Life/Health Insurance Agents: A+ Errors and Omissions Insurance Program

Claims Made and Reported Policy Form

Experience has demonstrated there is a lot of confusion on the part of many producers and agents concerning the operation of their Claims Made and Reported Errors and Omissions coverage. This confusion can be costly, and can allow the agent to become a victim of one or more potential pitfalls. We hope the following information will be helpful.

Following are some key terms you should know:

“Occurrence” — An event or chain of events that ultimately causes a claim. Example:  The sale of a disability income policy

“Claim” — An actual demand for damages (money). Most of the time, evidenced by a lawsuit, although it can be as simple as a letter from the alleged injured party or their attorney requesting reimbursement.

“Incident” — Any statement, action or AWARENESS of a situation that could be perceived as having a potential for an E&O claim being presented in the future. This could be in the form of a statement made by a client during a phone conversation, a client’s letter, or your just feeling uncomfortable about a situation.

“Prior Act” — An occurrence before the effective date of current E&O coverage. Following is a scenario showing how the Claims Made E&O coverage works:

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