My E&O situation. Is this a fair deal?

[NHB_MMA]

As a registered rep. I am now required to get E&O coverage. The company says it has shopped around and got a deal on some coverage. I know the prices are higher than some of what I've seen advertised here. I can sign the forms and get:

$1M per occurence/ $3M aggregate for $1060 per year

or

$2M per occurence/ $6M aggregate for $1360 per year

I know I have seen some people here quote lower prices when discussing the issue. I am not required to get the stated coverage, however if I shop around it must meet the following requirements:

$1M per occurence/ $3M aggregate.
Coverage must cover all companies affiliated with.
Coverage must be underwritten by a company rate a minimum of "A" by A.M. Best.




Is there something that is a significantly better deal, or should I just make out the check? :(

Would you go with the $1M/$3M or the $2M/$6M?

 

[cadylou]

Seems high

I bought $1M per occurance & $1M annual for $388. The $1M per & $2M annual through this same entity was $492. I got it through Blue cross & it covers all of the insurance products I carry.

Could it be the $3M aggregate that is driving it so high?

 

[somarco]

Registered reps pay a higher rate than health agents. If you dabble in retirement funding you will pay even more.

If you have insurance agents under you and report it to your E&O carrier (and you should) you will pay more than just a solitary agent.

My E&O runs $450 a year.

Solo practice. No ERISA plans, no sub-agents, no investment products.

 

[cadylou]

ohhhhh

ok, I didn't know that - I'm relatively new to insurance. I'm solo too, & don't do anything with retirement planning. Straight insurance - health, life, LTC, etc.

 

[NHB_MMA]

Registered reps pay a higher rate than health agents. If you dabble in retirement funding you will pay even more.

If you have insurance agents under you and report it to your E&O carrier (and you should) you will pay more than just a solitary agent.

My E&O runs $450 a year.

Solo practice. No ERISA plans, no sub-agents, no investment products.

I suspected that to be the case. I'm sure litigation is more common in the variable market arena, as people are more susceptible to loss and human nature is to blame someone, whether warranted or not.

 

[K-Dub]

Cadylou,

Did you go through NAPA?

 

[somarco]

I would anticipate some E&O carriers to start sur-charging for agents who sell LTC insurance, and possibly annuities (especially EI annuities).

 

[K-Dub]

Nevermind on that question cadylou, I just renewed my e & o for $460 for the year which is fair.

Thanks!

 

[MIBizInsurance]

So who did you folks go through ?

 

[cadylou]

My E&O

K-Dub - this year I went through Blue Cross E&O. Last year I did it through NAPA & had the cheapest stuff through Aflac associate program. i barely sell any of that now, & have switched to a broker contract with them--much more expensive than the associate one.

sounds like you did fine.