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disciplinary proceeding expense coverage

A type of coverage found within nearly all lawyers professional liability insurance policies that pays the expenses required to defend an insured attorney when a state bar association or regulatory agency brings disciplinary proceedings against him or her. Disciplinary proceeding expense coverage is typically subject to an annual sublimit of either $5,000 or $10,000. In addition, expenditure of such monies reduces the policy's annual aggregate limit. However, disciplinary proceeding expense coverage does not apply to fines, penalties, monetary sanctions, or the return of any client fees.

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