Term Insurance with No E&O Required

jaguar99 · 02-03-2008, 05:06 PM

I am a newbie to the insurance industry. Other than Illinois Mutual, who are the other term insurers (competitively priced) who allow agents to represent them without carrying errors and omissions and how do I sign up? I haven't quite mastered navigating this forum yet, so any assistance would be appreciated.

TXINSURANCE · 02-03-2008, 07:37 PM

Are you comfortable selling without E&O. I have seen some E&O as low as $40 to $50 per month after down payment, give or take.

Every life company I have ever appointed with wanted E&O. Health companies have looked the other direction - but not life. A $1mill claim can be a little nasty.

Is there a reason you don't have E&O or is just $$$ right now?

jaguar99 · 02-03-2008, 11:01 PM

I have just been captive for a while with companies that didn't require it. I just applied for an e&o policy and was curious that's all. Would be nice t save a few bucks in the early stages, but I guess it's penny-wise dollar-foolish.

TXINSURANCE · 02-04-2008, 12:05 AM

Jaguar just put in on a credit card, borrow it - and buy the E&O, not for the risk issues - but you don't want to limit your carrier selection and send the wrong message to the carriers also.

Did you try NAPA? National Association of Professional Agents (NAPA)

Alsky · 02-04-2008, 08:07 AM

Originally Posted by jaguar99

I have just been captive for a while with companies that didn't require it. I just applied for an e&o policy and was curious that's all. Would be nice t save a few bucks in the early stages, but I guess it's penny-wise dollar-foolish.

Yes, absolutely great advice from TXINSURANCE, but just for the record OMFN (Old Mutual Financial Network) formerly F&G (Fidelity & Guaranty) is the only company I know of that doesn't require E&O... however, they may have changed their policy... it's been about 4 years since my appointment with them.

Al D.
Professional Telemarketing Solutions

jaguar99 · 02-04-2008, 10:45 AM

Originally Posted by Alsky

Yes, absolutely great advice from TXINSURANCE, but just for the record OMFN (Old Mutual Financial Network) formerly F&G (Fidelity & Guaranty) is the only company I know of that doesn't require E&O... however, they may have changed their policy... it's been about 4 years since my appointment with them.

Al D.
Professional Telemarketing Solutions

Actually, OMFN has changed their policy unless you contract through NAA.

I appreciate the feedback so far. There's a lot of good info on this board if you can find it.

Slushpuppie, thanks for the info. I don't have enough posts to reply yet.

ims01 · 02-04-2008, 11:31 AM

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Fidelity Life does not require E&O from agents, only GA's need it. Get more info at: Home. They have a great term series called Rapid Decision Term.
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jaguar99 · 02-05-2008, 02:08 PM

Thanks, ims01. Great link. Calling your office now.

GreenSky · 02-05-2008, 02:39 PM

I always wonder why someone in this industry would not have E&O. Given that we have zero expenses other than phone, gas and (maybe) leads, how can we complain about the cost of E&O?

There is virtually no other business with a potential of six figures with an annual cost of under $2,000. Skip the lattes and use the savings to buy E&O.

Rick

Ahnuld · 02-05-2008, 03:00 PM

You have got to have E&O. Period.

When it hits the fan, all parties get dragged into the fray. Without representation, you are toast. It does not matter if you are not responsible for causing the "problem." Forget the talk that they only go after the "deep pockets" so you are safe. You are not.

Even if you are found completely "innocent" in something that gets litigated, it will still cost you money. It may not be fair, but what is? Even with E&O you still have deductibles to pay, so everybody pays.