E&O Update: No More 412/419 Plans Allowed

[Justin Bilyj]

I just got my E&O notice and there's a new clause stating they wont be liable for losses when it comes to 412i /419 plans.

Wanna peddle life insurance retirement plans, gotta find an E&O company willing to cover it I guess..

 

[scagnt83]

I just got my E&O notice and there's a new clause stating they will be liable for losses when it comes to 412i /419 plans.

Wanna peddle life insurance retirement plans, gotta find an E&O company willing to cover it I guess..

Are you sure you typed that correctly? Because the way I read what you wrote, they cover it...

 

[Justin Bilyj]

Thanks for catching that, I fixed it

 

[DHK]

Who is your E&O carrier/program?

 

[Justin Bilyj]

E&O for Less!!! The Insurance Forum's recommendation..

 

[DHK]

I'm really not surprised. Have you sold any? I never have.

I'm not a raving fan of Roccy DeFrancesco, but he's been against these plans for a number of years. This article is from 2011.

ProducersWeb - Life - U.S. attorney goes after 419 welfare benefit plan promoter

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Just looking at my NAPA E&O:

Life & Health Agent Errors and Omissions Insurance

Multiple employer trust or welfare arrangement are not covered and insolvency claims are excluded except for carriers with an A- rating at time of sale.

So, if you're looking to sell these plans, don't look to NAPA for your E&O either.

 

[pfg1]

E&O for Less!!! The Insurance Forum's recommendation..

My buddy just got the same notice from them. I have not seen it and what it says specifically. He said he's looking for a new carrier...who did you go with?

I wonder what specifically they mean? Are they saying that if you sell LI and people plan to use some of the cash value for income, they won't cover you?

I know there are certain plans as you mentioned that are designed for that. What about if its not one of those plans? Such as a regular WL or IUL that folks plan to use to supplement retirement?

Trying to find out some info for him. Thanks