Group Errors & Omissions Program
Newly licensed agent E&O insurance
Requirements
Newly licensed agents — Life & Health agents licensed less than 2 years with commission income less than $100,000 and no prior E&O coverage.
Payment options
Monthly In full
The waiver shall apply only to those Agents who have participated in the SuranceBay E&O program continuously for twelve (12) months immediately preceding the date the Claim is made and reported.
Total cost includes premium and administrative fee.
Please review the policy for complete terms, conditions and exclusions.
Coverage:
- The insurer shall pay Damages on behalf of the Agent as obligated as a result of a Claim made against the Agent and reported in writing to the Insurer during the Certificate Period. The Insurer shall also pay any Damages allowed by the Policy, or reported during an Extended Reporting Period, if such period applies, for a Wrongful Act or Interrelated Wrongful Act committed by the Agent solely in relation to the rendering or failure to render Professional Services.
- The Insurer will have the right and responsibility to defend an Insured covered by this policy against any Claim for Damages that falls within the policy coverage. The Insurer’s duty to defend the Insured against any covered Claim will cease when the applicable Limit of Liability has been met.
- Claims are covered on a Claims Made & Reported basis where the Claims are first be presented to an Insured Agent or Representative and subsequently reported to the Insurer during the Policy Period.
- An Insured Agent’s business entity is covered but only with regards to the business entity’s liability related to the to the Professional Services the Insured Agent provides that are covered under the Policy.
- The Insured Agent’s policy also covers the activities of both licensed and unlicensed administrative staff in their role of supporting the Insured Agent (provided that they work entirely in that capacity and do not engage in producing or selling insurance).
- Coverage for Prior Acts is included originating from the start date that the Insured Agent began maintaining Errors & Omissions insurance, provided the Agent maintained continuous coverage. The exception is claims arising from Wrongful Acts occurring before the inception date of the policy if the Insured knew or could have foreseen such act may be the basis of a Claim or suit. Proof of continuous Errors & Omissions insurance is mandatory when a Claim or incident is reported.
- Claim Expenses are part of the Limit of Liability and not in addition to it. In other words, Claim Expense paid on behalf of the Insured reduce the applicable Limit of Liability in the amount of the Expense.
- Insurance coverage extends to the sale or maintenance of individual and group Life, Accident & Health, Long Term Care and Disability coverage. Options are available which cover Mutual Funds, Variable Products, Fixed or Indexed Annuities, and P&C Products
Definitions
Agent
Agent or Managing Agent means an Insured person who:
- Holds an agent contract or is actively affiliated with the Sponsoring Company;
- Has chosen to obtain insurance coverage under this Policy, either at the start date of the Policy Period or preceding the expiration date of the Policy Period, and whose coverage is on file with the Sponsoring Company.
- Is stated as such in a Certificate Of Insurance;
- Paid the coverage premium for the selected plan;
- Is licensed by all applicable local, state, or federal governmental authorities to deliver Professional Services where both the client and Agent are located; and
- Is officially registered with the Broker/Dealer with the Financial Industry Regulatory Authority (FINRA), if required for the delivery of Professional Services.
Certificate of Insurance
Certificate of Insurance means the document that states the premium, limits, coverage terms, and endorsements applicable to the Insured under this Policy. Pursuant to the Policy, we issue the Certificate of Insurance to the Named Insured during the Policy Period.
Certificate Period
Certificate Period means the period of time from the starting time and date stated in the Certificate Of Insurance ending with the earlier of the expiration time and date or the effective date of the termination of this Policy.
Claim
Claim means a written demand for Damages (as well as pleadings in arbitration or civil litigation) received by an Insured alleging a Wrongful Act.
A Claim does not include the following:
A Claim does not include the following:
- A non-monetary demand, such as one for declaratory or injunctive relief;
- A criminal proceeding of any kind; or
- A disciplinary proceeding or other proceeding commenced by a self-regulatory agency, official, government or quasi-governmental agency or official, except if the official or agency is a client of the Insured in relation to the Professional Services.
Insured
Insured means:
- An Agent stated as such in a Certificate Of Insurance;
- A Managing Agent stated as such in a Certificate Of Insurance;
- A partnership, corporation, or other business entity owned by and in which a Managing Agent or Agent has ownership interest, or in which a Managing Agent or Agent is an employee, but only insofar as the liability of such organization arises out of the Managing Agent or Agent delivering or failing to deliver Professional Services. Coverage hereunder will not be provided for any alleged or actual Wrongful Act of such organization, but will only apply to a Claim arising out of the alleged or actual Wrongful Act of the Managing Agent or Agent.
- An individual acting on behalf of a Managing Agent or Agent, who is or was an officer, director, partner, stockholder or an employee of a Managing Agent or Agent, or the business entity of a Managing Agent or Agent, provided such individual is not involved with an Agent or general agent contract with any insurance company and only with respect to the Professional Services of the Managing Agent or Agent.
- Heirs, executors, administrators or other legal representatives of a Managing Agent or Agent, in the event of incapacity, death or bankruptcy.
Damages
Damages means settlements, awards, or monetary judgements awarded in a Claim, excluding the following:
- Fines, penalties, or taxes, unless incurred by a claimant and made part a Claim against an Insured Agent;
- Exemplary or punitive damages;
- The multiplied portion of a multiplied damages award.
- The restitution, return, reduction, compromise or refund of charges, commissions, or fees;
- Incurred costs resulting from declaratory, non-monetary or injunctive relief;
- Any matters that are deemed legally uninsurable; and
- Expenses incurred in connection with the Claim.
Policy Period
Policy Period means the period of time when the coverage is in effect, stated in item 1 of the Master Policy Declarations.
Professional Services
Professional Services means tthe following, provided that such coverage has been selected and purchased by the Named Insured and is reflected in the Certificate Of Insurance and on file with the Insurer as being selected and purchased:
- Soliciting, selling or servicing the following:
- Accident and health insurance, Life insurance, managed health care organization contracts or disability income insurance (where a securities license is not required for such products); or
- Fixed or indexed annuities, (where a securities license is not required for such products); or
- Mutual funds or variable insurance approved by the Insured’s Broker/Dealer registered with the Securities Exchange Commission and sold through a Broker/Dealer registered with the Financial Industry Regulatory Authority;
- The sale or servicing of or solicitation of casualty insurance and personal lines property and Casualty and Limited Commercial Lines Property insurance.
- Providing notary services.
- Financial planning, only if performed directly in connection with the solicitation, sale, or servicing of the products listed in paragraph P.1. above.
Retroactive Date
With regards to a Claim brought against an Agent arising from or based on the rendering of or the failure to render any Professional Services described in Paragraph P. of the definition of Professional Services above, the date when the Agent began to maintain a continuously renewed life insurance agent’s professional liability policy, provided there was no interruption in such coverage from the date of the Wrongful Act or first Interrelated Wrongful Act alleged in the Claim to the date when the Claim was first made. Proof of such uninterrupted coverage will be required to be submitted to the Insurer.
Wrongful Act
A negligent act or omission, including a Personal Injury Act, committed by an Insured in connection with the rendering of or failure to render Professional Services to a client