The State Bar of California viewed the situation as a crisis
of the first magnitude, both for lawyers and their clients -
all functioning without appropriate protection. California desperately
needed a legal malpractice carrier capable of weathering any
storm. It was clear that the company filling this tall order
would have to educate its policyholders in order to help reduce
the incidence of malpractice claims. It would also need to charge
responsible premiums sufficient to meet current and future financial
obligations to policyholders.
Out of this pressing need, Lawyers' Mutual was born. LMIC
was to be a "mutual" company whose policyholders would
be member/owners - investing in and benefiting from the company's
stability. In 1979, LMIC issued its first policy. By the mid-1980s,
LMIC insured more than a third of California's lawyers, most
of whom had been left high and dry when other malpractice carriers
fled the market.