Legal Profession Act 2007

Indemnity rules—

may authorise or require the regulatory authority to establish and keep a fund or funds; or

may authorise or require the regulatory authority to take out and keep insurance with insurers carrying on insurance business and approved by the authority for the purposes of the insurance; or

may require local legal practitioners holding practising certificates granted or renewed by the authority, or a class of certificate holders, to take out and keep insurance with insurers carrying on insurance business and approved by the authority for the purposes of the insurance; or

may require any of the following to take out and keep insurance with insurers carrying on insurance business and approved by the law society for the purposes of the insurance—

an incorporated legal practice engaged in legal practice in this jurisdiction;

a legal practitioner director of the incorporated legal practice;

an Australian legal practitioner who is an officer or employee of the incorporated legal practice; or

may make provision in relation to insurance for Australian-registered foreign lawyers engaged in the practice of foreign law in this jurisdiction.

Indemnity rules—

may state the terms and conditions on which indemnity is to be available and any circumstances in which the right to indemnity is to be excluded or modified; and

may provide for the management, administration and protection of any fund established and kept under the indemnity rules, and require certificate holders of practising certificates granted or renewed by the authority, or a class of certificate holders, to make payments to a fund; and

may require certificate holders of practising certificates granted or renewed by the regulatory authority, or a class of certificate holders, to make payments (by way of levy) on any insurance policy taken out and kept by the authority under the indemnity rules; and

may require an Australian legal practitioner or incorporated legal practice required to be insured under the rule, or an Australian-registered foreign lawyer with or applying for insurance under the rule, to disclose the following—

information about professional indemnity insurance to clients or prospective clients;

information to the regulatory authority that is necessary for the regulatory authority to calculate insurance levies applicable to the practitioner, practice or lawyer; and

may prescribe terms and conditions with which an insurance policy, required by the indemnity rules made for the purposes of subsection (1)(c), must comply; and

may authorise the regulatory authority to decide the amount of a payment required by the indemnity rules, subject to limits under the rules; and

may authorise the regulatory authority or insurer to take a proceeding against a certificate holder or former certificate holder for amounts paid by way of indemnity in connection with a matter in relation to which he or she has failed to comply with the indemnity rules, and may state circumstances in which the proceeding may be taken; and

may empower the regulatory authority to take steps as it considers necessary or expedient to find out whether or not the indemnity rules are being complied with.

Indemnity rules may provide in relation to a law practice for any matter that it may, under subsection (2), provide in relation to a certificate holder.

Insurance levies or other amounts payable under the indemnity rules by a law practice may be decided by reference to the total number of Australian legal practitioners employed by the practice and other relevant matters.

This section does not limit section 231(2)(l).