E&O Weekly Prevention
Strategies for the Professional Agent
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June 7, 2012


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Letter from the Editor

Letter from the Editor


This week we have three very interesting articles, including one ALERT from the Insurance Department of NY.  For those employers in search of their next hire, they should read Dr. Michael Mercer's article on "How To Reject  A Job Applicant." Also this week James Warters gives us some additional insights on reinsurance, with his article on "Proportional Reinsurance," and Thomas Paschos, Esq. gives us a comprehensive overview on "Corporate Counsel: the Ethical Duty of Confidentiality and the Attorney-Client Privilege."  And, as noted above, we have an ALERT from Wilson Elser, etal from the NY Department of Insurance regarding regulation governing unclaimed life insurance benefits and policy identification.


We also would like to extend an invitation for you to join AOA's LinkedIn group at AGENTS OF AMERICA. Also our affiliated Insurance Open Network, a LinkedIn open networking group for all insurance professionals.


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Also available is our most recent edition of "AOA Tips, Views, News & More," including our new feature "Insurance Resources."  Remember to tell your friends and business associates that membership in AgentsofAmerica.ORG is FREE! 


"Bringing the Best Together"


Brit Weimer



AOA News, Views, Tips & More


E&O Loss Prevention Tip


Description of Claim:

Issues that can arise when using a wholesaler
Allegations against the Agent: The Insured Agent was approached by a new client to procure business policies for his equipment. The client indicated he was referred to him by a current client. The underlying insured stated that he was in the wireless communication business and agent assumed that he was in the consulting area of wireless communication since that was the type of work that the agent's other client performed. The policy was obtained and coverage provided. However, underwriting investigated the risk and determined that the underlying insured actually did installation, which was ineligible business for the agent to write. The insurance carrier cancelled the policy; however, the underlying insured suffered a theft loss prior to the policy being terminated. The carrier paid for the loss and sought reimbursement from the agent for binding them to an ineligible risk
The underlying loss: Theft loss.
Damages: $35,000.

Brought to you by: CalSurance Associates
A Division of Brown & Brown Program Insurance Services, Inc Email: info@calsurance.com




By Mark Hunter the "Sales Hunter" 


If you want to be viewed as a value-added partner to your clients and prospects - not just a salesperson - you need to go above and beyond to share information they may find of interest.


Use news websites as a source of links you can email to clients and prospects.

One of the best ways I've found that works is by scanning news websites for articles you can then forward.

I've used this approach for years with very positive results.

Don't limit yourself to only emailing articles that favorably mention the client's company. Yes, these are nice but also be on the lookout for articles that show you are a strategic thinker.

Let me share with you an example.

Recently I was scanning one of the business websites I scan each day and I found an article detailing how the trucking / transportation industry is expected to show major growth in the coming year. The article explained where the growth was going to occur and some of the impacts it would have on business in general. I was able to forward the link to the article to several clients and even a prospect.

The beauty of this technique is it doesn't require an extensive explanation. Each time I forward a link, I keep the note very short and typically only write something about how I thought this article might be of interest.

Short and sweet.

I can't begin to tell you the number of phone calls and follow-up emails I've received from people after I've done this.

If you're serious about this, allocate 10 minutes a day to find at least one article you can forward to one or two clients or prospects.

Here is a list of the business new sites I scan each day:


These just happen to be the ones that I've found are of interest to me and typically of interest to my clients.

You may select other sites and that's fine. The key is to find news your customers may or may not have seen, allowing them to view you as a strategic partner interested in their success.

Mark Hunter, "The Sales Hunter," is a sales expert who speaks to thousands each year on how to increase their sales profitability. For more information, visit www.TheSalesHunter.com. You can also follow him on Twitter, on LinkedIn, and on his Facebook Fan Page, or call 402.45.2110. -
Copyright 2012, Mark Hunter "The Sales Hunter." Sales Motivation Blog.




This Week's Poll Question


Question: On the subject of E&O loss prevention, how would you gauge your agency's culture and commitment compared to last year at this time?


