com/co m p a nysea rch/

Company Directory: Search Results

The Of;rce of Insurance Regulation company search service can provide full names, business addresses, and identiffing information foriompanies/entities doing business in the State of Florida. Please view the disclaimer before using this service for the first time.

you can search by any combination of company name, company type, address type, and authorized lines of business. To search by name, type in as much of the company's/entity's name as you think is accurate. The service will provid. u lirt of results, if more than one possible match to your search is found. Once a match is found, you may review the list of Companies in Receivership- to see if the company has been placed in receivership.

For AGIC, Inc. (NAIC code 13698), the PIP Contact is Kathryn Kaufrnan, 4054 Sawyer Road, Sarasota, FL 34233,phone (g4l) 256-8893 fax (941) 256-8733 (no email). Due to its status as a suspended company, AGIC, Inc. will not appear in the search below.

This information is current as of 4/i0/2021

your search for companies with (LEGAL EXPENSE INSURANCE) as company type returned 15 records.

Company Name ATLANTIC MUTUAL LEGAL DEFENSE INSURANCE COMPANY, INC.

FLORIDA HEALTH PROFESSIONALS LEGAL EXPENSE INSURANCE,INIQ FLo,RIDA PHYSICIANS ASSocIATIoN LEGAL DEFENSE INS. CO. INC. DBA FPA LEGAL DEF4NSE INSURANCE COMPANY ffiscalsnntrcBs, INc.

lNsu t2

New Search

3.25 114 https ://www.fl o i r. co m/co m pa nysea rch/ st3t2021 https ://www.flo i r. com/com pa nysea rch/

Company Directory: Search Results

The Office of Insurance Regulation company search service can provide full names, business addresses, and identiffing information for companies/entities doing business in the State of Florida. Please view the disclaimer before using this service for the first time.

You can search by any combination of company name, company type, address type, and authorized lines of business. To search by name, type in as much of the company's/entity's name as you think is accurate. The service will provide a list of results, if more than one possible match to your search is found. Once a match is found, you may review the list of Companies in Receivership- to see if the company has been placed in receivership.

For AGIC, Inc. (NAIC code 13698), the PIP Contact is Kathryn Kaufrnan,4054 Sawyer Road, Sarasota, FL 34233,phone (941) 256-8893 fax (941) 256-8733 (no email). Due to its status as a suspended company, AGIC, Inc. will not appear in the search below.

This information is cuwent as of 4/30/2021

Your search for companies with (LEGAL EXPENSE INSURANCE) as company type returned 15 records.

Company Name METLIFE LEGAL PLANS OF FLORIDA, INC. SOUTHERN LEGAL SERVICES CORPORATION THE LEGAL PLAN, INC. DBA PREFERRED LEGAL PLAN U.S. LAW SHIELD LE.GAL EXPENSE INSURANCE CORPORATION U.S. LEGAL SERVICES, TNC. T2

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3.26 http s ://www.fl oi r. co m/co m pa nysea rch/ 1t4 Office of lnsurance Reoulation Company Admissions

APPLICATION FOR CERTIFICATE OF AUTHORITY LEGAL EXPENSE INSURANCE

This package is designed to assist individuals in preparing the application with all the information required by statute and to facilitate expeditious processing of the application by this Office.

PLEASE NOTE: THE COMPLETED CHECK LIST MUST BE SUBMITTED WITH THE APPLICATION PACKAGE.

The completed application package must be submitted to the Office by utilizing the following link:

http : //www.f I o i r. com/i oo rta I and select iApply - Online Company Admissions lf this package requires submission of forms and/or rates, upon receipt of an email notification of acceptance of the application, the Applicant is directed to return to the lndustry Portal http://www.floir.com/iportal and select "Form & Rate Filing Assembly and Submission" to begin the submission of forms and/or rates.

lf this package requires original documents, in lieu of providing original paper documents, the Applicant is directed to submit a PDF of the original document(s) unless otherwise required by Florida Statutes.

Any questions concerning this application package or iApply may be directed to [email protected].

ln order for a submission to be considered a complete application, all required information must be included in the filing. Filings that do not include all required information will be disapproved or returned.

olR-c1-480 REV. 12118

3.27 And Justice For All, lnc. v. Florida Dept. of lns., 799 So.2d 1076 (2001) 26 Fla. L. Weekly D2304

I Cases that cite this headnote 799 So.2d to76 District Court of Appeal of Florida, First District. 121 Administrative Law and Procedure,r+;]:i,' Competence, expertise, and ANID JUSTICE FORALL, INC. dlbl knowledge of agency l5A Administrative Law and Procedure al Legal Club of America, Appellant, I 5AVII Administrative Construction of Statutes v. I5AVII(A) In General FLORIDA DEPARTMENT L5Ak2204 Deference to Agency in General 15Ak2207 Competence, expertise, and O F INSURAI{CE, Appellee. knowledge of agency (Formerly I 5Ak43 l, 36lk2l 9( I )) No. rDoo-2o49. Court need not defer to an agency's construction

I or application of a statute if special agency Sept. 26, zoot. expertise is not required.

