P/C agents often have reviewed contracts and leases in conjunction with writing Contractual Liability coverages. In many cases, agents will advise clients to reject hold-harmless clauses which place undue hardship on them. Yet insurance agents themselves may be in the grip of hold-harmless clauses, which could lay immense financial burdens on them, even if they are totally innocent of any wrongdoing. We refer to the producer or general agent (GA) contracts of some-not all! -- Life carriers. Unfortunately, some of these carriers are among the best-known career or brokerage companies and, even worse, agents often aren't aware of the poisonous clauses until it's too late and they're sued.

The National Association of Insurance Commissioners (NAIC) spent almost five years developing the Model Illustration Regulations currently in use - in one form or another - in most states. The regulations were developed to help the consumer have a better understanding of how Life insurance policies worked, as well as to better differentiate between guaranteed and non-guaranteed elements of a Life insurance policy.

WHO SHOULD SELL LIFE? Selecting the party that will sell your Life insurance is a crucial decision. There are pros and cons to every possibility. Life business can be sought by: P/C Pro...