You just keep shaking your head, wondering how you now find yourself in arbitration. Some say arbitration is better than going to court. But is it really if the outcome is the same? Across the table is your disgruntled client, arms folded in akimbo with her advocate, prosecuting attorney Ilya Lerma, defender of the disenfranchised and the guardian of the geriatric. She’s unyielding, unrelenting in her pursuit of client suitability.
Attorneys who specialize in senior fraud are particularly aggressive against financial professionals who allegedly have swindled women with unsuitable products. You mind starts to drift as you considered the possibility that you may have to fall on your E&O sword. But E&O polices don’t cover fraud. And an attorney that is well versed with the sales process and client discovery, can open the proceedings with a claim of unsuitability and ultimately morph it into outright fraud in the end.
Legal counsel is also trained in the compensation model that cites everyone who benefited from the transaction, i.e. the agent, the independent marketing organization and issuing insurance company (maybe even the broker/dealer.) If that doesn’t put the fear of God in you, nothing will.