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Do you need E&O to Sell Life Insurance?

Feb 14, 2019

  1. Craumas
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    Craumas New Member

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    I currently had to take a break from the life insurance business because of some health issues, and because of that I also had to drop my E&O because it was becoming too expensive while I recovered. I remember reading somewhere that I didn't have to need E&O to sell things like mutual of omaha. But I had it anyways just in case. So my question is, do I need E&O to sell life insurance in Tennessee?
     
    Craumas, Feb 14, 2019
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  2. Todd King
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    Todd King IMO/FMO Owner

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    Some companies require it and some don't. Mutual does require it on certain products, which are Critical Illness, Disability, and LTC. None of their life products require it.

    So, you'll have to find the companies that don't require it, but I would still get it as soon as you can. You really shouldn't be without it.
     
  3. Craumas
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    Craumas New Member

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    Thank you for the quick response. Yeah I'll get it as soon as I can, I just couldn't afford it at the time because of medical bills and other things that became a higher priority.
     
    Craumas, Feb 14, 2019
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  4. myinsurebiz
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    myinsurebiz Guru

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    Some require it - but, man, it's so unnecessary . . .

    This may be dated - but, mostly accurate:


    Insurance Field Marketing Organization in Roanoke, VA | TR King Insurance Marketing
     
  5. fed up
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    fed up Guru

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    Real case: Husband dies in an accident, has no life insurance. Family sues agency for not impressing the need for insurance on the husband. Family wins suit against agency
     
    fed up, Feb 14, 2019
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  6. adjusterjack
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    adjusterjack Guru

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    Can you afford $20,000 to hire a lawyer to defend a lawsuit for an alleged error even if you did nothing wrong? You buy the insurance to pay for defense costs so you don't have to. And heaven help you if you did do something wrong.

    Here's an example: Man takes out a $100,000 life policy. Dies in an auto accident 6 months later. Life company conducts a contestable death investigation and learns that the insured concealed alcoholism and rehab from the application (question specific). Life company denies claim, rescinds policy, refunds premium. Widow sues the life company claiming that her Hispanic husband didn't speak English well and didn't understand the question. Life company defends and heads for trial. During discovery finds out agent also Hispanic and fluent in the language. Cross claims against agent. Jury doesn't buy the "didn't understand," finds in favor of the life company and against the agent. Defense costs run into the tens of thousand plus the $100,000 judgment that the agent has to pay.

    Or, maybe his E&O insurance company paid for it all.

    Get the picture?

    Anybody who sells anything and doesn't have appropriate liability insurance is a fool. No matter how minimal the risk is, it only has to happen once and you get wiped out.
     
  7. rousemark
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    rousemark Still Here!

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    Only if you don't want to take a chance on loosing everything you have or will ever have.
     
  8. Markthebroker
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    Markthebroker Guru

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    If you are pitching people life insurance to protect their families in the event of the unforeseen, then perhaps you should again ask yourself if you should have e&o insurance, then give that pitch in front of the mirror.
     
  9. Craumas
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    Craumas New Member

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    Thanks everyone, I bit the bullet and decided to get my NAPA coverage again.
     
    Craumas, Feb 14, 2019
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  10. rousemark
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    rousemark Still Here!

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    Good move! :)
     
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