e and o question
- Thread starter PhxSunsFan
- Start date
As has been said, different companies do different things. You'll have to check with each carrier to know for sure.
- 2,206
Yep - Big Soap Box over here.
@PhxSunsFan - Id find a specialist in E&O and explain your situation. If you are receiving residuals still its hard to see how there is not at least some exposure here.
- 29,515
Why not call his E & O carrier and ask them.
This is the language in my E&O and I believe it is pretty much the standard. The policy has to be in force at the time of the claim is made. You may no longer be servicing the business or even being paid for it but you could be sued for something that took place at the time of application. For example failure to write an appropriate amount of product. This type of suit against the agent by the beneficiary after the insured's death. If you have dropped your E&O, you will end up paying for your defense and any judgement out of pocket.
This insurance provides professional liability (E&O) insurance coverage for properly licensed individual insurance agents and
insurance consultants. It is written on a “claims-made and reported” basis and applies only to “written claims” first made against an insured and
reported to the Insurer during the Named Insured's Certificate Period. No coverage exists for claims first made or reported after the Named
Insured’s Certificate Period unless an extended reporting period applies
This insurance provides professional liability (E&O) insurance coverage for properly licensed individual insurance agents and
insurance consultants. It is written on a “claims-made and reported” basis and applies only to “written claims” first made against an insured and
reported to the Insurer during the Named Insured's Certificate Period. No coverage exists for claims first made or reported after the Named
Insured’s Certificate Period unless an extended reporting period applies
Specialists and attorneys won't be able to tell you if the company requires it or not. You have to start with the companies and then expand from there. Next would be the E&O carrier themselves. If you don't get your answers from these two sources, then maybe consult an attorney.
You're going to end up finding out exactly what Rousemark said.
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- 19,033
CalSurance
- 5,290
That's because your car insurance was likely written on a "per occurence" basis, and your e&o policy is likely on a "claims made" basis. For that reason the op would need to purchase an ERP or "tail" policy.
E&O insurance is a "claims made" type of coverage. It is not, and I repeat NOT, coverage that is about when the "error" or "omission" actually occurred. Rather, it's about when someone files a claim against you.
E&O claims are often filed many years after the moment that the error/omission occurred. Messed up the beneficiary designation on that annuity contract? Nobody will have a clue until 12 years later and the person dies; what's worse, you could be sued for not advising the annuitant to name a new beneficiary after the named beneficiary died. All that money floods into the estate, increasing costs of admin and hungry creditors eat it all up. Yep; you are going to be sued; the family might not win the case, but you will be sued. And think of all those annuity contracts that don't waive surrender fees upon death of the insured; I promise you that I myself would file a lawsuit against the agent who sold something like that to my mother three years before her death (and I, as beneficiary, get less money upon settlement because of an unavoidable 6% early surrender fee).
