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...nsured corporations, self-insured public entities or pools, captive insurers, ...subscription will continue; do nothing and it will end. It's that simple. We h...

...ibility. It is also emerging as a public relations issue for agents. Compariso...olvencies will continue to be of major and immediate concern for agents during...

...can cost your agency the account. Public relations can slide when a client who suffers...t (707) 935-6565 . e-mail catherine@oakandassociates.com, or visit www.oakandassociates.com.

...s that deal in 'services' for the public. This method does just that. Since agencies are not ordinarily publicly traded, there is no price available...ced a greater pretax multiple of ANEBT-and greater value-than the other approa...

...s that deal in 'services' for the public. This method does just that. Since agencies are not ordinarily publicly traded, there is no price available...ncy's underwriting authority Errors & omissions history and coverage History of prior a...

... sudden-demand risk. Risks that this technique addresses include Product Liability (including products recall), Pollution Liability, Errors and Omissions Liability, Workers' Compensation, and high-deductible Property. Various types of entities that could use Financial insurance include medium-size and large self-insured corporations, self-insured public entities or pools, captive insurers, and risk-retention groups. Insurance companies have used variation of this technique for many years (Financial reinsurance) . In the purest form, Financial insurance premiums are calculated by adding the current value of loss payouts to expenses and insurer ... . Prospective Financial insurance can be useful when conventional insurance is difficult to obtain but is needed for business reasons (such as when contracts require evidence of insurance) . Difficult-to-insure risks for which this technique could be useful include pollution liability, products-recall liability, and employment- related liability. Prospective Financial insurance is also useful when the insured believes its annual risk is limited and desires to assume some of the risk, but wishes to protect against extreme fluctuations. Earthquake is an example of a improbable annual loss risk with the potential for extreme ... , however, that deductibility of Financial insurance premiums is considered a gray area by many tax experts. Some tax specialists claim that a pure timing risk transfer might not be considered insurance by the IRS. Any organization considering the use of Financial insurance for tax reasons should consult appropriate tax counsel. Possible tax-free accumulation of investment and underwriting income. If located in the appropriate domicile, such as Bermuda, investment and underwriting income credited to an account whose size reflects its loss experience may accumulate tax-free until realized and repatriated by the insured. ...

... the exercise of reasonable diligence should know, of facts or circumstances' affecting the financial stability of the company and the quality of the insurance protection being provided. Monitoring the financial condition of carriers has clearly become an on-going legal responsibility. It is also emerging as a public relations issue for agents. Comparisons between the insurance industry and the S&L situation are frequent fodder for the press. And the recent failures of several Life insurance carriers have served to fuel the flames. Insureds are demanding that agents have adequate information on insurance ... . It is part of the package of professional services that they are expecting the independent agent to provide. Most of the E&O claims charging agents with lack of due diligence in selecting insurers that became insolvent have so far been settled out of court for small sums. But the number of cases is going up, and there is every reason to believe that awards will increase also. Some E&O policies provide coverage for these losses, others do not. Even if there is E&O coverage, agents stand ... , and they expect to continue downgrades in 1991. Insolvencies will continue to be of major and immediate concern for agents during the next several years. The late Carol Hammes, principal of The Middleton Group, was one of the Independent Agency Systems most widely respected management consultants. She will be sorely missed. 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 ...

... impact on the attorneys' fees to defend yourself. If the employee is still working in the agency, has on-going contact with current employees, is perceived as a hero' by others, or has visibility in the community, you also face productivity, morale and public relations problems. Additionally, there is the emotional toll that the whole episode will take on the agency principals, managers, and their respective families. And to top it all off, there is no assurance that the judge or jury will view your innocence as ... other threats to the small business owner that can turn the life of even the most cautious agency principal into a real nightmare. This month we will deal with two types of legal action that can seriously drain away the valuable agency resources of time and money. Employee Relations The possibility of ending up in a legal hassle with an employee or former employee has become a real concern for even smaller agents located in parts of the country where lawsuits were previously unheard of. A recent study by the ABA revealed that in the 20 years ... often done to the productivity and sales activity of the agency operation when a major owner is involved in a long legal battle. The late Carol Hammes, principal of the Middleton Group, was one of the Independent Agency System’s most widely respected management consultants. She will be sorely missed. Reproduced, with permission, from The Middleton Letter. 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 ...

... the exercise of reasonable diligence should know, of facts or circumstances' affecting the financial stability of the company and the quality of the insurance protection being provided. Monitoring the financial condition of carriers has clearly become an on-going legal responsibility. It is also emerging as a public relations issue for agents. Comparisons between the insurance industry and the S&L situation are frequent fodder for the press. And the recent failures of several Life insurance carriers have served to fuel the flames. Insureds are demanding that agents have adequate information on insurance ... . It is part of the package of professional services that they are expecting the independent agent to provide. Most of the E&O claims charging agents with lack of due diligence in selecting insurers that became insolvent have so far been settled out of court for small sums. But the number of cases is going up, and there is every reason to believe that awards will increase also. Some E&O policies provide coverage for these losses, others do not. Even if there is E&O coverage, agents stand ... , and they expect to continue downgrades in 1991. Insolvencies will continue to be of major and immediate concern for agents during the next several years. The late Carol Hammes, principal of The Middleton Group, was one of the Independent Agency Systems most widely respected management consultants. She will be sorely missed. 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 ...

...y from time to time hereafter. d. Public actions by the Producer which, in the...13. Notices. All notices, requests, demands and other communication required hereunder shall be in writing and shall be deemed to have been duly given and effective (a) on the date delivered if delivered in hand to the Producer or to the President...