Practising Exempt Status

Practising Exempt

Status

What does it mean to be a practising exempt member?

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A practising exempt member is a member who does not carry professional liability (for errors and omissions) insurance coverage.

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Who may apply for practising exempt status?

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The following classes of members may apply for exemption from mandatory insurance coverage:

  1. a member who is not engaged in the practice of law in New Brunswick,
  2. a member who is employed by a government department of agency, or a municipality, and who does not practise law outside such employment,
  3. a member who is employed by a corporation, other than a professional corporation under section 37 of the Act, and who does not practise law outside such employment,
  4. a member who only performs a service for the Society for fee or reward, or
  5. a member who, although in active practice of law in New Brunswick, maintains a principal office in another province, as long as the member is insured under a similar mandatory plan in such other province which would cover claims arising in New Brunswick.

It should also be noted that a member who maintains a principal office in another province MUST subscribe to the mandatory insurance coverage in New Brunswick, as provided under section 83 of the General Rules under the Law Society Act, 1996, if the member wishes to enter into the Subscription Agreement with Service New Brunswick for the registration of e-documents.

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Can I apply for an exemption from mandatory liability insurance at any time?

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The minimum period of coverage for Professional Liability Insurance is three months. Members who apply for an exemption and who have not been insured for the minimum period will be required to make the three month minimum insurance payment.

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I am currently a practising insured member. How do I apply for an exemption from mandatory insurance coverage?

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If you are currently a practising insured member and you wish to apply for an exemption from mandatory Professional Liability Insurance, you must complete the Form 25 Application for Exemption from Professional Liability Insurance. There are no administrative fees associated with this application.

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I am currently a non-practising member. How do I apply for a change of status to practising exempt?

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Non-practising members who wish to return to practise and apply for exemption from mandatory insurance coverage must file the following duly completed forms and fees:

  • Non-refundable change of status application fee of $86.25 ($75.00 plus HST)

However, a non-practising member who files an application for registration as a practising member, and, who has not practised for at least three of the immediately preceding five years must satisfy the requirements of the Admission Committee before being permitted to return to practise. (For more information, refer to subsection 25(2) and 30(11) of the Law Society Act, 1996 and section 50 and 51 of the General Rules under the Law Society Act, 1996.)

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Are there other fees associated with the change of status from non-practising to practising exempt?

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Yes, non-practising members who wish to return to practice will receive a prorated invoice for the practising membership fee. Invoices are sent upon receipt of the original forms and change of status fee, or by request to the Membership Coordinator.

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Can I change my status retroactively?

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No, a change of status becomes effective upon receipt of all required documents and fees. You may request that the change of status become effective at a future date, submitting the required documents and fees no more than two months prior to that date as indicated on the Form 14 Application for Change of Status to Practising.

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Is a member who has been granted an exemption from mandatory insurance coverage required to meet the requirements of the Continuing Professional Development program?

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Yes, all practising members of the Law Society are subject to the Continuing Professional Development (CPD) requirements, regardless of their insurance status.

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If I did not comply with the CPD Requirements in the year I changed my status to non-practising, will I have to complete those hours upon my return to practising status?

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Yes, all CPD hours outstanding at the time a change of status to non-practising is effective will be added to the current year’s requirement upon return to practising status.

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Is a member who has been granted an exemption from mandatory insurance coverage required to pay the Canadian Bar Association fee?

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Yes, the Canadian Bar Association fee is mandatory for all practising members of the Law Society of New Brunswick, regardless of their insurance status.

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How can I obtain more information?

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If you have any questions about applying for an exemption from mandatory insurance coverage, please contact our Membership Coordinator. If your question relates to eligibility for an exemption in unusual circumstances, it may be referred to the Director of Insurance.

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