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... investments (junk bonds, too much real estate) Agent grapevine is giving some ...e of major and immediate concern for agents during the next several years. ...

...with only marginal vigilance, this real-life insolvency could have been 'predi...uating a carrier’s financial stability and minimizing the risk of an E&O c...

... as it might, agencies should almost never write a temporary contract on top of a policy that already exists. Just because the paper policy hasn't arrived, doesn't necessarily mean that coverage doesn't exist. Evidences of Insurance In Personal Lines, most insureds, banks, and real estate agents need evidences of insurance, not binders. The policy is in effect, but has not arrived. So why not provide evidence of insurance rather than a binder? Certificates of Insurance First, let's call this area what it is - a mess. ... have such a mishmash of laws or lack of laws and regulations among the states that what works in one state isn't necessarily relevant in another jurisdiction. This has become glaringly obvious with the new ACORD certificate form. Second, when an agency is trying to go the extra mile for its insureds by providing certificates that fit their needs, they should not overstep their authority. Agents do not have authority to change language without explicit written authority from a carrier. If an agency changes the language, the agency might be violating copyright law ... changing the insurance company's filing with the insurance department. Everyone knows what happens when there's a claim that involves an agency changing its insurance company's filing – the agency loses the E&O claim! Third, a certificate is proof of certain coverage at a certain time. It is not an insurance contract or a binder, and it should not be used to increase coverage. If any agents reading this have not had everyone in their agency take the Virtual University (VU) Certificate of Insurance class from the Independent Insurance ...

...lines” is a misnomer, because it’s really a list of the agency’s contractual b...omply with all applicable laws, rules, and regulations.

... Dramatic changes in written premiums from one year to the next Surplus growing faster than 10% a year (could be unstable growth) Transfer of loss reserve portfolio (manipulation of the financial statement) Consistently under-reserving on your claims Questionable investments (junk bonds, too much real estate) Agent grapevine is giving some negative signals SECTION III-ITEMS THAT COULD BE INDICATIONS OF SOME FINANCIAL DIFFICULTIES: Assign one (1 ) point for every YES answer on the portion of the checklist. Consistently poor business decisions being made Information coming from branch inconsistent with ... from home office Employee morale down and turnover among underwriters up Letter from company denying rumors (add extra point if you hadn't heard rumors) Change in agency contracts, especially termination or profit-sharing procedures Extensive changes in agency force (many appointments or terminations) Makes erratic changes in underwriting authority, either more or less Slowdown in paying claims Slowdown in processing return premium endorsements and audits Overall deterioration in service Much lower rates or higher commissions than similar companies Enters new lines of business or markets that other companies are avoiding Sudden withdrawal from a territory ... Member Content - Content Package Categories Popular Recent All Back Agent's Responsibility For Company Insolvency 12/16/2013 12:00:00 AM by CompleteMarkets Editor , Carol Hammes This content has not been rated yet. Up until 20 years ago courts did not treat insurance agents as professionals and as a result agents were usually not held responsible for errors and omissions in situations involving the insolvency of carriers. With professional' status came the requirement that an agent must live up to professional standards of conduct. Court cases after 1957 have made ...

... Dramatic changes in written premiums from one year to the next Surplus growing faster than 10% a year (could be unstable growth) Transfer of loss reserve portfolio (manipulation of the financial statement) Consistently under-reserving on your claims Questionable investments (junk bonds, too much real estate) Agent grapevine is giving some negative signals SECTION III-ITEMS THAT COULD BE INDICATIONS OF SOME FINANCIAL DIFFICULTIES: Assign one (1 ) point for every YES answer on the portion of the checklist. Consistently poor business decisions being made Information coming from branch inconsistent with ... from home office Employee morale down and turnover among underwriters up Letter from company denying rumors (add extra point if you hadn't heard rumors) Change in agency contracts, especially termination or profit-sharing procedures Extensive changes in agency force (many appointments or terminations) Makes erratic changes in underwriting authority, either more or less Slowdown in paying claims Slowdown in processing return premium endorsements and audits Overall deterioration in service Much lower rates or higher commissions than similar companies Enters new lines of business or markets that other companies are avoiding Sudden withdrawal from a territory ... Member Content - Content Package Categories Popular Recent All Back Agent's Responsibility For Company Insolvency 12/16/2013 12:00:00 AM by CompleteMarkets Editor , Carol Hammes This content has not been rated yet. Up until 20 years ago courts did not treat insurance agents as professionals and as a result agents were usually not held responsible for errors and omissions in situations involving the insolvency of carriers. With professional' status came the requirement that an agent must live up to professional standards of conduct. Court cases after 1957 have made ...

...er amount of coverage to obtain on real property, absent a special relationshi...ell as contract claims. Gilmer v. Intestate/Johnson Lane Corp. (1991) ___ U.S....