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...l company’s Liability coverage is primary but with only standard limits, and m...iligence can help reduce the frequency and severity of E&O claims as well ...

...As administer claims, since their primary purpose is to administer, underwrite...The use of PAs will add to the profits and retention of your business.

...y. Your clients view you as their primary information source and expect you to...ile demonstrating your professionalism and your concerns to your clients.

...his Act - (1) 'Insurance means primary insurance, excess insurance, reinsur...k retention groups, purchasing groups, and other interested parties; and (B) the Secretary's analysis of ot...

... can't afford the actuaries, auditors, technicians, and other specialized staff to oversee admitted companies properly. Most states do a commendable job with their limited resources. Your agency can't just pass off its due-diligence responsibility to the regulatory agency. Your clients view you as their primary information source and expect you to inform them of developments that might affect them. Communication with clients is more important than ever amid the company mergers, acquisitions, and realignments, and the expected regulatory changes. For example, although the causes of an insolvency might ... as well as to avoid or minimize an E&O claim. Remember the old saying: An ounce of prevention is worth a pound of cure. Occurrence/claims made, triggers, retroactive dates, and extended reporting considerations are other problem areas, primarily in Liability and Umbrella/Excess Liability policies. You must understand these areas to prevent coverage gaps and to be able to explain them to the client, who then can make an informed decision. In general, when a policy that has been on an occurrence basis continuously ... agency advocate. There are fewer exposures when you go from a hard market to a soft market than when going from a soft market to a hard one. When the market hardens, standard carriers become more selective about what business they write and under what terms. Excess & Surplus Lines (E &S ) carriers increase their writings considerably. When you need to move a standard policy into an E&S market, you must consider a number of due diligence areas, such as: Policy coverage and definitions Restrictive endorsements Occurrence ...

... month, two months? The fact is, the agency should then determine the time frame. Most insurers have no problem with two or three weeks, but it's important to ask the company where it stands on this. Generally, a rental company's Liability coverage is primary but with only standard limits, and most Personal Auto policies are excess over those limits. What about an auto rented outside the United States? The territory definition wouldn't pick up even excess coverage in some countries. One solution is to write an Umbrella policy so ... insurance agents need to be more diligent than ever in analyzing their Errors and Omissions risks and exposures. Some of the areas that open up agency E&O exposures are trusts, cyber risk, Non-Ownership Auto exposures (Personal and Business Auto), D&O Liability, Umbrella & Excess Liability, Employment Practices, home-based businesses, intellectual property exposures, and company solvency issues. Everyone at every agency should keep "due diligence" and "awareness" in mind while taking care of clients. Agents, like other professionals, ... demonstrate their knowledge and skill. The technical and complex nature of insurance raises the standards they must meet. Breaching their duty in a way that injures a client could make the agency liable for the damages. Remember that "perception is reality." If a client perceives that the agency harmed them, the agency will have to defend itself against that accusation. Remember, too, that many other professionals, such as doctors, lawyers, architects, engineers, and CPAs, have much more rigorous training, testing, apprenticeship, ...

... being used frequently. They're often used interchangeably. This article will use program administrators, ' or PAs. A PA is a specialist in underwriting a particular industry or form of coverage on behalf of an insurance company or companies. Rarely do PAs administer claims, since their primary purpose is to administer, underwrite, rate, and market their product. Some PAs sell directly to the customer, but most generate sales through the insurance agency system. A true specialty insurance program has unique characteristics that distinguish it from a standard insurance submission-say, ... class of business The rates or forms necessary to rate or insure the exposures properly Individual reinsurance treaties in place to give the primary carrier the flexibility and capacity necessary to insure the underwritten class Keep in mind that standard reinsurance treaties, like standard ISO forms, exclude certain Liability and Property exposures, which in turn restrict the underwriter's ability to compete for many classes of business. For the most part, a program offers multiple-line coverages to their prospective clients. Exceptions include Professional Liability, Pollution Liability, Errors & Omissions, Directors & Officers ... specialty applications) to underwrite and compete for the business properly. PAs will attend conventions and generally ask their agents to man the booths with them. Sharing association endorsements with the producer is another way to share in a marketing effort. And, unlike the wholesale or Excess & Surplus Lines facilities, PAs pay more commission to the producer. Before devoting time and energy to a program, the producer should ask the PA what his or her renewal retention has been for the past three years. A stable and profitable program will have ...

...y underwrite, quote, and bind the primary General Liability for a specific account in one of hi...in the long run for you, your clients, and your agency.