E&O Prevention
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August 31, 2011


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AgentsofAmerica.ORG is now offering a service to our subscribers and readers to market their products, services or upcoming events using our Newsletter MARKET SOLUTIONS. This unique opportunity will allow you to reach thousands of Insurance Agents, Brokers and Insurance Professionals across the country in timely, efficient and cost effective manner. In addition to sending out your message, we can also help you use Internet Marketing as medium to convey your announcement, as well as on how it can be utilized to effectively grow your business. If you have any question, please contact info@agentsofamerica.org.


We'd like to announce yet another new resource for our readers. Each month, we will feature a brand new Social Media EBook that contains valuable information on how you can harness the power of social media. Each featured EBook will contain a wealth of information that will include such topics as Facebook, LinkedIn, Twitter, Email and Blogging to name a few. This month's EBook is entitled, Twitter and Facebook's Influence on SEO. We know you'll find this information valuable for your business. Please feel free to email us to share your comments. In addition, we are happy to consider suggestions or topics you'd like us to put into an EBook.  


This month's poll question


How often do you evaluate the services and benefits of your E&O broker?

  • Never, I just keep using the one I have had for years.
  • Every year.  I get multiple quotes from multiple brokers.
  • Every 3-5 years.  I will interview new brokers to see what they have to offer.
  • Only when I have a problem with my broker.


Reminder: On December 15-16, 2011, the DRI Professional Liability Committee, with participation from Agents of America, will be presenting a stand-alone Professional Liability Seminar in New York, NY.  This DRI seminar will be the first of its kind, and our goal is to present a variety of topics relevant to lawyers and others in the industry.  We hope to attract 250-500 attendees, whom we expect will largely consist of defense lawyers and claim professionals.  We have set the bar very high for ourselves, and hope to establish our committee as a leader in providing education in the field of professional liability.  The program will feature industry experts from Allied World Assurance Company, OneBeacon Professional Insurance, Hanover Insurance, Navigators Pro, Endurance U.S. Specialty Services, CNA Global Specialty, Hartford Financial Products, ThinkRisk, and the Founder of both the Professional Liability Underwriting Society (PLUS) and Agents of America (AOA). For complete details see DRI EVENT.


Again, we want to thank everyone for their support.  Remember to tell your friends and business associates that AgentsofAmerica.ORG is now offering FREE MEMBERSHIP.


"Bringing The Best Together" 

Brit Weimer, Esq.


Table of Contents

Consolidate - Consolidate - Consolidate

By Charles T. Wilson, CMC, CRM, RPLU


Should Social Media Replace Cold-Calling?

By Mark Hunter, "The Sales Hunter" 


In Nevada, an Indemnity Provision Will Only be Enforced to Find One Party Owes for the Other's Sole

By Wendy L. Wilcox, Esq.


The Art of Asking Questions

By Michael Beck 


Florida Courts Rejecting Prejudice as a Matter of Law in Certain Late Notice Cases: Insurance Coverage Alert 

By Pedro E. Hernandez, Esq.


Insurer May Seek Reimbursement for Defense and Indemnity of Professional Negligence Claim

By Mohammed S. Mandegary, Esq.


Supreme Court Limits Rule 10b-5 Liability to Actual Maker's of Allegedly Misleading Statements - Perhaps Not the Fraud Shield Predicted by Some 

By Louis Castoria, Esq., William J. Kelly, Esq., H. Steven Vogel, Esq., Sheena Jain., Esq.


Sustaining Energy

By Ed Rosa



newNew York Court Decides That Banks and Mortgage Companies May Be Liable to Ponzi Scheme Victims Under Theory of Ordinary Negligence

By William G. Winget, Esq.


A New York Supreme Court judge in Nassau County recently refused to dismiss negligence claims against financial institutions that provided mortgage loans and related services in connection with a Ponzi scheme perpetrated by a Long Island financial advisor. While the decision apparently is being appealed by at least one of the defendants, the Court's logic stands in contrast to published decisions from other courts rejecting negligence claims by Ponzi scheme victims against financial institutions, albeit under different legal standards. At least for the time being, the Nassau County decision raises the specter that financial institutions in New York may be compelled to litigate negligence claims by Ponzi scheme victims, and it further underscores potentially divergent standards of liability under federal and state law. 


