Sharpen Your Skills With Our E&O Claim Scenarios We believe that insurance professionals can improve the service that their clients receive by sharpening their professional skills by looking over case studies and scenarios that have led to E&O claims. Facts An agent sold his client a long-term care policy, after representing that it would provide comprehensive protection in the event that he was confined to a nursing home. The client, who was 75 years old, became ill and needed … [Read more...]
E&O Claims Scenario: The Claim of the Missing Application
Sharpen Your Skills With Our E&O Claim Scenarios We believe that insurance professional can improve the service that the client receives by sharpening their professional skills by looking over case studies and scenarios that have led to E&O claims. Facts The agent took an application for a $100,000 term policy insuring the life of the client. The application was completed, but the client was not provided with a conditional receipt or binder. The agent gave the application to his … [Read more...]
Top 5 E and O Claims Against Insurance Agents
When you are on the receiving end of a professional liability complaint, you may feel attacked, insulted or the victim of a random legal dart hurled at your business. Identifying the top 5 E&O claims shows accusations are not random - and gives you and your practice a great guide to reducing the factors that can lead to complaints. Failure to Procure Coverage Leads the List Nearly 1 of every 4 errors alleged involve failure to procure coverage, according to the Independent Insurance … [Read more...]
E&O Claim Scenario: Umbrella Claim
Facts An agent had been servicing a client’s personal insurance account for many years, which included an auto, a homeowner’s and an umbrella policy. The client terminated the auto policy as he was able to procure auto insurance from another carrier for less premium. The umbrella and homeowner’s insurance policies remained in force. As a result of the termination of the auto policy, the umbrella policy only applied in the event of a claim under the homeowner’s policy. Umbrella Policy Coverage … [Read more...]
E&O Claim Scenario: To Borrow or Not To Borrow
Facts Mr. and Mrs. Smith are high net worth individuals. Much of their wealth, however, is in real estate. A few years ago, they met with an Insurance Agent who identified a life insurance need. Based on their situation, the Agent concluded that the Smiths could use $5 million in life insurance coverage. The Agent recommended a whole life policy that earns dividends and builds cash values. Based on their age and health, the annual premium for such a policy was $175,000. The Smiths did not … [Read more...]
E&O Claim Scenario: Know What You Are Selling
The Massachusetts Supreme Judicial Court recently issued a decision affirming the potential liability of an insurance agent and insurance company for oral misrepresentations made by the agent. In that case, the plaintiff alleged, and the trial court found, that the insurance agent had misstated the benefits provided by a life insurance policy; assuring the plaintiff that the policy provided a $500,000 death benefit when, in fact, it provided only $200,000. Despite the existence of policy … [Read more...]
Get Insured 24/7 Offers E&O Aggregate Limit of $3 Million
There appears to be movement in the insurance industry to ask insurance agents to increase their coverage limits on their professional liability insurance. Some carriers have recently required a $3 million aggregate limit for some of their life and health agents and other companies could follow the trend. That's Why We're Offering a $3 Million Aggregate Coverage Limit Now We’ve commenced offering an aggregate coverage limit of $3 million option to accommodate those Life and Health Agents who … [Read more...]
E&O Claim Scenario: If It’s Not Documented, It Didn’t Happen!
The Agent sold Dr. and Mrs. Jones two 20-year term policies in 2000, each having a $5 million death benefit. Dr. and Mrs. Jones are high wealth clients with many insurance and investment products in their portfolio. The monthly premiums for these particular policies were $300/month for Dr. Jones and $250/month for Mrs. Jones. Their policies were set up to pay the premiums through automatic monthly bank account deductions. The Update To The Policies In 2010, the Joneses wished to replace … [Read more...]
Life Insurance Agent: With Fee Disclosure, Oversharing is a Good Habit
As a life insurance agent, assuming your clients understand a product’s fee structure and have read the disclosures can lead to hard feelings, or worse, an errors and omissions claim. That’s what happened in one of our Errors and Omissions Claim scenarios. John, the client, rolled over an old annuity contract into a new one on his Agent’s recommendation. The new annuity had several attractive features, including a 10 percent signing bonus and a guaranteed income rider, but two years of … [Read more...]
E&O Claim Scenario: “Imperfect File Administration?”
Sharpen Your Skills With Our E&O Claim Scenarios We believe that insurance professional can improve the service that the client receives by sharpening their professional skills by looking over case studies and scenarios that have lead to E&O claims. Application Submitted to Two Carriers A client came to an agent seeking life insurance. The application was submitted to two carriers, Carrier A and Carrier B. An application was completed which denied the existence of a pre-existing … [Read more...]
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