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...f homes, personal property, and automobiles to trusts. Many older people cede ... carefully scrutinize the financial performance and ratings of the standard an...

... This means that, as they write new and renewal policies, process changes, and interact with clients, insurance professionals must be aware of problems that can arise. OWNERSHIP TRANSFER For example, let's take a look at transferring ownership of homes, personal property, and automobiles to trusts. Many older people cede ownership of such property to adult children to reduce estate taxes or qualify for Medicaid. However, Personal Lines contracts don't include trusts in their definition of "insured," and they don't recognize legal entities. They're written to ... Homeowners policy doesn't cover. Exercising due diligence here means asking the questions and getting a handle on the types of exposures. Conflict between Personal and Business exposures might be resolved by writing the client's Homeowners and Home Business policies with the same insurer. DIRECTORS & OFFICERS LIABILITY Nonprofit and for-profit corporations both have an obvious D&O exposure that the insurance professional should deal with in fact-finding and at renewal. What about the exposure of an individual who's a director for either type of corporation? The Personal Lines agent needs to be aware of ... If you go ahead, carefully document your file with written confirmation that the client understands their decision and that the client received a copy of the confirmation. It's probably preferable to have an agency policy never to use a carrier that A.M. Best's or another secure ratings organization rates below a certain level. When a carrier falls below the standard, agency and client must decide how to proceed. CONCLUSION These are only a few of the emerging E&O exposures that agencies face. Making sure producers and staff know about them and ...