Having Term Life Accounts on Books and Retirement

[Central Coast Agent]

I write commercial P&C but over the years about 15 clients asked me to write some key person / term life for them. This is several years back.

I'm starting to think about retirement.

At some point, through attrition, I will have no commercial P&C accounts left, so no need for E&O insurance.

But won't I always have those 15 Term Life policies attached to me as the agent? At least until the insured passes? What if an E&O claim were to arise from a Term policy I wrote 20 years ago?

I guess my question is: Because I've written term life policies, and they are still out there till paid or cancelled, do I need to keep E&O insurance essentially forever?

What do other retiring agents do with their term policies, its not like you can transfer them to another agency (as they no longer have a premium value to a purchasing agency).

 

[WinoBlues]

I write commercial P&C but over the years about 15 clients asked me to write some key person / term life for them. This is several years back.

I'm starting to think about retirement.

At some point, through attrition, I will have no commercial P&C accounts left, so no need for E&O insurance.

But won't I always have those 15 Term Life policies attached to me as the agent? At least until the insured passes? What if an E&O claim were to arise from a Term policy I wrote 20 years ago?

I guess my question is: Because I've written term life policies, and they are still out there till paid or cancelled, do I need to keep E&O insurance essentially forever?

What do other retiring agents do with their term policies, its not like you can transfer them to another agency (as they no longer have a premium value to a purchasing agency).

I have a thought on E&O however I would suggest calling your carrier and ask them if you would be covered for past actions while you were covered even if you canceled your current coverage.

Your clients - I have taken over many term policies. Some by going out to the client and explaining that their agent has retired and is no longer contracted with ABC Insurance. Some the agent or widow signed over the Bob. On others the agent sent a letter to the clients explaining that they were retiring, suggesting that they do a review of their current policy and needs. Also an introduction.

If you just do nothing it is going to become more and more difficult to service these few clients as the companies terminate you for none production. Not to mention the inconvenience.

All IMohsoHO

Congratulations on retirement.