08
[Subsidiary]
CAP. 159] Solicitors (Professional Indemnity)
(Amendment) Rules
2.
[1986 Ed.
(vii) subject to paragraph 4(1) hereof where the Insured's breach of or non-compliance with any condition of the Master Policies or the certificate of insurance has resulted in substantial prejudice to the handling or settlement of any claim against the Insured.
AMOUNT OF COVER
(1) (a) that part of the Insured's loss that exceeds the deductibles referred to in paragraph 2(2) up to a sum not exceeding the difference between such deductibles and HK$1,000,000, in respect of any one claim; and
(b) that part of the Insured's loss that exceeds HK$1,000,000 up to but not exceeding a further sum of HK$4,000,000, in respect of any one claim.
(2) The deductibles for the purpose of sub-paragraph (1)(a) are-
3.
(a) In respect of the first HK$30,000 any one claim where the Insured is a sole practitioner at the Relevant Date;
(b) Where the Insured is a partnership, in respect of any claim against that partnership or its predecessors in business, the first HK$20,000 any one claim multiplied by the number of Principals in the Firm at the Relevant Date;
(c) In addition to sub-paragraph (a) or (b) above, in respect of HK$15,000 any one claim multiplied by the number of assistant solicitors and consultants in the Firm at the Relevant Date;
Provided that in respect of any Firm the aggregate of the amounts set out in sub-paragraphs (a) or (b) and (c) above shall not exceed the first HK$200,000 any one claim.
PREMIUM ASSESSMENT
(1) (a) Save in the case referred to in sub-paragraph (2) (when the premiums shall be assessed by Insurers as therein provided) the amount of all premiums shall be calculated either--
(i) according to the formula-
N*R(1) + M*R(2) + U*R(3)
P = G * [NM + U] * 100
multiplied by
Where-
P = the amount (subject to any appropriate adjustment made under sub-paragraph (3) or (4)) of the Basic Premium which may also be the premium.
N = Number of Principals (as at 31 July immediately preceding such Period of Insurance).
M = Number of assistant solicitors and consultants (as at 31 July immediately preceding such Period of Insurance).
U = Number of Unqualified Staff (as at 31 July immediately preceding such Period of Insurance).
G = Gross Fee Income of the Firm (which shall be determined by the delivery to Authorized Insurers of a certificate of a certified public accountant of the Gross Fee Income attributable to the Practice for the immediately preceding accounting year of the Practice or for some earlier period approved by the Council in accordance with rule 8(1)(a), plus a factor to be applied by Authorized Insurers to this figure to compensate for the historical basis of the Gross Fee Income calculation (such factor not to exceed 10 per cent) and which shall be subject to adjustment as provided in sub-sub-paragraph (b)(iv) below.