Can I buy corporate surety bonds for my clients through my relative's insurance agency, if I don't get paid anything for it?

Plain-English summary

An attorney asked the panel whether it was permissible for him to purchase corporate surety bonds for his clients through a relative who was in the insurance business. He told the panel he would receive no compensation for ordering bonds through his relative's agency.

The panel formulated its response on the assumption that the attorney's clients would not be placed at any disadvantage when he purchased corporate surety bonds through his relative's agency. On that assumption, the panel held that such bond purchases are perfectly proper.

Currency note

This opinion was issued in January 1989, shortly after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988. The Rhode Island Supreme Court later revised the Rules of Professional Conduct in 2007 as part of the nationwide Ethics 2000 process. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule mentioned here.

Common questions

Q: Can I have my clients' surety bonds placed through a family member's insurance agency?

A: Yes, according to this opinion, as long as the attorney receives no compensation for the referral and the clients are not disadvantaged by the arrangement.

Q: Does the panel require any specific disclosure to the client about the family relationship?

A: The opinion's holding rests on the assumption that clients are not disadvantaged; it does not describe any specific disclosure requirement beyond that assumption.

Background and rules framework

The opinion does not cite a specific Disciplinary Rule or Rule of Professional Conduct by number; its holding rests on the assumption that the attorney's clients suffer no disadvantage from having their corporate surety bonds purchased through the attorney's relative's insurance agency, with no compensation flowing to the attorney.

Citations and references

Rules of Professional Conduct:

• None cited by number.

Statutes:

• None cited.

Cases:

• None cited.

Other opinions cited:

• None cited.

See also

No sibling opinions yet indexed.

Source

• Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
• Original PDF: https://www.courts.ri.gov/Opinions/EAP%2088-33.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

DIGEST OF ETHICS ADVISORY PANEL
Opinion #88-33, Request #43
Issued January 12, 1989

An attorney seeks Panel advice as to whether it is permissible for him to purchase corporate surety bonds for his clients through a relative of his who is in the insurance business. The attorney advises the Panel that he would not receive any compensation for ordering bonds through his relative's agency.

In formulating this response, the Panel assumes that the attorney's clients are not placed at any disadvantage when he purchases corporate surety bonds through his relative's agency. In light of this assumption, the Panel takes the position that such bond purchases are perfectly proper.

Ethics Advisory Panel advice is protective in nature. There is no requirement that an attorney abide by a Panel opinion, but if he or she does, he or she is fully protected from any charge of impropriety.