I haven't been around the forum for a while, but I wanted to share what happened to me to show you why you MUST have E&O insurance.
For the purposes of this discussion, I started selling Final Expense Insurance for an independent agent, and was told by a large, well discussed on this forum, agency that "no, you don't need to get E&O insurance, you don't need to worry about that". Incidentally, the "manager" who told me that is not even in the insurance industry anymore, and had only been licensed himself for a few weeks before telling me this.
I got a different opinion from a guy here named Todd King, who said you MUST have E&O insurance, no matter what, and if you can't afford to do that through some of the preferred carriers who give you a discount, you need to wait to sell final expense insurance until you can get it.
I got the E&O insurance, and went on my merry way of selling final expense policies, with all the headaches that go with that.
Among others, I sold one policy to a husband and wife, they were very nice, the man was in his 50s and a military veteran. He did all the questions for the coverage and did the medical questionnaire, even while I was present. The thing is, despite being a Christian, talking about his faith and the military background we both had, being an all around good guy, he LIED on his medical questionnaire, about having cancer. The very day he took out the policy, he and his wife were going in for his chemo treatment.
About a year later, the man dies, the wife calls me all upset, and I get her in contact with the final expense company, who does a review on his claim, and finds out about the cancer, and that he lied on his policy application. They pay out a reduced benefit because of this, and the wife sues me and the insurance company, or tries to.
After about a year of going back and forth, with a trial date set, and me stressing out about doing nothing wrong but being snowed by someone lying to me, the lady finally settled, and the judge dismissed the case, with prejudice, which is a good thing.
The moral of the story is that I've sold hundreds of MAPD policies, life insurance, investments, and LTCi, and final expense. I KNOW what I'm doing, and I have never had a complaint about what I do. I do everything by the book, and take my reputation seriously. But one rotten apple can spoil all that, and in a society where lawyers are chomping at the bit to take on big insurance companies, all it takes is one person, and you could be in my shoes.
I was very fortunate.
The chances of this happening to you are low, but do you want to risk it? Do you want to roll the dice and not get E&O insurance to protect yourself and your family?
Believe me, it is NOT worth the risk. So if you are starting out, and wondering if you need to get E&O insurance, no matter what anyone tells you, act in your own best interest, and GET COVERAGE.
For the purposes of this discussion, I started selling Final Expense Insurance for an independent agent, and was told by a large, well discussed on this forum, agency that "no, you don't need to get E&O insurance, you don't need to worry about that". Incidentally, the "manager" who told me that is not even in the insurance industry anymore, and had only been licensed himself for a few weeks before telling me this.
I got a different opinion from a guy here named Todd King, who said you MUST have E&O insurance, no matter what, and if you can't afford to do that through some of the preferred carriers who give you a discount, you need to wait to sell final expense insurance until you can get it.
I got the E&O insurance, and went on my merry way of selling final expense policies, with all the headaches that go with that.
Among others, I sold one policy to a husband and wife, they were very nice, the man was in his 50s and a military veteran. He did all the questions for the coverage and did the medical questionnaire, even while I was present. The thing is, despite being a Christian, talking about his faith and the military background we both had, being an all around good guy, he LIED on his medical questionnaire, about having cancer. The very day he took out the policy, he and his wife were going in for his chemo treatment.
About a year later, the man dies, the wife calls me all upset, and I get her in contact with the final expense company, who does a review on his claim, and finds out about the cancer, and that he lied on his policy application. They pay out a reduced benefit because of this, and the wife sues me and the insurance company, or tries to.
After about a year of going back and forth, with a trial date set, and me stressing out about doing nothing wrong but being snowed by someone lying to me, the lady finally settled, and the judge dismissed the case, with prejudice, which is a good thing.
The moral of the story is that I've sold hundreds of MAPD policies, life insurance, investments, and LTCi, and final expense. I KNOW what I'm doing, and I have never had a complaint about what I do. I do everything by the book, and take my reputation seriously. But one rotten apple can spoil all that, and in a society where lawyers are chomping at the bit to take on big insurance companies, all it takes is one person, and you could be in my shoes.
I was very fortunate.
The chances of this happening to you are low, but do you want to risk it? Do you want to roll the dice and not get E&O insurance to protect yourself and your family?
Believe me, it is NOT worth the risk. So if you are starting out, and wondering if you need to get E&O insurance, no matter what anyone tells you, act in your own best interest, and GET COVERAGE.