Read More...   

eoE&O Loss Prevention Tip

By Brown & Brown of California, Inc.


Description of Claim:

Don't let a Catastrophe Exposure Become Your Own Catastrophe


Allegations against the Agent:

The agent was asked to obtain full coverage for his client's home. The agent wrote a Homeowner's policy and obtained a separate policy to cover the insured's home for wind. The home had a pool and pool enclosure that was included on the Homeowner's policy. However, the agent was unaware that the wind policy required a separate policy for the pool enclosure. 





consolidateConsolidate - Consolidate - Consolidate

By Charles T. Wilson, CMC, CRM, RPLU


The mantra for Real Estate is Location - Location - Location. For your insurance program, it should be the title above. It's easy and creates lots of benefits.


Almost all midsize and smaller businesses have purchased their insurance policies over time, as they discover or need new coverage. Today's snapshot of their program looks very haphazard and disorganized - different stand-alone policies, different renewal dates, and sometimes different brokers and/or captive agents. The usual explanation is their purchases have been transactional rather than strategic. This is both the problem and the opportunity.





shouldShould Social Media Replace Cold Calling?

By Michael J. Beck 


People continue to say how cold-calling is dead and how in today's environment, it no longer can be cost justified. The answer in my book is both "yes" and "no." Let me deal with the "no" first 



NevadaIn Nevada, An Indemnity Provision Will Only be Enforced to Find One Party Owes for the Other's Sole Negligence if it is Explicitly and Unequivocally Expressed in the Contract

By Wendy L. Wilcox, Esq.


On June 2, 2011, the Nevada Supreme Court in Reyburn Lawn & Landscape Designers, Inc. v. Plaster Development Co., Inc, held that parties are free to contractually agree to indemnify each other for one's own negligence but the contract will only be enforced if the parties clearly express such an intent in the contract.





theartThe Art of Asking 

By Michael Beck 


Mastering the Art of Asking Questions is essential if you want to succeed. It's not simply a matter of getting in the habit of utilizing questions in your interactions with people. It's really about learning how to ask the right questions at the right time.


Read More...  



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FloridaFlorida Courts Rejecting Prejudice as a Matter of Law in Certain Late Notice Cases: Insurance Coverage Alert

By Pedro Hernandez


Florida state courts (see Aubuchon Homes, Inc. v. Great American Ins. Co., Case No. 04-CA-004430, 20th Judicial Circuit, Lee County, Florida) have begun following Keenan Hopkins Schmidt & Stowell Contractors, Inc. v. Continental Cas. Co., 653 F. Supp. 2d 1255 (M.D. Fla.), a 2009 federal case standing for the proposition that when an insurer denies a claim under late notice it cannot prove prejudice as a matter of law if it is able to investigate a claim sufficiently to permit it to deny the claim on other grounds. The Keenan Hopkins court held that the ability to investigate the claim effectively rebuts any presumption of prejudice arising from the late notice. 




 insurerInsurer May Seek Reimbursement for Defense and Indemnity of Professional Negligence Claim 

By Mohammed S. Mandegary, Esq.


Under both California and Arizona law, an insurer is entitled to seek reimbursement from its insured for defense and settlement payments if it has expressly reserved Its rights, even if that reservation was unilateral. Phillips & Associates, P.C., et al. v. Navigators Ins. Co., 2011 U.S. Dist. LEXIS 15760 (D. Ariz. 2011).




supremeSupreme Court Limits Rule 10b-5 Liability to Actual "Makers" of Allegedly Misleading Statements - Perhaps Not the Fraud Shield Predicted by Some

By Louis Castoria, Esq., William J. Kelly, Esq., H. Steven Vogel, Esq., Sheena Jain., Esq.


Many view the United States Supreme Court's recent Janus Capital Group decision as drastically limiting the pool of potential defendants in federal securities fraud claims, but some of the champagne bottles should stay corked for now.


Read More....



sustainingSustaining Energy During your Job Search 

By Ed Rosa


Keep Your Daily Schedule: If you've gotten out of bed at 5:00am everyday for the last ten years and started with a cup of coffee and the paper, don't stop now! Maintain that routine. Get out of bed early. Start your day as if you have a full time job (looking for work can be a full time job for some people). Keep the same pace you had while on the job. Besides, when you get back into the work force, you won't want to have to adjust your patterns again.  




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