B7.2: Contingency Fund

7.2.1 In this rule 7.2, unless the context otherwise requires terms listed in the first column of rule 7.2.1 shall have the meanings respectively ascribed to them in the second column of that rule:

Term

Definition

 

contingency fund

the fund which was established in terms of rule 6(2) of the Solicitors (Scotland) Professional Indemnity Insurance Rules 1995 for the purpose of refunding to practice units such portion of the premiums paid by them as was attributable to circumstances intimated in accordance with the master policy if and when the brokers were satisfied that no claim would result from such circumstances

 

contingency fund monies

the monies which remain in the contingency fund as at 1 September 2007

 

professional indemnity purpose

any purpose concerning indemnity for regulated persons and former regulated persons or the Society against any class of professional liability which is not otherwise funded:

(a) in terms of rules made under section 44 of the 1980 Act; or
(b) by the Society in terms of arrangements for such indemnity in respect of its activities.

 

7.2.2 The Society shall manage and administer the contingency fund monies.

7.2.3 The Society may use the contingency fund monies for any professional indemnity purpose.

7.2.4 The Society may use the contingency fund monies to pay costs and expenses reasonably incurred in connection with their management and administration of those monies or with their use for any professional indemnity purpose.