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Should I keep E and O? A change in my circumstance

Jan 21, 2018

  1. somarco
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    somarco GA Medicare Expert

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    Tail coverage isn't what you think . . .

    Mostly used in P&C and pertains to runout claims. Those incurred while the policy was in effect but not submitted until after the policy terminates.

    Health insurance is generally considered short tail coverage since claims submitted more than 6 months after the end of the policy (generally) are not eligible for reimbursement.

    WC is long tail. Claims are tied to the individual and the incident that created the claim. Joe is injured on the job in 2010 but is still receiving treatment and/or payout 7+ years later. Those claims are charged against the 2010 policy.
     
    somarco, Jan 25, 2018
    #11
  2. VolAgent
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    VolAgent Guru

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    Remember, E&O is a Casualty policy form. Most carriers do offer tail coverage for it. The question is for how long and at what price?

    E&Oforless.com, which use to be a forum sponsor, offers it. But basically you are just paying for that period of time in advance, so no real benefit other than you can forget about it. Also only offered for 2 or 3 years, so doesn't go out super long either.
     
  3. somarco
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    somarco GA Medicare Expert

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    Thanks Kirby, but I was addressing Tyler's question about "tail". And yes, E&O is casualty coverage.

    Frankly I have never researched E&O to see if they are an occurrence policy or claims made. But I do believe the bulk of them are claims made however many of them will pay for claims incurred prior to the effective date if you have had continuous coverage without a break.
     
    somarco, Jan 25, 2018
    #13
  4. somarco
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    somarco GA Medicare Expert

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    Presuming you have current E&O coverage, you should probably keep it at least for a while. I believe most policies are claims made. They would probably pay for any claims incurred prior to the policy date as long as you had continuous coverage.

    You may view your liability as minimal based on just "servicing" existing policyholders, but anything can happen.
     
    somarco, May 12, 2019
    #14
  5. WinoBlues
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    WinoBlues Guru

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    Here is a different idea for you.

    In read your past post it does no seem that straight commission is just your thing. Absolutely nothing wrong with that.

    Depending on the size of your book, how old the term polices are and so on. Maybe you find someone to pay a year or so of your E and O and you AOR your book to them. With or without renewals. You get covered, you don't have to service a book for free, the clients get an active agent, the agent gets an additional 'warm' market to work.
     
  6. myinsurebiz
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    myinsurebiz Guru

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    You can sell Med Sups and MA's over the phone with One Life America and get an hourly wage, commission + have your E&O covered. Holler at me . . .
     
  7. Markthebroker
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    Markthebroker Guru

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    I have to say, I love that the "Worldwide Expert of Everything" has never heard of tail coverage.
     
  8. jerryrut
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    jerryrut Guru

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    There have been times that I wished I had tail coverage, like coyote ugly situations:)
     
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