E&O Weekly Prevention
Strategies for the Professional Agent
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September 6, 2012


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This week's edition of AOA E&O Prevention:  


Table of Contents     


Understanding the Value of a Defined Contribution (DC) Strategy for the Overall Employee Benefits Design             

By Philip W. Eide


By Nicolas C. Mesco Esq. 


By Dario J. Badalamenti, Esq. 


California Supreme Court Upholds the "Uber-Policy" for Long-Tail Insurance Claims

By Michael L. Zigelman, Esq. &  Eric B. Stern, Esq.


AgentsofAmerica.ORG has partnered with WebCE, a leading nationwide provider of Continuing Education for insurance professionals, to provide you with state-approved self-study CE courses to satisfy your CE requirements online! Check out your CE State Requirements.
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! Also if you have any thoughts, comments or suggestions, please email me at info@agentsofamerica.org.  


"Bringing the Best Together"

Brit Weimer 



AOA News, Views, Tips and More


Financial Tip of the Month

By Mike Brady of the Brady Financial Group, LLC


As an agency owner you should take the time to challenge your expectations when discussing a possible acquisition or sale. Having a professional involved in and agency transaction provides a resource to help validate the goals the owner hopes to achieve in the transaction. Often times an agency owner has an expectation that might not be attainable (time involved, dollars, their role going forward, etc.) and nobody is there to point that out. The time to understand expectations and in some cases reset expectations is up front, not when you are halfway through the process. This seems like common sense but too frequently we come across an owner who was involved in a prior transaction that did not meet their goals. In many instances the main reason for the transaction not working out was the goals were not realistic and the owner opted to handle the transaction without any independent help. The cost of finding this out too late will far outweigh the investment an owner makes in having a professional resource involved in their transaction.


Contact Mike at mike@bradygrp.com or Visit Brady Financial Group(484) 653-6280


10 Tips Design Strategy for Implementing a Successful Defined Contribution (DC) Employee Benefit Plan 

By Philip W. Eide - President, BenefitPlace.biz / BPTradeShow.com





(1) Work with the CFO to determine the Benefit Dollar/Credit Allocations to Employees by classification without discrimination.

(2) Work with the HR Department to Build a Menu of Benefit Choices to meet the Needsand Price Points of the Employees;

(3) Work with a TPA to offer Reimbursement Accounts: Medical/Health; Dependent Care; and Transportation/Parking as appropriate.

(4) Work with the Employer's Advisors for Sound tax and regulatory advice; 

(5) Work with Management and Department Leaders for their support - "Buy-In";

(6) Work with the Employer for Access to Employee's Family Members for theirInvolvement and Participation

(7) Work with Enrollment Companies or Services for an integrated Education, Communication, Enrollment and Data Management Process. 

(8) Work with the Employees to appreciate the "Choices" offered on an "Unbiased" Platform whether one-on-one, in group meetings, web-based, call center, etc. 

(9) Work with the Payroll Department or Service and the Employees to correctly enterEmployee Deductions and to monitor the 1st pay checks after the deductions.  

(10) Work with all New Hires and Employees with a Change of Status to Introduce and Enroll the available Plans, Programs and Services.   


Carefully Designed and Implemented a DC Plan Strategy can create a WIN/WIN/WIN Opportunity -- The Employer Wins / The Employees Win / The Broker Wins!


Presented By Philip W. Eide, President - BenefitPlace.biz and BPTradeShow.com  Email - max@benefitpalce.biz or Call - 216.577.5579



Strategic Insurance Tip

By Andrew Barile of Andrew Barile Consulting Corporations, Inc.


Andy Barile discusses on Wrin.tv RRGs Risk and their battle to do business in States, like California, where officials are ignoring the law to keep RRGs from doing business.




Contact Andrew at abarile@abarileconsult.com or (619) 507-0354



By Philip W. Eide


DC Plans are starting to receive substantial interest and traction among Agents, Brokers, Consultants, TPAs, and Employers. Here is an overview. The History of Our Involvement - While the strategy, and its potential value is not new, the interest by Decision-Makers (particularly the CFOs) and Agent/Brokers have increased dramatically. Over ten years ago we co-sponsored a "Think-Tank" in Philadelphia where the primary topic was "DC". Attendees were selected as leaders in diverse industry sectors including: Core Benefit Providers/Insurers, Voluntary/Worksite Providers/Insurers, Core Benefit Brokers/Specialists, Voluntary/Worksite Benefit Brokers, Enrollment Companies, TPAs, and Actuaries. While for the most part the attendees agreed upon the inherent value to all parties - including Employers and Employees - the concept experienced limited acceptance when introduced in the field. While the cost of Employee Benefits was experiencing double-digit increases, the market was not ready for Employees to become consumers with "Choice" and Employers were not prepared to withdraw from "Selecting" the Benefit Plans offered to their Employees. The differentiation between "Contributing" to the Employee's Benefits and "Selecting" the Benefits had not been differentiated.  












article2An Insurer's Duty to Defend Ends After Settling the Only Potentially Covered Claim

By Nicolas C. Mesco Esq. 


In a case of first impression, the Wisconsin Court of Appeals held that an insurer's duty to defend ended after it settled the only potentially covered claims in an underlying lawsuit. The court ruled that the insurer had properly withdrawn from the defense of the remaining claims against the insured. Society Insurance v. Bodart, 2012 Wisc. App. LEXIS 469 (Wis. Ct. App. June 7, 2012).






Firebrand Social Media   




A3When Asserting "Casual Employment" Defense to Workers' Compensation Claim Filed Under NJ Homeowner's Policy ere Request that Employee Not Discuss Employer's Ongoing Investigation Violates Labor Law, NLRB Holds      
By Dario J. Badalamenti, Esq. 

Marco Antonio Cruz v. Ivania Perez Alonzo, Docket No. A-0444-11T4, 2012 N.J. Super. Unpub. LEXIS 1025 (App. Div., decided May 9, 2012) 
The petitioner was injured while remodeling the respondent's residential basement. The petitioner was introduced to the respondent through her uncle and, beginning in 2009, did occasional minor work around the respondent's home. Before beginning work on the basement project, it was agreed that the respondent was to provide transportation for the petitioner, who neither owned a car nor had a driver's license, and that the petitioner was to work only on weekends as he had a full-time job at a supermarket. Although the respondent determined the time the petitioner spent on the basement project on any given day, the petitioner himself chose the days on which he would work. With the exception of the petitioner's own power saw, all other tools and materials for the basement project were provided by the respondent. On April 23, 2010, during his third weekend of work, the petitioner suffered serious injury to several fingers of his left hand while operating his power saw. 




A4California Supreme Court Upholds the "Uber-Policy" for Long-Tail Insurance Claims

By Michael L. Zigelman, Esq. & Eric B. Stern, Esq.


In a decision filed today (August 9, 2012), the California Supreme Court reaffirmed two of California's long standing rules with respect to long-tail insurance claims - the application of the "continuous injury" trigger and the "all sums" approach to allocation. Moreover, the Supreme Court ruled, in contravention of a prior Appellate holding, that an insured is entitled to stack insurance from multiple policy years to cover the full loss. The California Supreme Court handily calls this rule the "All-Sums-With-Stacking" rule. 


This newsletter is produced in conjunction with Agents of America, www.agentsofamerica.org. The contents of which may not be reproduced without the express written permission of Agents of America. Copyright 2012