Taking a look at what’s behind the rise in E & O claims against insurance agents helps them better prevent a suit and defend themselves in the event of one. Some estimates say that as many as one in seven insurance professionals could be named in an E&O claim during their career, while others say the probability is higher. These increased numbers in claims indicate changes in insurance industry operation and the general culture that are driving factors. 1) Rapidly changing … [Read more...]
About Mark Lincoln
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...]
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...]
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...]
Retirements Open Insurance Sector to Young Talent
Big demographic changes in the insurance sector are opening up career options for Millennial-age people who like the idea of flexible schedules and being their own boss. Such jobs also provide a new career path for older workers downsized during the Great Recession who want a new line of work. In the five years between 2013 and 2018, at least one fourth of the insurance industry’s workforce is expected to retire, according to research from management consulting firm McKinsey & Co. … [Read more...]
3 Eye Opening Affinity Scams & What You Can Do About Them
The biggest threat to your clients’ financial security may be closer than they think. The Internet and widespread adoption of social media create conditions ripe for affinity fraud, which uses a potential investor’s faith, ethnic background, country of origin and even fondness for football as a lure. The fraudsters are either members of the target group or pretend they are. In almost all cases, the investment is fake or, at the very least, the promoter lies about vital details, … [Read more...]
Lattes, Lunch or Life Insurance – Which Costs More?
Most U.S. adults greatly overestimate the annual cost of a $250,000, 20-year term life insurance policy, believing coverage costs at least two to three times what it really does. The Average Annual Cost Of Coffee At the same time, people routinely spend more each year on lattes and out-of-office lunch runs than what a standard term policy would cost. For example, the average U.S. adult spends at least $1,100 on coffee drinks outside the home - nearly 3 times more than the annual cost of a … [Read more...]
Monthly Payments Make Affordable E & O Coverage More Accessible
With direct online purchasing, Get Insured 24/7 made buying Errors and Omissions coverage effortless. Now, Life and Health Agents can spread out the cost of their annual professional liability policy rather than pay a lump sum up front. Pay For Your E&O Insurance Monthly For as little as $34.05 a month, insurance agents can spread out an important cost of conducting business. Our “Monthly Pay Option” involves one payment of 25% down followed by 10 more payments on the first of each … [Read more...]
What is the Meaning of Life – Expectancy?
What is the meaning of Life? Philosophers and religious organizations have asked that question and proposed answers for thousands of years. Life’s meaning fuels coffee shop conversations and late-night ramblings. For better or worse, Life and Health agents don’t need to address the cosmic question. What matters here sounds much more simple - under a given scenario, what does the proposed life insurance policy or annuity consider “life?” The not so simple piece - does your client … [Read more...]
Client Risk Assessment Benefits Everyone
Conducting a risk assessment with new clients makes business and legal sense. On the legal side, a thorough, well-documented risk assessment is invaluable should a client file and Errors and Omissions claim alleging misunderstanding, confusion or unsuitability over an investment product. A complete risk assessment won’t stop an unhappy client from suing you, but it is one of the first items your E & O policy underwriter will ask to see. Three Parts of Risk Assessment The benefits … [Read more...]