Rehearing n.rriJa Nov. 2L, zooL. Administrative Law and Synopsis 13l PfOCedU1.e :4i:rr;, InSUfanCe Company appealed from a final order of the Department of Insurance directing company to cease and desist the sale and Insurance ,,;i,'i+ Authority to do business transaction of legal expense insurance. The District Court of l5A. Adrninistrative Law and Procedure Appeal, Barfield, J., held that competent, substantial evidence I 5AVII Administrative Construction of Statutes supported administrative law judge's finding that company I5AVII(B) Particular Statutes and Contexts was not subject to regulation by Department as seller of legal 15Ak2265 Commerce, Trade, and Business 15 Ak227 Insurance expense insurance. | (Formerly I 5Ak43 8(20) , 361k2 l9( l0)) 217 Insurance Reversed and remanded. 2lTMnsurance Companies and Related Entities 2L7IV(D) Special Types of Entities 2l7k13l I Miscellaneous Entities 2l7kl3 I Authority to do business West Headnotes (5) 5 (Formerly 361k2 l9( I 0)) Insurance Department's construction or lU Administrative Law and application of the definition of "legal expense Procedure ,,ii;';+ Deference to Agency in insurance" was not due any deference from court General when it reviewed Department's order finding that l5A Administrative Law and Procedure company was selling legal expense insurance I5AVII Administrative Construction of Statutes without proper licensure; determination of I5AVII(A) In General whether there was a contractual obligation 15Ak2204 Deference to Agency in General to provide a specific service did not require 15Ak2205 In general expertise in the field of insurance. (Formerly I 5Ak43 l, I 5Ak797) In cases involving the scope of an agency's regulatory jurisdiction, stricter scrutiny is t4l Administrative Law and undertaken by the reviewing court and less PfOCedUfe,,iiti,w lnSUfanCe deference is given to the agency's interpretation, Insurance :j,s;,i:n:i Contracts and Policies especially in cases where an agency is departing from the traditional definition of a word. l5A Administrative Law and Procedure I5AVII Administrative Construction of Statutes

'T-honrscn Ct 2021 Reuters. No clairn to criginal U,S. Goriernnlent \lfarks, 3.28 And Justice ForAll, lnc. v. Florida Dept. of |ns.,799 So.2d 1076 (2001) 26 Fla. L. Weekly D2304

ISAVII(B) Particular Statutes and Contexts 15Ak2265 Commerce, Trade, and Business Opinion L5Ak227 | lnsurance BARFIELD, J. (Formerly I 5Ak43 8(20), 36lk2l 9(9. I )) 217 Insurance And Justice for All, Inc. dlb/al Legal Club of America (Legal zlTXIIl Contracts and Policies Club), appeals a final order of the Department of Insurance 2l TXIII(A) In General (Department) 2l7kl7|0 In general directing Legal Club to cease and desist the transaction of legal expense insurance We (Formerly 36ll<219(9. I )) in Florida. Determination of whether there is a contractual :::::1 obligation to provide a specific service does not require expertise in the field of insurance, for On December 3 1, 1997 , the Department issued a Notice of pu{poses of rule that a court need not defer to an Intent to issue Cease and Desist Order, alleging that Legal agency's construction or application of a statute Club is selling legal expense insurance without being properly if special agency expertise is not required. licensed. Section 642.015(5) provides that "legal expense insurance" means I Cases that cite this headnote a contractual obligation to provide specific legal services, or to reimburse for specific legal expenses, in consideration lnsurance :pu What is insurance tsl of a specified payment for an interval of time, regardless Insurance,4;;1,* Miscellaneous Entities of whether the payment is made by the beneficiaries 217 Insurance individually or by a third person for them, but does 2l7l In General; Nature of Insurance not include the provision of, or reimbursement for, legal 2l7kl00l What is insurance services incidental to other insurance coverages. 217 Insurance The case was transferred to the Division of Administrative zlTMnsurance Companies and Related Entities Hearings and the parties agreed to submit the case on a }I7IV(D) Speciai Types of Entities stipulated record. 2l7kl3l I Miscellaneous Entities 2l7kl3l2 In general The administrative law judge (ALJ) in the recommended Competent, substantial evidence supported order found that all legal expense insurance companies administrative law judge's finding that company, licensed in Florida share a common characteristic that which did not pay participating attorneys any distinguishes them from Legal Club: they all either reimburse fee for accepting referrals or for participating in policyholders for legal expenses incurred or pay attorneys to plan, provided only a referral and did not provide provide legal services to policyholders. The ALJ found that specific legal services or reimburse for specific Legal Club does not provide specific legal services, nor does legal expenses, and that therefore company it reimburse for specific legal services. Accordingly, the ALJ was not subject to regulation by Department concluded Legal Club was not subject to regulation by the of Insurance as a seller of "legal expense insurance." Department.l

