E&O Policy for FE Newbie/Introduction

[NewDay]

I have been reading posts on this forum for a couple of months. I want to thank all of you for sharing your time and knowledge. I have learned a lot. I just joined and I am looking forward to learning more and sharing anything that I think would be helpful.

I need some help in finding E & O coverage. So far, the policies that I have found do not have broad enough coverage. I want a minimum of 1 M/2 M with an additional 1M for defense costs. I have no insurance sales experience. I understand that the coverage will not be cheap.

A little about me:
1) I am in the planning stage of my insurance sales career. I will be focusing on final expense insurance and maybe, Medicare supplements.

2) My insurance experience has been in auto accident claims management (about 25 years) for one of the larger P & C carriers. I retired early several months ago. Since I want to be independent, working with my former employer is not an option.

3) One broker (Agents Insurance Services, Inc.,) indicated that she may be able to find a policy for me, but I would need at minimum, letters of intent from the carriers that will appoint me when I have E&O coverage.

4) At this point, I have not finalized who I want to contract with. I was leaning towards Ritter Insurance Marketing, but they told me that "job shadowing" an experienced agent was not an option. However, they did offer to help me find an upline that might take me on. Also, they have online resources that I can use to educate myself. I am undecided whether to apply for contracts through Ritter or another organization that will directly provide one on one training.

5) I have life/health licenses in Illinois (resident) and Maryland. My application is pending in Pennsylvania. Potential FE carriers: Monumental, United Home Life, RNA and Foresters. Do you think that it would be difficult to get letters of intent from these carriers (through Ritter or another upline)?

I would appreciate your advice regarding E&O coverage (or anything else that you wish to share). It would be great if I had several E&O sources. (FYI, I already posted a similar message in the E&O section. Posted it here to reach more FE agents.) Big thanks!

 

[Newby]

I'm not sure why you are over-complication things. Why do you need letters of intent? Just contract with the carriers. Then sign up for E&O insurance. You don't have to take the minimum with any carrier. Just tell them what you want and they will sell it to you.

Ritter is an excellent choice for Medicare agents. Not really known for FE. How did you come to choose them if your focus is on Final Expense?

 

[NewDay]

Hi Newby,

Thanks for responding. I have read many of your posts and have learned much from them.

E&O INSURANCE?
I am trying to keep things simple. I just want 1M/1M with defense costs outside of the limits (preferably 1M). Before I posted, I tried E&O For Less and a few others, but without success. Either the carrier did not offer the coverage or would not offer it to an inexperienced agent. I know that I can get higher limits, e.g., 1M/2M, 1M/3M neither of which accomplishes what I want.

Letters of intent - They are required by the broker in order to attempt to find a carrier for me. Now, here is where it gets a little more complicated - whether one of their E&O carriers will insure me is in part dependent upon which Life/Health insurers I am contracted with as well as which organization I go through to get the contracts (if I don't contract directly).

If you experienced folks say that you do not know of a carrier/broker who can provide the coverage I am seeking, I plan to contract with "A" rated carriers and see what the E&O broker can do for me and move on. " I ain't gonna spend a lot of time hunting for a unicorn."

WHO TO CONTRACT WITH?
Why Ritter? I will be relocating to Central Maryland, about 2 hours from their office. They seem to have a good reputation on this Forum for senior products. I thought that it would be easier to get training and support from them. However, I am open to suggestions.

I am available to travel to spend a few days with an experienced agent. Also, if I need to just focus on one product, I would probably go with FE and perhaps get into Medicare supplements later.

All advice is appreciated. Thanks again.