Curious about DBA's

[Crabcake Johnny]

First of all, if you do anything intentional you're not covered by E&O. E&O also would not cover you if a client simply hit a plan limitation. That's not what E&O is for.

I'm sure many clients have had emotional reactions to hitting a cap. Unfortunately, there's no where to go. Who are you gonna sue if you need a year of outpatient therapy? No one.

If I buy a car and know it doesn't have rear airbags and my son dies in a crash can I sue the car salesman? Dealership? Manufacturer? If I sell a Carefirst policy and say "Pete, this plan has a $500 drug limitation" and Pete says "that's fine" then it's over if Pete needs $10,000 a month in meds.

 

[TXINSURANCE]

A lot of clients are liars, and Health Insurance companies have 2 years to prove it when the claims start rolling in.

Internet / Phone sales tend to pull liars out of the bunch.

Need proof? Less than 2% of my leads use Tobacco... Wow!!! Those anti-smoking campaigns must be paying off??? Yeah right... People are obviously not being honest.

I can name 10 agents I know who have all settled E&O claims, so yes it can happen to you despite being careful and putting barriers in place. You need to not be paranoid about it - but prepare as a possibility that is all.

There is a higher risk with Internet Sales, Sub-Agents, Employees, etc., etc.,

One person show no subs, no employees - I wouldn't lose sleep over it.

 

[Crabcake Johnny]

It's amazing how many potential clients I lose when I go over how claims review works in conjunction to filling out a correct app. All of a sudden I can't get them to return a call. Go figure.

Knowing how the average agent conducts business I'm surprised there aren't more lawsuits. I personally am not worried in the least bit.

 

[GreenSky]

Slightly off subject, does an LLC in California (for example) protect the name in other states?

Could someone that is less than trustworthy (no one comes to mind) steal my name for use in lets say, Indiana?

Rick

 

[The New Guy]

Slightly off subject, does an LLC in California (for example) protect the name in other states?

Could someone that is less than trustworthy (no one comes to mind) steal my name for use in lets say, Indiana?

Rick

A Domestic Corporation, in state, will take precedence, over a Foreign Corporation, out of state. However, a Federal Trademark, or Servicemark, will take precedence over both. TTBOMK

 

[Guest]

Slightly off subject, does an LLC in California (for example) protect the name in other states?

Could someone that is less than trustworthy (no one comes to mind) steal my name for use in lets say, Indiana?

Rick

Whether the name is attached to a sole-prop, an LLC, an S-Corp, or a C-Corp, or a non-profit Corp ... has (almost) nothing to do with if it is protected beyond the state it is domiciled in (and it's "county" not "state" for sole-prop or partnership).

What you want to do is get a Trademark on your name and that will give you a large measure of protection from anyone taking your name... or as is more the case, borrowing it.

Go ahead and name your new company the Coca-Cola Insurance Agency and wait for the phone to ring from the guys in Atlanta. (Although I like to hear the argument that their lawyers would make in how the general public would 'confuse' the Coca-Cola Insurance agency with the company that makes the brown fizzy soda... but I have no doubt that can... and have!)

IF your REAL name was Walter Disney, and you wanted to make movies (in CA at least) you'd have a hard time doing business as Disney Films.

The one thing I learned in my brief tenure in law school is that you should not equate the law with justice.... at least not all the time.

As for GreenSky, I know for a fact there is a BlueSky Cola and no court in the land would let you go into business as GreenSky Cola. (I love BlueSky Cola... when I can find it... Whole Foods here discontinued it... but will order it for me. Try it if you can. It's great.)

Do you know the GreenSky.org people? They are in LA. Look here.

Al

 

[somarco]

I see this field, in the grand scheme of business, to have the least likelihood of being sued.

You are selling an intangible line of credit that may never pay off . . . especially when the client expects it to.

If you think your chances of being sued are small, you have completely underestimated this business. I was once involved in a lawsuit where the former client didn't like my carriers renewal offer, went with a new carrier who promptly denied an ongoing claim, and then came back and sued us for failing to make a "fair" renewal offer.

 

[bluemarlin08]

I mentioned this in another thread but I have a client that has gone off about being questioned about claims in the first year. I explained that companies have the right to investigate but she went off like a cheap bottle rocket. In the course of a conversation with her last week she threatened to sue me, never been sued or had a complaint in 28 years, but she disclosed she had a atrial fib episode 4 years ago she didn't disclose, should I narc her out to the insurance company now that she disclosed to me?

 

[Crabcake Johnny]

You are selling an intangible line of credit that may never pay off . . . especially when the client expects it to.

If you think your chances of being sued are small, you have completely underestimated this business. I was once involved in a lawsuit where the former client didn't like my carriers renewal offer, went with a new carrier who promptly denied an ongoing claim, and then came back and sued us for failing to make a "fair" renewal offer.

I have not underestimated this business but I'm not an alarmist. My chances of being sued are next to zero. I have no liability personally for a company denying any claim or anyone hitting a plan limitation. If I'm operating unethically by washing apps or lying about plan benefits then obviously I'm open to suits.

"I'm gonna sue" is far different than actually suing. You need something called "a case" or good luck finding an attorney who won't demand payment in full. Very few people have to time or money to sue - unless it's in small claims court. On a worry scale on 1 to 20 knowing how I operate I'm worrying about getting sued around .00000001.

 

[Guest]

but she disclosed she had a atrial fib episode 4 years ago she didn't disclose, should I narc her out to the insurance company now that she disclosed to me?

IANAL, but in CA you are legally considered a representative (aka "field agent") of the carrier and TTBOMK you have a fiduciary duty to report what you know.

If it comes out later that she made this disclosure and you didn't bring it to the attention of the carrier, YOUR ass may be in a the grass. Of course if she told you on the phone, she can deny it and it would be the typical "he said, she said" go-round. You should still report it and let the carrier's lawyer deal with it... just to CYA (and assets!)... since this does not sound like a rational client or one you can trust.

Again IAMAL (I Am Not A Lawyer) so the above is worth what it cost you.

If it were me, I'd talk to my own lawyer and do what she told me to do because my first, current and very expensive wife is NOT one who would take kindly to us being sued and losing her house and credit cards. Nordstrom and Talbots and Coldwater Creek would probably go BK if that happened!

Al