33-1-215. Prepaid legal plan. (1) For the purposes of this section, prepaid legal plan means the assumption of a contractual obligation that is to be spread directly or indirectly among a group of persons to provide specified legal services or reimbursement for legal expenses in consideration of a specified payment for an interval of time, regardless of whether the payment is made by the beneficiary or by a third person on behalf of the beneficiary.
     (2) A prepaid legal plan does not include the provision of or reimbursement for legal services that are incidental to other insurance coverage. The following are not prepaid legal plans:
     (a) retainer contracts made with individual clients with fees based on estimates of the nature and amount of services that will be required;
     (b) contracts made with a group of clients involved in the same or closely related legal matters;
     (c) plans providing only a referral service or a discount card for legal services;
     (d) legal services provided by unions or employee associations to members pertaining to employment or occupation; or
     (e) legal services provided by an agency of state or federal government to employees.

     History: En. Sec. 66, Ch. 472, L. 1999.