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PENNSYLVANIA CLIENT SECURITY FUND SUPPORTS PROPOSED REGULATION

 PENNSYLVANIA CLIENT SECURITY FUND SUPPORTS PROPOSED REGULATION
 HARRISBURG, Pa., Jan. 24 /PRNewswire/ -- Dishonest lawyers misappropriating their clients' insurance settlements will have a tougher time with this scam due to a proposed regulation by the Pennsylvania Insurance commissioner and requested by the Pennsylvania Client Security Fund.
 The fund reimburses clients, up to $50,000 per valid claim, for money or property taken illegally by lawyers involved in their affairs.
 In a prepared statement before the Independent Regulatory Review Commission, C. Grainger Bowman, attorney, chairman of the fund's board, stated that the proposed regulation will thwart a dishonest attorney's attempt to convert the insurance money for him/herself without client knowledge. This is because insurance companies will be required to notify claimants when checks have been paid to their attorneys. Bowman added that such a regulation would not disturb the traditional attorney- client relationship.
 "In other jurisdictions (specifically New York state)," Bowman continued, "we are aware that the regulation has had its intended and salutary effect. Since its adoption in New York state in September of 1988, there has been only one claim presented to New York's fund which involves the forgery of a law client's endorsement on an insurance settlement draft. Pennsylvania's regulation should have the same beneficial effect on this jurisdiction."
 Although the Pennsylvania Client Security Fund has had a small number of claims throughout its 10-year history, Bowman pointed out that regulations, such as the one sought by the fund, are welcome because "the legal profession encourages and supports methods of reducing losses resulting from dishonest conduct in the practice of law."
 Although it is a committee of the Pennsylvania Supreme Court, the fund receives no tax money. Payment of all claims and fund expenses comes from annual assessments on all 42,000 Pennsylvania lawyers.
 The Pennsylvania Supreme Court appoints five lawyers and two non- lawyers to the board to oversee the fund's affairs and to judge claims for their validity. Justice Nicholas P. Papadakos is the Supreme Court liaison to the board.
 Information about the fund or how to file a claim may be obtained from: Pennsylvania Client Security Fund, 1515 Market St., Suite 1425, Philadelphia, Pa. 19102-2052; 800-962-4618.
 /delval/
 -0- 1/24/92
 /CONTACT: Sloan Auchincloss of Auchincloss & Auchincloss, 717-234-5825, or, home, 717-238-2131, for the Pennsylvania Client Security Fund/ CO: Pennsylvania Client Security Fund ST: Pennsylvania IN: SU:


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Publication:PR Newswire
Date:Jan 24, 1992
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