107 N.J.L.J. 127
February 12, 1981
Representing Legal Services
Organizations created for
Insurance Brokers' Clients
The inquirer has been approached by some insurance brokers to form an organization to be used by the brokers for the benefit of their clients. It is said to be a group legal services plan. Three different approaches to the problem are presented. We are not asked to pass upon the projects themselves but only upon whether, if one of the three proposed organizations is created, the inquirer will be able to represent it and the subscribers involved.
It is represented that the concept for organization of the plan was not initiated by counsel or any member of his office but by the brokers: that the organization would not be for pecuniary profit but only as a service organization for the clients of the brokers and that after the initial conference, either in person or by phone, by the member of the organization, such client, if he continued to seek advice from the inquirer, would become the inquirer's client without further contact with the broker involved.
The inquirer says that he intends to submit a plan to the Supreme Court as required by DR 2-103(D)(4)(g). If such a plan is submitted and approved by the Court, and counsel acts in accordance with the provisions of DR 2-103, there will be no ethical problem involved. See our discussion of group legal services plans, Opinion 383, 100 N.J.L.J. 1205 (1977).