Errors & Omissions Coverage Questions

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Who is an Insured under the program?

  • Any Agent/Rep enrolled in the E & O Program.
  • Any Corporation, Partnership, or business entity that is owned or controlled by an Insured Agent/Rep, but only with respect to those operations of the business entity related to the covered Professional Services provided by an Insured Agent/Rep.
  • Any secretarial, clerical or administrative employees of the Insured Agent/Rep while acting within their capacity as such, solely while acting by or on behalf of an Insured Agent/Rep as long as they work solely in that capacity and do not produce, sell insurance, or receive any commission income.

What type of policy is this?

This policy is a 'Claims-Made and Reported' policy, which means the policy only covers those Claims against you that are both made and reported to the Insurer during the same policy period. Claims made against you must be report immediately to Continental Casualty Company, in written form along with supporting documents, in order to be recognized by your E&O carrier. Additionally, you must immediately report incidents or circumstances, which may result in a Claim against you, provided (1) you do so while an Insured under this policy and (2) you first become aware of the incident or circumstance during the policy period.

What activities are covered under this policy?

Sale or attempted sale or servicing of:

  • Life Insurance
  • Accident & Health Insurance
  • Long Term Care Insurance
  • Disability Insurance
  • Fixed Annuities (Equity Indexed Annuities)
  • Employee Benefit Plans, Individual Retirement Arrangements, IRAs and KEOGH Retirement Plans
  • Variable Products
  • Mutual Funds
  • Financial Planning incidental to the sale of the above products

What exactly am I covered for in the sale and/or servicing of Employee Benefit Plans?

You are covered for the sale and/or attempted sale of Employee Benefit Plans, IRA's and KEOGH Retirement Plans. In addition, you are covered for your administration of Employee Benefit Plans (consultation with participants in an employee benefit plan in order to explain the provisions of such plan, enrollment, record keeping and filing reports with governmental agencies). There is no coverage for the design or implementation of employee benefit plans or for third party claims administration.

Am I covered for any activities related to Property and Casualty Insurance?

No, you are not covered for the sale of Property and Casualty Insurance. You are covered for your referral of Property and Casualty Insurance.

Does the policy cover claims arising out of tax advice to the clients?

The policy will cover claims against you for rendering tax advice as long as it was incidental\ advice given in conjunction with covered Professional Services.

What if I have sold an insurance product from an insurance company that becomes insolvent?

If the Carrier was rated "A" at the time of placement the insolvency exclusion will not apply.

Does the policy cover products offered by other insurance companies?

Yes, it provides coverage for the sale, attempted sale or servicing of non-AIM sponsored products. The retention is higher for non- AIM sponsored products.

Am I required to report all circumstances that could give rise to a Claim?

The policy requires you to immediately report circumstances involving a Wrongful Act, which may reasonably give rise to a future claim. Continental Casualty Company will determine what Claims are covered under the policy.

How do I determine if something is qualified as a Claim?

a. A written demand for monetary damages; or
b. A Civil adjudicatory, or arbitration proceeding for monetary damages

Who should I report claims to?

Continental Casualty Company
By Email:

By Mail:
CNA - Claims Reporting
PO Box 8317
Chicago, IL 60680-8317

Is there an Extended Reporting Period, (ERP / tail) provision?

If an agent retires, becomes disabled or has deceased under the policy provisions can purchase a 3 year Extended Reporting Period ("tail") for 250% of their annual premium. Coverage must be requested within 30 days of the agent's retirement, disability or death.

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