Disclosure

[jdeasy]

You are 110% correct here. Insurance companies will hang their agents out to dry in a New York minute. This isn't about having the insurer coming to your defense. It's about having your E&O maintain it's defense.

How would there ever be an E&O problem is you made no error nor omitted anything?

If you answer the questions on the app peoperly and answer anything asked on the agent's report I can't where a problem would arise.

The companies pay thousands of dollars to design the applications. We are not to read anything into them or out of them.

Of course the company can. I just did a POS interview today and the rep came back on after going through the application questions and started asking the lady questions that were not on the application. Such as a heart attack 5 years ago when the application asked 2 years. They asked about a cancer 6 years ago when the application asks 2 years.

The company can sure bend their own rules but the agent better not.

 

[FEX Quotes]

How would there ever be an E&O problem is you made no error nor omitted anything?

First off let me preface with the fact that E&O claims are far less frequent in life insurance than other lines. Now consider the FE market and I would venture to say the incidence rate drops even further. That being said there's an old saying - you don't have to be right to sue.

Just because you know you did nothing wrong, there is nothing preventing someone from taking action against you. Should you unexpectedly receive a call or letter from an attorney representing an aggrieved client or beneficiary of a client, you will learn very quickly how valuable your E&O is. The E&O policy typically consists of two parts - Defense & Damages.

Even if you made no errors or omitted anything, then no damages should be awarded, but the defense still has to be paid.

If you answer the questions on the app peoperly and answer anything asked on the agent's report I can't where a problem would arise.

See my remark above regarding you don't have to be right to sue. With simplified issue apps and a handful of yes/no questions coupled with relatively low face amounts the likelihood of any litigation is minimal.

Circling back to the original question on this thread by TPAAgent, I would absolutely write this case, but in the same breath I would also be somewhat proactive with my documentation knowing how insurers can be.