Significantly better / more focused 

Somewhat better
About the same
Somewhat worse
Significantly worse / have regressed




Social Media Tip 

By Cynthia Cavoto of Firebrand Social Media
What's the Fascination with Pinterest?
Pinterest is what everyone is talking about within the social media arena these days. But how can images help your business? Here's some tips to help you understand the power of pinning. 


1. Spend the time
Like any social network, and maybe even more with this demographic, Pinterest.com requires an investment in time. 

2. Keep it simple
The main appeal of Pinterest is that the site is exceptionally easy to use. Everyone has a "board" where they pin images that are all the same size. 

3. Make sure your business is a match
This tip might seem obvious, but Pinterest caters to those looking for recipes, room décor, and do-it-yourself crafts. If your company sells power sanders, you might not be a good fit. 

4. Promote more than products
The temptation for any business is to post pins only for products you sell.  One key is to post interesting news tidbits, tips, and products from other companies. Don't be self-serving as other pinners pick up on that rather quickly. 

5. Follow the big hitters
One of the best ways to raise awareness about your company is to start following the big names on Pinterest. This is the proven method on Twitter: When you follow popular figures, and they follow you back, other Twitter users get the message and follow the leader.   


This month's EBook is entitled, "Targeting Your SEO Landing Page For Demographics"   


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. Contact Cynthia at cynthia@agentsofamerica.org. or cynthia@firebrandsocialmedia.com

Table of Contents


How  To  Reject  A  Job  Appliant 

By Michael  Mercer, Ph.D.  


Proportional Reinsurance

By James A. Warters of Preferred Reinsurance Intermediaries 

Corporate Counsel - The Ethical Duty of Confidentiality and the Attorney-Client Privilege

By Thomas Paschos Esq. of Thomas Paschos & Assoc., P.C.,


New York Department of Financial Services Issues Emergency Regulation Governing Unclaimed Life Insurance Benefits and Policy Identification 

By Sandy Smith, Esq., Stacey Rowland, Esq., & Fred Pomerantz, Esq. of Wilson Elser Moskowitz Edelman & Dicker LLP 
article1How to Reject a Job Applicant
By Michael Mercer, Ph.D.

A Nightmare That Really Happened

Many years ago when I worked as a manager at a major corporation, I received a call from a headhunter about a magnificant job offering.



Click here for Free Property and Casualty Ideas



article2Proportional Reinsurance 

By James A. Warters of Preferred Reinsurance Intermediaries


As many of you know, pro rata is Latin for "give me your profits in return for a commission that might cover half of your expenses." At least it sometimes feels that way during reinsurance negotiations. Actually, it refers to dividing premiums, expenses and losses between participants in a predetermined percentage or proportion. While just what actually constitutes premium, expense and loss is often subject to spirited debate, for our purposes we will use basic definitions. In proportional reinsurance, a company cedes (reinsures) a specified portion of a risk less a commission and recovers the same portion of loss from the reinsurer. Two basic forms of proportional reinsurance are called "quota share" and "surplus share."











article3Corporate Counsel - The Ethical Duty of Confidentiality and the Attorney-Client Privilege 
By Thomas Paschos Esq. of Thomas Paschos & Associates, P.C., 
The ethical duty of confidentiality and attorney- client privilege are the foundations upon which lawyers provide service to clients. The principle of client-lawyer confidentiality is given effect by the rule of confidentiality established in professional ethics and the attorney-client privilege. The confidentiality rule applies not only to matters communicated in confidence by the client but also to all information relating to the representation, whatever its source. The attorney-client privilege applies in judicial and other proceedings in which a lawyer may be called as a witness or otherwise required to produce evidence concerning a client.

articlefourNew York Department of Financial Services Issues Emergency Regulation Governing Unclaimed Life Insurance Benefits and Policy Identification
By Sandy Smith, Esq., Stacey Rowland, Esq., & Fred Pomerantz, Esq. of Wilson Elser Moskowitz Edelman & Dicker LLP 

On May 14, 2012, the New York Department of Financial Services (Department) issued an emergency regulation governing unclaimed life insurance benefits and policy identification.

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