Every law practice in Queensland must hold professional indemnity insurance. QLS established Lexon Insurance Pte Ltd (Lexon) (formerly QLS Insurance) in 2001, which has helped protect solicitors from rises in Professional Indemnity Insurance (PII) premiums. Further information is available from Lexon's website.
Summary of the scheme
Lexon Insurance Pte Ltd (Lexon) (formerly QLS Insurance) was established in 2001 in response to rocketing professional indemnity insurance premiums. Prior to 1987, insurance was provided by the retail market from London, from 1987 QLS's internal Law Claims Levy Fund (LCLF), and from 1996-2001 through APPIIL and St Paul Insurance Australia Ltd.
Lexon is managed by its directors and reports to its shareholder, QLS, through Council, and is wholly accountable to Council. In April 2006 the Claims Management Agreement with St Paul Insurance Australia ceased and Lexon become responsible for the management of claims and acts as Claims Manager for matters notified under the Lexon policy of insurance.
Lexon is based in Singapore due to its lower minimum capital requirement, and uses professional management in Singapore for local compliance matters. Lexon is not authorised under the Insurance Act 1973 to conduct insurance business in Australia and is not subject to the provisions of that Act which establishes a system of financial supervision of general insurers in Australia. Lexon has paid up capital of AUD $19M and any disputes in relation to the terms of the Master Policy will be governed by Queensland law. Lexon cannot be a declared a general insurer for the purpose of Part VC of the Insurance Act 1973 (Cth) and, if Lexon becomes insolvent, you will not be covered by the financial claims scheme provided under Part VC of that Act.
Lexon remains at all times wholly-owned by QLS and has the exclusive, specific and finite function of participating in the QLS-managed compulsory professional indemnity scheme for Queensland solicitors
Acquisition Endorsement available when Purchasing an Existing Practice
Following feedback from the profession, the Queensland Law Society has worked closely with Lexon Insurance to develop an Acquisition Endorsement which now provides a mechanism whereby a practice (the “Purchaser”) intending to acquire another practice (the “Vendor”) may, for the payment of a small additional amount, avoid the claims loading impact of a previously unknown claim arising from a client matter which the Vendor had finally billed and closed prior to the acquisition.
If a claim is subsequently made and is covered by the Acquisition Endorsement, the Purchaser will have the additional benefits of:
- the applicable excess being that amount which would normally have been payable by the Vendor in its own right if it had not been acquired (which will normally be lower than what would otherwise be the case); and
- no deterrent excess applying irrespective of the circumstances.
For more information and to check whether the Acquisition Endorsement may be applied to a transaction involving your practice, Lexon-insured practices can call Anthony Walduck or Tony Charlesworth on (07) 3007 1266.
The disclosures required to be signed by both the Vendor and Purchaser when applying for the Acquisition Endorsement can be downloaded below (you must be logged into this website to access).
Financial Services Reform disclosure notice
Pursuant to ASIC class order relief, the Queensland Law Society and/or persons responsible for these matters are not licensed under the Corporations Act 2001 (Cth) in relation to the operation of the:
- Law Claims Levy Fund;
- Professional indemnity insurance arrangements made under the Queensland Law Society Indemnity Rule 1987 (Qld) and, from the repeal of that Rule, the Queensland Law Society Indemnity Rule 2005 (Qld); and
- Legal Practitioners Fidelity Guarantee Fund.
The Queensland Law Society is not regulated under the Insurance Act 1973 (Cth).
Lexon Insurance Pte Ltd ARBN 098 964 740 is exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 (Cth) in respect of financial services. Lexon is incorporated in Singapore Company Number 200104171C and is regulated by the Monetary Authority of Singapore under Singaporean law, which differs from Australian law. Singapore has a system of financial supervision of insurers and you should consider whether to obtain further information about that.
Members wishing to finance their premiums can take advantage of the preferred member arrangement QLS has with Westpac Banking Corporation.
To speak to Westpac directly, our dedicated Westpac Sales Executive can be contacted by phone on 07 3227 2177, or by emailing email@example.com