Hong Kong Regulations

SOLICITORS (PROFESSIONAL INDEMNITY) RULES - RULE 2

Interpretation

(Past version on 01/10/2001).
(Past version on 29/10/1999).
(Past version on 20/08/1999).
(Past version on 30/06/1997).

In these rules, unless the context otherwise requires-

"authorized insurers" (獲認可保險人) means persons carrying on liability
insurance business or pecuniary loss insurance business and recognized as such
by the Society;

"authorized reduction amount" (獲批准扣減款額) means the amount of the
reduction in the total amount of contribution authorized from time to time by
the Council referred to in paragraph 2(7)(a) of Schedule 1; (L.N. 363 of 1991)

"basic contribution" (基本供款) means the amount which is established by
applying the formula set out in paragraph 2(1)(a)(i) of Schedule 1 (and which
is represented by the letter "C" in such formula) as varied by paragraph 2(2),
(3) or (7) of Schedule 1; (L.N. 363 of 1991) "certified public accountant
(practising)" (執業會計師) has the same meaning as in the
Professional Accountants Ordinance ( Cap 50); (23 of 2004 s. 56)

"Claims Committee" (申索委員會) means the committee appointed by the
Council or the Company with power to settle, prosecute or defend claims made
under these rules or the former Rules; (L.N. 58 of 1993)

"Company" (彌償公司) means Hong Kong Solicitors Indemnity Fund Limited;
(L.N. 218 of 1999)

"contribution" (供款) means the contribution referred to in rule 4;

"firm" (律師行) means the firm as from time to time constituted, whether of
a sole practitioner or a partnership, carrying on the Practice;

"first indemnity period" (首段彌償期間) means the period commencing on 1
October 1989 and expiring on 30 September 1990, both days inclusive;

"first Master Policies" (首份總保單) means the 2 professional indemnity
insurance policies entered into between the Society and authorized  insurers
effective on 1 October 1986;

"former Master Policy" (前總保單) means the master policy entered into
between the Society and authorized insurers, expiring on 30 September 1986;

"former Practice" (前執業業務), for the purposes of Schedule 1, means a
Practice which no longer carries on business practising as a solicitor;

"former principal" (前主管), for the purposes of Schedule 1, means a
principal in a Practice on the date when such Practice becomes a former 
Practice;

"former Rules" (前規則) means the Solicitors (Professional Indemnity)
(Amendment) Rules 1986 (L.N. 236 of 1986) and the Solicitors (Professional 
Indemnity) Rules 1987 (L.N. 402 of 1987); (L.N. 111 of 1992)

"former solicitor" (前律師) means a person who has ceased by reason of
death, retirement or otherwise to be a solicitor in Practice and who has been
provided with Indemnity or insured under any Master Policy or former 
Master Policy or whose successors in business have been provided with
Indemnity or insured under any Master Policy or former Master Policy including
the estate and legal representatives of such person;

"fund" (基金) means the fund referred to in rule 3;

"gross fee income" (總費用收入) means-

   (a)  all professional fees, remuneration, commission and charges of any
        kind whatsoever which are rendered in connection with the
        indemnified's Practice; and

   (b)  all income derived by any service, administrative or trustee company
        (other than any company which accepts moneys for investment other than
        as a trustee) or trust in so far as its activities are carried out
        solely in connection with the Practice but excluding any income
        derived by any company within this paragraph for services rendered to
        the indemnified's Practice or to any other company within this
        paragraph where and to the extent that such income is included in the
        gross fee income of the indemnified's Practice or of such other
        company as aforesaid;

"indemnified" (獲彌償保障者) means the firm named in the receipt
referred to in rule 9, or any principal in the firm , any person employed in
or in connection with the Practice (including any assistant solicitor, any
solicitor who is a consultant in the firm, and any trainee solicitor), any
solicitor who has ceased by reason of death, retirement or otherwise to
practise as principal in the firm, any former employee employed in or in
connection with the Practice (including any assistant solicitor, any
consultant and any trainee solicitor as aforesaid) and the estate and the
legal representatives of any of the foregoing, and also includes any service,
administrative or nominee company or trust insofar as its activities are
carried out in connection with the Practice; (L.N. 35 of 1992; L.N. 162 of
2001)

"Indemnity" (彌償) means the indemnity to which the indemnified or a former 
solicitor is entitled under rule 10;

"indemnity period" (彌償期間) means a period (being a period during which
either Indemnity or insurance under any Master Policy or former Master  Policy
has been or is being provided) commencing on 1 October in any year and
expiring on 30 September in the following year, both days inclusive;

