Search CompleteMarkets

...See Exhibit 7 and Factor 19. MISCELLANEOUS CONSIDERATIONS Is there any ...uating a carrier’s financial stability and minimizing the risk of an E&O c...

... include a c' (now discontinued), q', w', or x' rating modifier? No. Have there been significant or multiple declines in the company's Best's Rating in the past five years? Yes. See Exhibit 7 and Factor 19. MISCELLANEOUS CONSIDERATIONS Is there any other adverse information on the company from Best's or elsewhere? A yes/no for this factor depends on a more detailed review of the Best's data and/or other pertinent data known to the agency. Summary and Conclusion Generally, eight ... marginal vigilance, this real-life insolvency could have been predicted' at least a year or more before the insurer went under Disclaimer: This Checklist provides a tool for documenting financial and marketing information about P/C insurers in order to establish due diligence in the event of Errors and Omissions claims against agents. No warranties, express or implied, are made that the list is either a predictor or a guarantor of a company's financial condition. To illustrate the use of the Insolvency Checklist, please download this financial information excerpted from a 1983 ... . Best report on a real carrier we'll call the Big Red Insurance Co. (to protect the innocent, guilty, and embarrassed) . Big Red was declared insolvent in 1985. The document presents seven categories of A. M. Best information as exhibits:General Information (Exhibit 1) Assets, Liabilities, Surplus & Other Funds (Exhibit 2) Investment Data (Exhibit 3) Summary of Operations (Exhibit 4) Comparative Financial and Operating Exhibit (Exhibit 5) Underwriting Experience (Exhibit 6) Best's Operating Comments ( ...

... . For example, an agency with commission revenues of $750,000 might be shrunk' to reflect such noncontractual revenues as contingent commissions. The consultant also must question the persistence of interest on cash flow, Life and Health commissions, and that mysterious visitor dubbed miscellaneous income. This surgery might result in an expected pretax income of $700,000- some $50,000 less than the figure on the income and expense statement. Income and expense statements normally show two expense categories: selling expenses and operating expenses. Each ... productivity of personnel Historical trend of business growth or attrition Dependence on large-account commission revenue General spread of book, commercial to personal History of contingent commissions Ability to deliver competitive rates Mix of products available to various industries The agency's pricing latitude with carriers. The agency's underwriting authority Errors & omissions history and coverage History of prior acquisitions Employment contracts with producers/staff Ability to configure client product needs Control of major accounts, by individuals Controlled business of the agency (The insured businesses are owned by the agent or a family member. ... Dependence on a specific industry for revenue Status of any litigation involving the agency IRS actions, if any, against the agency Litigation involving key agency personnel < Login or Register (for FREE) to gain access to thousands of other great articles. Need more reasons to join? Need insurance for you, your business or your family? Get quality appointments - Save yourself a whole lot of time & money when you use our directory of carriers, wholesalers and service providers. Negotiate lucrative contracts with carriers and wholesalers. Net result ...

...hat mysterious visitor dubbed 'miscellaneous income.' This surgery might resul...ncy's underwriting authority Errors &amp; omissions history and coverage History of prior a...

...hat mysterious visitor dubbed 'miscellaneous income.' This surgery might resul...ced a greater pretax multiple of ANEBT-and greater value-than the other approa...

..._________________________ 31. Miscellaneous. (a) This Agreement may not be m... EXHIBIT 14 DISCLOSURES OF THE SELLER AND STOCKHOLDER PURSUANT TO SECTION 14