I am pleased to report on behalf of the Board that the Liability Claims Fund has had another very strong year. The full practising levy for 2003/2004 is $850.

This represents a $78 increase for private practitioners over last year.

However, it is the second lowest assessment for members in the last decade, well off the high of $2700 per member reached in the early 1990s. It is also one of the lowest insurance assessments in the country.

Our actuaries advise us that the true levy necessary to meet our expected liabilities in the coming year would be $1563 per private practitioner, about 1.8 times the levy being charged to members. We are able to subsidize this amount through the return of excess surplus, in consultation with our actuaries. Since we are gradually depleting our surplus, we can expect the levy to increase over time. Members should not expect the levy to remain at these low rates indefinitely.

Overall the claims experience showed an upward trend last year, with the number of open claims increasing by 10 percent.

As with many organizations, post 9/11 our investment experience has been less than anticipated. We have been fortunate enough to preserve the capital of the fund but we saw little in the way of returns in 2002.

The increase in claims and the less than anticipated returns has required an increase in reserves to meet our anticipated liabilities.

On the positive side, our claims experience with CLIA (which provides coverage of our liability claims in excess of $300,000 up to a maximum of $1,000,000 per occurrence) continues to be extraordinarily good. We are once again able to withdraw excess subscribers’ equity, this time in the amount of $1,067,000. This amount has allowed us to increase the credit being offered by the Liability Claims Fund to each insured member. We will continue to return excess surplus over time in keeping with the recommendations of our actuaries.

The Legal Aid rate has been recommended at 50 percent of the private practitioner’s rate or $425 in keeping with a practice started some years ago.

A decision was taken by the Board to recommend government lawyers pay an amount equal to the CLIA premium together with a contribution to administration and a part of their exposure.

The government lawyer rate of $350 is made up as follows:

CLIA premium $280
administration and contribution to exposure $70
Total $350

The Liability Claims Fund is committed to managing your funds cautiously. We are very pleased with the financial health of the Fund and our consequent ability, through return of surplus, to stabilize rates for members during these difficult times in financial and insurance markets. We can all do our part to keep increases in rates to a minimum, by practising carefully with a view to loss prevention.

The Board has begun the process of strategic planning and has, in consultation with the Executive of the Society, established its mission, vision and strategic directions as follows:

Mission
The Nova Scotia Barristers’ Liability Claims Fund is established and operated pursuant to the Barristers & Solicitors Act and Regulations, as part of the Nova Scotia Barristers’ Society’s public protection mandate.

The Fund conducts the mandatory professional liability insurance program for the benefit of the practising insured members.

Vision
The NSBLCF is recognized by its members and peers for the superior quality of its professional liability insurance program and for its active loss prevention program that is used and valued by its members.

The Fund is managed in a fiscally responsible manner; always ensuring adequate resources are available for the long-term health of the program. Its governance and authorities are clearly specified, and its relationship with the NSBS is exemplary.

The Fund continually meets its goals and objectives.

Strategic Directions
1. Maintain financial stability
2. Implement an effective Loss Prevention Program
3. Ensure member satisfaction
4. Document policies, procedures and governance arrangements
5. Develop and maintain excellent staff and Board

The Board very pleased to continue its activities for the benefit of members. I would like to thank all members of the Board for the commitment and dedication they continue to show to the Fund. I would also like to especially thank your Director of Insurance, Deborah Rozee, and the dedicated staff who work so diligently to assist members. It is indeed a pleasure and an honour to be Chair of the Board of the Fund.

Sandra MacPherson Duncan

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