"insurance fund" (保險基金) means the fund or funds established and
maintained by the Society under the former Rules as part of the Professional 
Indemnity Insurance Scheme; (L.N. 111 of 1992)

"insured" (受保人) means a person who is covered by professional indemnity
insurance under the Professional Indemnity Insurance Scheme; (L.N. 111 of
1992)

"Master Policies" (總保單) means the first Master Policies and the second 
Master Policies, and Master Policy means any of such policies;

"panel solicitor" (委員會律師) means a firm of solicitors appointed by
the Company to act on behalf of an indemnified or a former solicitor in
respect of any claim against the indemnified or a former solicitor covered
under this Professional Indemnity Scheme;

"period of indemnity" (彌償時段) means the period specified in the receipt
issued under rule 9 or in the case of a former solicitor means the
indemnity period;

"Practice" (執業業務) means the business of practising as a solicitor,
including the acceptance of obligations connected with and incidental to such
practice as-

   (a)  trustee;

   (b)  executor;

   (c)  attorney acting under a power of attorney;

   (d)  tax agent;

   (e)  patent agent;

   (f)  trade-mark agent;

   (g)  company secretary;

   (h)  company director; or

   (i)  notary public, provided the solicitor is so qualified, undertaken by
        the indemnified or his predecessor in business alone or with others,
        provided always that wherever any fees or other income accrue
        therefrom they inure to the benefit of that business; (L.N. 266 of
        1999)

"principal" (主管) means a partner or sole practitioner of a firm and shall
also include any solicitor holding out as such a partner or sole practitioner;

"Professional Indemnity Insurance Scheme" (專業彌償保險計劃) means the
professional indemnity scheme set out in the former Rules, which became
effective on 1 October 1986 and which was replaced on 1 October 1989 by the
Professional Indemnity Scheme; (L.N. 363 of 1991; L.N. 111 of 1992)

"Professional Indemnity Scheme" (專業彌償計劃) means the
professional indemnity  scheme set out in these rules, as from time to time
amended by agreement between the Society and the Company;

"related costs" (有關連訟費) means all costs and expenses incurred with
authorized insurers' or the Company's consent in the defence or settlement of
any claim against the indemnified or a former solicitor;

"relevant date" (有關日期) means-

   (a)  the date when a claim for which Indemnity is provided is first made
        against the indemnified or a former solicitor;

   (b)  where the circumstances which might give rise to such a claim first
        came to the notice of the indemnified or a former solicitor on a date
        earlier than the date referred to in paragraph (a), that earlier date;
        or

   (c)  where the firm has ceased the Practice at the date referred to in
        paragraph (a) or (b) (as may be applicable), the date when the cause
        of action first accrued against the firm; (L.N. 162 of 2001)

"second Master Policies" (第二份總保單) means the 3 professional
indemnity insurance policies entered into between the Society and authorized 
insurers effective on 1 October 1987;

"unqualified staff" (不合資格職員) means persons who are not solicitors.
(Enacted 1989)
___________________________________________________________________________
Note: This rule was amended in 1992. For Transitional Provisions see rule 3 of
L.N. 35 of 1992, which is reproduced as follows- "3. Transitional

In rule 2 of the Solicitors (Professional Indemnity) Rules ( Cap 159 sub.
leg.) a reference to "trainee solicitor" shall, in respect of any time before
the commencement of these Rules, be deemed to be a reference to

"articled clerk".". " authorized insurers" (獲認可保險人) "
authorized reduction amount" (獲批准扣減款額) " basic contribution"
(基本供款) "certified public accountant (practising)" (執業會計師) "
Claims Committee" (申索委員會) " Company" (彌償公司) " contribution"
(供款) " firm" (律師行) " first indemnity period" (首段彌償期間) "
first Master Policies" (首份總保單) " former Master Policy"
(前總保單) " former Practice" (前執業業務) " former principal"
(前主管) " former Rules" (前規則) " former solicitor" (前律師) "
fund" (基金) " gross fee income" (總費用收入) " indemnified"
(獲彌償保障者) " Indemnity" (彌償) " indemnity period" (彌償期間)
" insurance fund" (保險基金) " insured" (受保人) " Master Policies"
(總保單) " panel solicitor" (委員會律師) " period of indemnity"
(彌償時段) " Practice" (執業業務) " principal" (主管) "
Professional Indemnity Insurance Scheme" (專業彌償保險計劃) "
Professional Indemnity Scheme" (專業彌償計劃) " related costs"
(有關連訟費) " relevant date" (有關日期) " second Master Policies"
(第二份總保單) " unqualified staff" (不合資格職員)