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 a fixed annuity, specifically a Single Premium Immediate Annuity (“SPIA”), for Three Hundred Thousand Dollars ($300,000) to a 69-year old woman who died unexpectedly after receiving only two distributions totaling … [Read more...]
E&O Claims Scenario: Mixing Qualified Money and Variable Annuities
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: The Client comes to Agent with an IRA valued at $250,000. The investments in the IRA are relatively conservative, well-known mutual funds. This IRA represented just a small amount of the Client’s overall net worth. … [Read more...]
When Should You Report a Potential E&O Claim?
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 insurance agent sold a $100,000 universal life insurance policy to her client in 2010. The client alleges that the agent promised that the premium would stay level for the life of the contract and that the cash … [Read more...]
E&O Claim Scenario: Disability Insurance – Are You Certain What You Are Selling?
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 the Claimant (a dentist) an individual disability policy and a business overhead expense (BOE) policy for her practice through ABC Insurance Company. Based on the agent’s prior experience with … [Read more...]
Four Reasons Why E&O Claims Are on the Rise
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...]
E&O Claims Scenarios: Improper Completion of Life Application
The Claim of Material Misrepresentation on a Life Insurance Application 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 The agent assisted his client with the completion of an application for a $500,000 life insurance policy. The application was completed and submitted … [Read more...]
E&O Claims Scenario: The Claim of Failure to Advise of Coverage Options
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 The agent sold the client a disability income policy, which provided benefits of $5,000 per month until age 65. The client became disabled when he was 55 years old, and the insurer commenced payments under the policy. However, … [Read more...]
E&O Claims Scenario: Did the Agent Misrepresent a Long Term Care Policy?
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...]
