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FAQ from VBAI
Virginia Barristers Alliance Inc. logo
Must I be a member of The Virginia Bar Association to buy insurance through Virginia Barristers Alliance, Inc.?
How can I set an appointment to meet with a representative?
If I already have group benefits, how can VBAI help?
Can VBAI design and implement insurance vehicles for estate planning?
Can you coordinate efforts with my CPA?
My client wants to transfer assets out of an estate. Can VBAI help?
My client has a child with special needs. Can VBAI help?
What is a claims-made policy?
Why do most companies use a claims-made policy form for professional liability policies?
What is prior acts coverage?
What is a retroactive date?
What is a "C" corporation?
What is an "S" corporation?

 

Must I be a member of The Virginia Bar Association to buy insurance through Virginia Barristers Alliance, Inc.?

No. Virginia Barristers Alliance is here to assist all attorneys in Virginia.

Clients of Virginia Barristers Alliance make a positive financial impact on the bottom line of The Virginia Bar Association.

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How can I set an appointment to meet with a representative?

Simply click on the Contact VBAI button and fill out the brief form with your contact information and products of interest. We'll be in touch promptly to set an appointment with you at a convenient location.

Contact VBAI

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If I already have group benefits, how can VBAI help?

We can conduct an analysis of your group benefits to evaluate their efficiency. Additionally, we can serve as your Agent of Record, which would allow The Virginia Bar Association to benefit with no additional cost to you.

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Can VBAI design and implement insurance vehicles for estate planning?

Yes. We can provide case consultation with attorneys regarding the best way to design different types of insurance to meet the needs of their clients for this very purpose.

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Can you coordinate efforts with my CPA?

Yes. VBAI staff members regularly consults with tax professionals to narrow down the specific details of a recommendation. This can improve and maximize the tax efficiency of the recommendation.

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My client wants to transfer assets out of an estate. Can VBAI help?

Yes. Many mechanisms can be used when transferring assets out of an estate, such as Charitable Remainder Trusts. We have experience with, and access to, companies that can assist with this scenario.

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My client has a child with special needs. Can VBAI help?

Yes. Among our many specialists, we have a special care planner experienced in working with families who have children with special needs.

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What is a claims-made policy?

The majority of professional liability policies are written on a claims-made policy form. For a claims-made policy to respond to a professional liability claim, the claim must be: reported during the policy period in force (and otherwise covered by the policy) and involve an incident that occurred after the retroactive date shown on the declarations page of the policy (usually this is the date of your first claims-made policy). When a claims-made policy expires, it must immediately be replaced with another claims-made policy to avoid a lapse in coverage.

When a claims-made policy is no longer needed, a reporting endorsement ("tail coverage") must be requested. The reporting endorsement is attached to the last policy and provides a place to report any future claim resulting from an incident that occurred between the retroactive date and the date the policy expired.

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Why do most companies use a claims-made policy form for professional liability policies?

Malpractice insurance companies prefer to use a claims-made policy form because with an occurrence policy form, many incidents that could result in a claim may not be reported until some time in the future. Therefore, when an occurrence policy ends, the insurance company cannot be sure it is aware of all the incidents that actually occurred during the policy period. When rates are established for occurrence policies, the company must try to forecast for these future anticipated claims. The speculative nature of this approach can lead to pricing inaccuracies.

Since a claims-made policy covers only known claims, or those claims actually reported during the policy period, the insurance company knows at the end of the policy period all claims to which that policy will respond. These factors allow the insurance company to establish rates more accurately.

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What is prior acts coverage?

Prior acts coverage is when a claims made policy looks back in time to cover incidents that happened in the past. Prior acts coverage is determined by the “retroactive date” identified on the policy. If the incident took place after the retroactive date (or prior acts date) identified on the policy, and the claim is made during an in-force policy (and is not otherwise excluded), the claims-made policy will respond.

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What is a retroactive date?

This date is usually found on the declarations page of a claims-made policy. Each attorney and the legal entity will have their own date. Only incidents that occurred after this date and are reported during the in-force policy period (and otherwise not excluded) are covered. (Not to be confused with the effective and expiration dates of the policy itself).

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What is a "C" corporation?

A corporation, also known as a C corporation, is an entity with a legal existence apart from its owners. A special type of corporation, a professional corporation (PC), can be organized to perform certain professional services.

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What is a "S" corporation?

An S corporation is a hybrid of a partnership and corporation that offers tax advantages to the corporation’s shareholders while giving protection against personal liability.

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VBAI: Serving Virginia's Legal Community Since 2001

Call us

Life, Long-Term Care, Health, Disability & Fixed Annuities
  • 804-270-5128
  • 1-800-358-7987
Professional Liability & Business Coverage
  • 804-377-1012
  • 1-844-370-9218
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