In response to the anticipated financial impacts of the COVID-19 pandemic, the Executive Committee of the Law Society of Alberta (“Law Society”) requested that the Alberta Lawyers Indemnity Association (“ALIA”) look at ways to address the impact of this crisis on the legal profession. With the full support of ALIA’s Executive Committee, acting in the capacity of ALIA’s Board, ALIA has implemented a one-time option for its indemnified lawyers to pay a nominal portion of the levy in the first instalment.
As was the case previously, there will be two options for payment of the annual base levy: one lump sum payment, due June 30, or two instalments, the first due June 30 and the second due December 31.
The significant change for the upcoming 2020–2021 levy is that the first instalment will be only $500 instead of half of the base levy, as was required in previous years.
How much is the 2020–2021 levy?
The amount of the 2020–2021 levy will be set by ALIA’s Board in late April 2020.
What if I have a claim before the second instalment is due?
ALIA continues to provide you with indemnity as it would have if you had paid in equal instalments; your coverage remains the same.
Does the $500 instalment cover both Part A and Part B?
Yes, it covers both Part A (negligence coverage) and Part B (misappropriation coverage).
Does this cash flow relief also apply to surcharges?
No, this cash flow relief only applies to the base levy; the surcharge program is unaffected and surcharges will continue to be paid in two equal instalments where the instalment option is chosen.
Does the $500 instalment include the standard $50 administrative fee?
Yes, it does. The other $450 will be applied to your levy, with the balance of the full levy due by December 31, 2020.
Does the $500 instalment include GST?
No, GST is payable on each of the amounts.
When will I receive my levy invoice?
You can expect to receive communications regarding the levy invoice around mid-May.