application for registration or renewal pursuant to Rule 721
by means of an affidavit or a verification by certification under section 1109 of the Code of Civil Procedure of an authorized shareholder, member, or partner that his or her firm maintains the minimum insurance required by this rule. For purposes of Rules 721(d) and 722, the minimum amount of insurance required shall not be affected:certificate of registration pursuant to Rule 721
, such funds shall be in a sum no less than the minimum required annual aggregate for minimum insurance by that limited liability entity, unless the proof of financial responsibility is provided solely to apply to the deductible or retention pertaining to the applicable minimum insurance, in which case the funds shall be no less than the amount of the deductible or retention. During the annual period covered by acertificate of registration pursuant to Rule 721
, such funds may be used only to satisfy any judgments against the limited liability entity, and any of its owners or employees, entered by or registered in any court of competent jurisdiction in Illinois, arising out of wrongful conduct. Such funds may be in any of the following forms:application for registration or renewal pursuant to Rule 721
by means of an affidavit or a verification by certification under section 1109 of the Code of Civil Procedure of an authorized shareholder, member, or partner that his or her firm maintains the funds required by this rule. Otherwise minimum proof of financial responsibility remains minimum, for purposes of this rule, if the individual or combined amount of any judgments during the annual period covered by the certificate of registration exceeds the amount of the segregated funds.Ill. Sup. Ct. R. 722
Commentary
(April 1, 2003)
Rule 721 imposes joint and several liability on lawyers with an ownership interest in law firms organized under statutes that purport to limit vicarious liability, for claims arising out of the performance of professional services by any firm lawyers or employees, unless the firm maintains minimum insurance or proof of financial responsibility in accordance with Rule 722. For lawyers with an ownership interest in such firms to obtain the limited liability authorized by statute, Rule 722 imposes additional obligations, beyond any statutory requirements, to provide sufficient professional liability insurance or other funds to protect clients with such claims.
Rules 721 and 722 do not reduce lawyers' liability for their own professional conduct or that of persons under their direct supervision and control. Nor do these rules affect lawyers' ethical responsibilities for their own conduct, or that of their law firm or their firm's lawyers or employees, under Rules 5.1, 5.2, or 5.3 of the Rules of Professional Conduct.
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