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February 22, 2013 - Oregon State Bar

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BOG Agenda Memo —Ira Zarov CEO PLF<br />

<strong>February</strong> 7, <strong>2013</strong> Page 2<br />

of time that, in an embarrassment of riches, it charged insureds a single dollar for a number of<br />

ensuing years.)<br />

All that said, although circumstances can change quickly, we are optimistic that if current trends<br />

continue, the PLF will have a strong performance in <strong>2013</strong>.<br />

STAFFING<br />

In the past two years, two experienced claims attorneys have retired. Happily, we have been<br />

able to attract experienced and highly qualified candidates. Two new claims attorneys have<br />

been added to our staff ‐ Holli Houston and Sharnel Mesirow. Ms. Houston previously worked<br />

for a defense panel firm. Ms. Mesirow previously worked as a solo practitioner and most<br />

recently as an associate at the Gevurtz Menashe firm. She was chosen from a pool of seventysix<br />

applicants.<br />

PLF – BOG Issues<br />

Each year, the PLF brings to the BOG for approval proposed changes to the coverage plan. The<br />

changes reflect new developments in the law as well as issues that arise during the course of<br />

the previous year. In addition to changes in the coverage plan, there are often changes to the<br />

PLF Policy Manual which the BOG must approve. Also, in the normal course of events, the PLF<br />

Budget and Assessment is approved by the BOG in the last quarter of the year. The 2014<br />

budget will most likely include some reorganization of several PLF departments because of<br />

retirements and succession planning.<br />

Another issue that will be brought to the BOG is the Special Underwriting Assessment (SUA).<br />

SUA is a surcharge on amounts over $75,000 spent on a covered party’s claim. After intensive<br />

study the PLF Board of Directors voted in 2012 to discontinue the SUA program at the end of<br />

<strong>2013</strong> for the reasons that SUA produced little income, potentially compromised the relationship<br />

of the claims attorneys to covered parties, and was arguably not altogether fair. Proponents of<br />

SUA believed that there should be a consequence for those who have malpractice claims<br />

requiring PLF expenditures. The BOG must approve the change in policy.<br />

At the end of 2012, issues were raised on the solo and small firm practitioner website about the<br />

cost of the PLF installment plan. We are in the process of reviewing those issues in order to<br />

determine the feasibility of implementing some of the suggestions. We will report to the BOG<br />

on that review and, if appropriate, will bring policy changes consistent with the review to the<br />

BOG.<br />

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