*1078 The Department issued a Final Order rejecting several of the ALJ's findings of fact and conclusions of law and determined that Legal Club is selling legal expense Attorneys and Law Firms insurance without proper licensure. The Departrnent noted that Legal Club's marketing materials and guidebooks provide *1077 Susan L. Kelsey, Thomas J. Jones, and Jennifer not just a referral to an attorney, but a referral to an attorney Parker LaVia of Holland & Knight LLP, Tallahassee, for who will provide certain free and discounted services to Appellant. members. It was determined that Legal Club has a contractual obligation to its plan members to provide specific free and Richard A. Grumb€tg, Senior Attorney, Division of Legal discounted legal services through a plan attorney, in return Services, Tallahassee, for Appellee. for which Legal Club receives an annual membership fee

ss*f,STLAW 8t 2A21 Thomson Reuters. No claim to original U.S. Governmeni Works. 3.29 And Justice For All, lnc. v. Florida Dept. of lns., 799 So.2d 1076 (2001) 26 Fla. L. Weekly D2304 from plan members, and Legal Club was therefore subject to The Department erroneously rejected the adminisffative regulation under Chapter 642: l5l law judge's finding of fact that Legal Club provides only This is true because fl.,egal Club] need not employ a referral and does not provide specific legal services or attorneys or otherwise directly perform legal services in reimburse for specific legal expenses, because the finding was order to "provide" legal services. Rather, through the supported by competent, substantial evidence. Southpointe agreement it enters into with its plan members, [Legal Pharmacy v. Department o.f Health and Rehabilitative Club] "provides" its members with the promised free Services, 596 So.2d 106 (Fla. lst DCA 1992). The basics and discounted legal services through a referral to a plan of the plans at issue are that a club member pays an annual attorney who has agreed to abide by the fee schedule set membership fee and receives a refenal from Legal Club to forth in the Plan Member Guidebook, which contains the a plan attorney who has agreed to abide by a schedule of provisions of the agreement entered into by Respondent free and discounted services. When a legal issue arises, the and its members. It is the provision of the specified member contacts the attorney directly. The plan members are free and discounted legal services by Respondent which also responsible for payment directly to afforneys of all legal brings its activities within the definition of "legal expense fees incurre d. Legal Club does not pay participating attorneys insurance." any fee for accepting referrals or for participating in the plan. The only thing Legal Club provides to plan *1079 members

tll I2l l3l l4l In cases involving the scope ofs a referral to a plan attorne y.2 L"gal Club operates more like an agency's regulatory jurisdiction, stricter scrutiny is a purchasing cooperative, in which the combined purchasing undertaken by the reviewing court and less deference is given power of its members is connected to attorneys willing to offer to the agency's interpretation, especially in cases where an a limited number of free and discounted services in order to agency is departing from the traditional definition of a word obtain new clients. (as in this case, where the agency's interpretation departs from traditional concepts of what constitutes insurance). See Because competent substantial evidence supported the Cataract Surgeryt Ctr v. Health Care Cost Containment Bd., ALJ's finding that Legal Club only provided a referral, 581 So.2d 1359 (Fla. lst DCA l99l). Additionally, a court the Department improperly rejected that determination. need not defer to &r ag€rrcy's construction or application of Accordingly, the order on appeal is REVERSED and the a statute if special agency expertise is not required. See Bd. cause REMANDED for the entry of an order consistent with of Trs. of Northwest Fla. C*ty. Hosp. v. Dep't of Mgmt. this opinion. Servs., Div. of Rel, 651 So.2d 170,173 (Fla. lst DCA 1995). Determination of whether there is a contractual obligation to provide a specific service does not require expertise in WOLF and POLSTON, JJ., concur. the field of insurance. Thus, the Department's construction "legal or application of the definition of expense insurance" All Citations is not due any deference from this court under the present circumstance. 799 So.2d 107 6,26 Fla. L. Weekly D2304

Footnotes 1 The judge found dltematively that Legal Club is a lawyer referral service authorized by The Florida Bar and therefore would be exempt from Department regulation even if it were selling legal expense insurance. ln the final order, it was determined that Legal Club is not exempt as a lawyer referral service authorized by The Florida Bar. Because resolution of this issue is not necessary to our holding, we do not address this issue. 2 As noted by Legal Club, the fees charged plan members are fixed at a predetermined rate that is not affected by how frequently plan members seek legal services from plan attorneys nor the amount of fees members pay to plan attorneys for legal services they provide. The plans do not have any limitations on usage or waiting periods, and do not exclude pre-existing legal problems. Legal Club does not reimburse plan members for legal fees. Legal Club does not assume any risk of loss and does not indemniff members for a loss, as an insurance company would.

Wfr$TilAW A 2021Thomson Reuters. No claim to original U.S. Governnlent Works. 3.30