Inquiring Agents want to know ... FE Carriers and Financial Strength

[shonceman]

I get it, but there's a first time for everything.

@DonP just pointed out, the margins are usually too low for a lawyer to even consider it.

My E &O has a $0 retention (deductible) for life & health, but $5k for annuities and/or P & C. Most of my FE policies are $10,000 & less, so if a case were to arise that E&O wouldn't cover, it wouldn't be that much different from my portion on a P&C claim.

(I knew it already, but just noticed again that my NAPA E&O is actually a certificate, not a policy. It also says that my coverage is with a non-admitted carrier. I hope I never need to use it!)

 

[Tahoe Ray]

Lol. What lawyer would take a $10 k claim getting only 60% on retainer . They'd laugh at the client .

Maybe they'd go Erin Brockovich on you and knock on all of your client's next-door neighbors to see if you sold them policies from this theoretical insolvent company too...even throw a barbeque for them.

Haha!

 

[shonceman]

Maybe they'd go Erin Brockovich on you and knock on all of your client's next-door neighbors to see if you sold them policies from this theoretical insolvent company too...even throw a barbeque for them.

Haha!

Hmmm...good point. The lawsuit in "The Rainmaker" was against a debit company, wasn't it? (The lawsuit wasn't about life insurance, though. It was about a cancer policy. @rousemark , you oughtta think about that!)

 

[Tahoe Ray]

Hmmm...good point. The lawsuit in "The Rainmaker" was against a debit company, wasn't it? (The lawsuit wasn't about life insurance, though. It was about a cancer policy. @rousemark , you oughtta think about that!)

Do you remember how that movie ended?

 

[DayTimer]

Most of my FE policies are $10,000 & less, so if a case were to arise that E&O wouldn't cover, it wouldn't be that much different from my portion on a P&C claim.

I guess I am wondering what happens if a carrier fails due to malfeasance (embezzlement, fraud) and the agent has 100's of policies with that carrier.

I guess I don't really know exactly what E&O is for then when it comes to FE, and yet the majority of FE carriers require it, even if the agent is only appointed for FE.

Imagine agents who have a book of business with Colorado Bankers. Is this not going to be an issue for them as well? Maybe not.

 

[DonP]

Maybe they'd go Erin Brockovich on you and knock on all of your client's next-door neighbors to see if you sold them policies from this theoretical insolvent company too...even throw a barbeque for them.

Haha!

Sue me for what ?Everything in the policy guaranteed form the pitiful cash values to the tiny death benefit .The contract will be fulfilled

 

[DonP]

I guess I am wondering what happens if a carrier fails due to malfeasance (embezzlement, fraud) and the agent has 100's of policies with that carrier.

I guess I don't really know exactly what E&O is for then when it comes to FE, and yet the majority of FE carriers require it, even if the agent is only appointed for FE.

Imagine agents who have a book of business with Colorado Bankers. Is this not going to be an issue for them as well? Maybe not.

I have a life policy 33 yrs old . The policy was sold at least 3 times . The policy has performed just as the contract said . Conseco owned at one time and I know they had big financial issues.

 

[shonceman]

Do you remember how that movie ended?

Are you asking me for a spoiler?

 

[Tahoe Ray]

Are you asking me for a spoiler?

Lol...no. I've seen that movie a bunch of times because I like it.

Without giving too much away for others, everyone kind of loses.

 

[Tahoe Ray]

Sue me for what ?Everything in the policy guaranteed form the pitiful cash values to the tiny death benefit .The contract will be fulfilled

It was a joke...I thought you'd get that with the "haha" part.