Feel Like Being Almost Blackmailed

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That is a very good point Mark. We all need to do that type of thing as much as possible. It is one way we can say thanks to Sam.
 
I know I'm looking at NAPA and Calsurance how else offers a decent policy for Life & Health fixed and fixed indexed annuites, DI, Med Sup and MA coverage must be covered (I know I don't focus on the MA market and many have seen my posts about it I just want to be covered for everything my license allows me to sell in case things change.)

I had NAPA/Cal on my L&H before I moved to P&C. Didn't care for them. Had a bad experience with their customer service. I would have done E&O For Less, but they don't accept Amex, and that is the only agency card I have.

E&O For Less - Start accepting Amex!
 
E&O for less/Marsh is good. And its nice not being tied to a carrier appointment.


A bit more comprehensive option would be a policy through NAILBA who uses Everest to underwrite it.

I used the Aurthor J Galligher agency with a referral discount from Chittenden Group.

This link tells you about the discount code to use.

This link actually links to the policy info and online app.

I like this option because it clearly states that it covers Financial Planning and Tax Advice that is incidental to the sale of your products.

It also covers NQDC which I need.

Thanks for the link, I feel much more comfortable with this option, even if it costs an extra $230 per year. I like that it states coverage from employee benefits, deferred comp, and incidential financial planning related to the sale.

I do dislike paying E&O premiums, mine are over $3,200 per year. $2,500 per year through my B/D, however, they only cover carriers approved by them and at a $50,000 deductible. I am completely on my own for the deductible and any outside carriers I use, which is a substantial part of my business due to the employee benefits arm. Hopefully I never have to use it.
 
Thanks for the link, I feel much more comfortable with this option, even if it costs an extra $230 per year. I like that it states coverage from employee benefits, deferred comp, and incidential financial planning related to the sale.

I do dislike paying E&O premiums, mine are over $3,200 per year. $2,500 per year through my B/D, however, they only cover carriers approved by them and at a $50,000 deductible. I am completely on my own for the deductible and any outside carriers I use, which is a substantial part of my business due to the employee benefits arm. Hopefully I never have to use it.

Holy Crap....and I thought the $5k deductible on my last B/Ds E&O sucked...That and the B/D as a whole only had like $20 million of aggregate coverage so a bad branch could wipe out the whole B/Ds coverage.
 
Norwayguy said:
Holy Crap....and I thought the $5k deductible on my last B/Ds E&O sucked...That and the B/D as a whole only had like $20 million of aggregate coverage so a bad branch could wipe out the whole B/Ds coverage.

What is b/d?????????????
 
Broker/Dealer. Their reps' E&O is typically much higher (due to securities transactions) and often does not cover "outside business activities" like fixed insurance and annuities not written through the B/D.

There is a lot of money in that E&O. I really wonder just how much is a kickback sometimes.

Just an example. One company boasts a field force of 4,000+ agents. Let's assume 3,000 are securities registered. At one time, the E&O was $120/mo for $1,440 a year for a total of $4,320,000 in premium. I doubt claims are anywhere near that high or FINRA would have been all over the company.
 
There is a lot of money in that E&O. I really wonder just how much is a kickback sometimes.

Just an example. One company boasts a field force of 4,000+ agents. Let's assume 3,000 are securities registered. At one time, the E&O was $120/mo for $1,440 a year for a total of $4,320,000 in premium. I doubt claims are anywhere near that high or FINRA would have been all over the company.

Nothing would surprise me when it comes to working with some of these B/Ds...
 
Nothing would surprise me when it comes to working with some of these B/Ds...

The one I am referencing is an old line mutual. There is another insurance company with a career force and even higher premiums. I don't believe they have near that many agents, but again I wonder how much is getting kicked back to executives or the company as a whole.
 
I have seen E&O used as a profit center for Real Estate Brokerages... I had one guy that was paying anywhere from $90-225k per year (depending on the deductible) and collecting over $1m from his agents. He was charging them $400 per quarter or $1600 per year. The best they could find on their own was a $2500 yr minimum premium but you had 800+ agents sharing a $5m limit in CA with high RE prices.
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I have seen E&O used as a profit center for Real Estate Brokerages... I had one guy that was paying anywhere from $90-225k per year (depending on the deductible) and collecting over $1m from his agents. He was charging them $400 per quarter or $1600 per year. The best they could find on their own was a $2500 yr minimum premium but you had 800+ agents sharing a $5m limit in CA with high RE prices.
 
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