PREPAID LEGAL SERVICE INSURANCE IS A MEANS BY WHICH A LARGE SEGMENT OF THE AMERICAN POPULATION CAN RECEIVE ADEQUATE COUNSELING AT A REASONABLE PRICE. A SURVEY BY THE AMERICAN BAR ASSOCIATION INDICATED THAT THE MAJORITY OF CITIZENS, WHO ARE NEITHER RICH ENOUGH TO AFFORD THE SERVICES OF MANY ATTORNEYS NOR POOR ENOUGH TO QUALIFY FOR LEGAL AID COVERAGE, HAVE NOT OBTAINED THE BENEFIT OF COUNSEL IN IMPORTANT AREAS SUCH AS TAX ADVICE, ESTATE PLANNING, AND CREDIT LAW. STEPS MUST BE TAKEN TO ENCOURAGE THE DEVELOPMENT OF LEGAL SERVICES PLANS, WHICH HAVE INITIALLY BEEN ASSOCIATED WITH LABOR UNION BENEFITS. UNIONS HAVE BEEN SUCCESSFUL AS SPONSORS OF PLANS BECAUSE OF THE EASE WITH WHICH UNIONS CAN CONTACT THEIR MEMBERSHIP AND INFORM THEM OF THE ADVANTAGE OF THE PLAN. UNION SPONSORED PLANS, HOWEVER, MUST BE FUNDED BY UNION MEMBERS, ALTHOUGH ALTERNATIVE PLANS REQUIRE EMPLOYERS TO PROVIDE FUNDING. INDEPENDENT ORGANIZATIONS OR LOCAL BAR ASSOCIATIONS ARE AVAILABLE TO ADMINISTER PLANS. MEMBERS SHOULD BE REQUIRED TO PARTICIPATE IN THE PLAN FOR AN EXTENDED PERIOD OF TIME TO REDUCE OVERALL COSTS. THE PLAN SHOULD PERMIT MEMBERS TO SELECT THEIR OWN ATTORNEY FROM A LIST PROVIDED BY THE ASSOCIATION. THIS 'MODIFIED OPEN PANEL' SYSTEM RESULTS IN LOWER ADMINISTRATIVE COSTS AND IS PERMITTED UNDER THE CODE OF PROFESSIONAL RESPONSIBILITY OF THE AMERICAN BAR ASSOCIATION. IT IS ADVISABLE THAT SPONSORS SUBMIT THEIR PROPOSED PLAN TO THE ANTITRUST DIVISION OF THE JUSTICE DEPARTMENT FOR EXAMINATION UNDER THE ANTITTRUST LAWS. ADDITIONAL CONSIDERATION SHOULD BE GIVEN TO THE EFFECT OF STATE LAWS ON INSURANCE PLANS, THE NEED FOR ACTUARIAL DATA ON THE REQUIREMENTS OF THE PLAN, AND THE ATTITUDE OF THE BAR TO THE PLAN. FOOTNOTES ARE PROVIDED. (TWK).