Professional Indemnity Insurance Questionnaire FAQs

1. A Law Practice (the "First Law Practice" - which shall include all predecessor practices determined as Prior Law Practices) which is a predecessor to a Law Practice (the "Successor Law Practice") which Successor Law Practice:
   1. holds itself out as being the successor to the First Law Practice, or as incorporating the First Law Practice, where the holding out can be express, implied or contained in any letterhead, note paper, business card, any form of electronic communication, publications, promotional material or is contained in any statement or declaration by the Successor Law Practice to any regulatory or taxation authority, or;
   2. employs, or takes on as Principals, all or a majority in number of the Principals of the First Law Practice; or
   3. acquires the majority of the goodwill and/or assets and/or client files, or assumes the majority of the liabilities of the First Law Practice; or
   4. adopts the same name as the First Law Practice or a name which is similar to or substantially incorporates that name; or
   5. carries on business from the premises of the First Law Practice; or
   6. employs the majority of legal staff employed or previously employed by the First Law Practice.
2. Where there are two or more Law Practices which meet the criteria in (1) for a Successor Law Practice, that Law Practice which Lexon considers, by application of these criteria to be most closely related to the First Law Practice, shall be deemed to be the Successor Law Practice.
3. Provided however, this Prior Law Practice definition does not apply to:
   1. a Law Practice that employs a sole practitioner in circumstances where that Law Practice does not adopt the business name, occupy the premises or acquire any goodwill, assets, client files or assume any liability of the sole practitioner's practice; or
   2. a Law Practice which only receives, for no consideration, documents formerly held in the safe custody of another Law Practice.

Gross Fee Income (GFI) is defined as:

1.  including all professional fees, remuneration, commission, internal costs and disbursements charged to clients and income of any kind received by the Law Practice;
2. including all income derived directly from any entity other than the Law Practice by any service, administrative or nominee company or trust in so far as the income arises from activities carried out in connection with the practice of a Law Practice;
3. excluding the reimbursement of third party disbursements; and
4. excluding any applicable goods and services tax.

• where the Law Practice is affiliated with any member services organisation and provides Legal Services to members either free of charge or at non-commercial rates, then the GFI referrable to such work shall be deemed to be three times the combined remuneration (which, for this purpose, shall mean salaries and/or consultancy fees received for services provided in relation to the member services organisation) of the Principals, employed solicitors, consultants, articled clerks, trainees and Paralegals retained by, or who provide services through, that Law Practice; and
• where services are performed that could be performed by someone other than a solicitor (for example a tax agent, cost assessor, patent attorney etc), the fees in relation to this work shall be included in the GFI where the services have been performed subject to a client / solicitor retainer (or where the client would reasonably assume they were obtaining legal advice). If the services performed are not subject to the above, the fees can be excluded from the GFI declared (noting that coverage under the policy will not be available).

For the purpose of assessing the stamp duty payable by Lexon in each Australian jurisdiction, you are required to state the number of persons working for the Law Practice in each State or Territory.

All persons employed or engaged, in any capacity, and whether part time or full time, by the Law Practice and by service entities, companies and trusts associated with the Law Practice, including:

1. principals, legal practitioner directors;
2. consultants; and
3. both legal and non-legal staff.

Staff numbers are as at 1 February 2024. When completing the relevant sections, you should make reference to the below:

1. a principal includes every practising practitioner who is, or is held out to the public as a principal/legal practitioner director in a Law Practice.
2. staff employed or engaged in the business of the Law Practice for less than twenty (20) hours per week shall be recorded as one half of a staff number (being 0.5 for number purposes).
3. a paralegal is a person who is not a qualified solicitor or barrister, and undertakes substantive legal work that requires knowledge of legal concepts and legal procedures.
4. staff employed or engaged in the business of the Law Practice shall include staff employed by the Law Practice and by service entities, companies and trusts associated with any Law Practice.

Where the predominant feature of the matter concerns issues with the conveyance of residential property including:

• drafting of a conveyancing agreement;
• advice on relevant terms of a conveyancing agreement;
• performance of a conveyancing agreement (such as giving notice, exercising an option, attending settlement etc).

Where the predominant feature of the matter concerns issues with the conveyance of commercial property including:

• drafting of a conveyancing agreement;
• advice on relevant terms of a conveyancing agreement;
• performance of a conveyancing agreement (such as giving notice, exercising an option, attending settlement etc).

Including those where the predominant feature concerns:

• leases (landlord and tenant);
• town planning.

Where the predominant feature of the matter concerns issues as to mortgages and securities including:

• guarantees, company charges and loan agreements;
• Personal Property Securities Register (PPSR);
• registration, transfer and realisation;
• advice given about operation of mortgages and securities.

Where the predominant feature of the matter is of a commercial nature but does not fit into any other category. For example:

• corporate (including incorporation, director’s duties, mergers and acquisitions);
• sale/purchase of business;
• insolvency;
• trusts.

Where the predominant feature of the matter involves issues arising from family law including:

• binding financial agreements;
• advice regarding property, support and custody issues, or de facto matters;
• related litigation, such as in the family law courts.

Where the predominant feature of the matter concerns personal injuries claims (whether for the claimant or defendant) including:

• advice as to the viability of a cause of action;
• assessment of liability and damages;
• pre-proceedings requirements and conduct of proceedings;
• motor vehicle, workplace, public liability, criminal compensation and others.

Where the predominant feature of the matter is litigation (not being personal injuries or another category) including:

• conduct of proceedings;
• advice as to causes of action and defences;
• assessment of the liability, damages, and settlement;
• adducing appropriate evidence.

Where the predominant feature of the matter relates to wills, estates and succession planning including:

• drafting and advising on testamentary documents;
• drafting and advising on trust documents and structures, and EPOAs;
• administration/distribution of a deceased estate or other trust;
• related litigation such as testator family maintenance.

Where the predominant feature of the matter involves criminal law issues including:

• advice to make a certain plea;
• investigating appropriate defences;
• obtaining evidence.

Where the predominant feature of the matter concerns tax and duty issues including:

• structuring of transactions to maximise tax and stamp duty benefits;
• application of or liability to pay GST in a given transaction.