JUDGES AND ESTATES OF LAWYERS WHO PURCHASED MALPRACTICE INSURANCE FROM LAWYER’S MUTUAL MAY BE ELIGIBLE FOR REFUND OF $1275 PLUS 6% INTEREST.

   In a published decision released by the Ky. Court of Appeals on January 16, 2007,

(ALLEN  v. LAWYERS MUTUAL INSURANCE COMPANY OF KENTUCKY, Case No. 2005-CA-002397), it was noted that the Ky. legal malpractice insurer has a policy of refunding Subordinated Surplus Certificates, Series A, which were sold to attorneys in the l980’s upon formation of the insurer.

 

The certificates were sold by Lawyer’s Mutual to enable the company to operate as a mutual insurance company offering professional liability insurance to Ky. lawyers.  The fact amount of the certificates was $1275.  They bear interest at the rate of 6%.

 

In the Allen case, the court ruled that this right of redemption did not apply to attorneys who retired, but did apply to the estates of lawyers who died, and applied to attorneys who had purchased the securities and later became judges.

 

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