Progressive Suing Independent Agent

ANicole

New Member
1
Had a client with progressive, she called in to remove UM coverage, the agent that took the call did not get the client to sign the UM rejection form. The client had a loss filed against her UM coverage of $25,000 which was honored because of the failure to get the rejection form signed. Progressive filed a claim against my agency to recover the $25,000 but this was rejected by E&O because they do not cover claims like this because technically Progressive is not my client. Does anyone have any experience with this? Kind of lost on what to do next? Has any agent ever been sued by Progressive directly?
 
Had a client with progressive, she called in to remove UM coverage, the agent that took the call did not get the client to sign the UM rejection form. The client had a loss filed against her UM coverage of $25,000 which was honored because of the failure to get the rejection form signed. Progressive filed a claim against my agency to recover the $25,000 but this was rejected by E&O because they do not cover claims like this because technically Progressive is not my client. Does anyone have any experience with this? Kind of lost on what to do next? Has any agent ever been sued by Progressive directly?

if UM is optional coverage in Georgia, does Georgia or Progressive normally require a rejection signature for UM? do they require it for every single optional coverage available? I doubt it---I am guessing Progressive was just fishing for an easy settlement from the E&O carrier as I can see them having a basis as they were also negligent in processing the change if they customarily require a rejection signature
 
Back
Top