E&O Weekly Prevention
Strategies for the Professional Agent
May 9, 2013

Agents of America

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Letter From  the Publisher
AOA Learning Center is pleased to announce the next stage in their commitment to the development of insurance education programs. Through their extensive library of high level educational material, the AOA Learning Center is expanding their platform and will be developing series of webinars / seminars, weekly E&O tips and customize Newsletters for both Insurance Companies and Professional Organizations. In addition, thru our partnership with Web CE, AOA plans to convert the content from each of their first three publications into continuing education programs beginning the fourth quarter of 2013


A review of the top stories on World Risk & Insurance News at WRIN.tv. Here is your opportunity to see the online video news stories you may have missed. Watch them now "Week in Review".


Also listen to Insurance Marketing Expert George Nordhaus "Monday Morning"  on 

"What's the most boring section on almost insurance agency websites?" including the "Top 10 Mistakes Producers made in 2011 



On Sale Now... "A Comprehensive Guide to Avoiding E&O Claim - Book One"!

 "A Comprehensive Guide to Avoiding E&O Claims" addresses issues that Insurance Agents & Brokers encounter every day. One of the most important assets an agent has is their reputation; it takes years to build a business and only one mistake to ruin it. "Book One" is a practicable guide and resource that every Insurance Agency should read and use as an effective risk management tool. "Book One" is now available on Barnes & Noble and on AmazonBefore you buy listen to Dan Meyer, attorney at O'Hagan LLC interview on "Insurance Producer Licensing," on Wrin.tv


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." & "Recommended Reading".  Remember 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"

Angelo J Gioia


AOA News, Views, Tips & More

Only the Revised I-9 Employment Eligibility Verification Form May Be Used for New Hires      

By Susan Karlovich, Esq. of Wilson Elser Moskowitz Edelman & Dicker LLP


The Immigration Reform and Control Act of 1986 (IRCA) makes it unlawful for an employer to knowingly hire or continue to employ an alien not authorized to be employed in the United States. Under IRCA, employers must comply with the requirements of verifying employment eligibility of all employees they hire by completing a Form I-9.



Pension Benefits do not Presume Retirement, only an Inference to be Considered with 

Totality of Circumstances

By Francis X. Wickersham, Esq. of Marshall Dennehey Warner Coleman & Goggin, P.C.


The Supreme Court holds that a claimant's receipt of pension benefits is not a presumption of retirement but is, instead, an inference that must be considered in connection with the totality of the circumstances.
City of Pittsburgh and UPMC Benefit Management Services, Inc. v. WCAB (Robinson); 18 WAP 2011; decided 3/25/13; by Chief Justice Castille.



The Economic Loss Rule in California

By Marc J. Zimet,Esq. of Jampol Zimet LLP

Back in 1965, Justice Roger J. Traynor wrote the foundation for the Economic Loss Rule in Seely v. White Motor Co., (1965) 63 Cal. 2d 9. The rationale behind the case held the law of contracts or warranty should cover economic losses for contractual parties. Through Seely, the courts created the Economic Loss Rule as it is known today: that plaintiffs suing in tort for negligence and similar claims cannot recover for pure economic loss-albeit with some exceptions. Applied to the construction defect area, this mean the defect must cause actual property damage in order for a plaintiff to sue in tort. 

Arbitration Agreement in Employee Handbook Enforceable, California Court of Appeal Rules   By Mark S. Askanas, Esq. of Jackson Lewis LLP

An arbitration agreement contained in an employee handbook was not invalid simply because the employer could change the handbook in its discretion, the California Court of Appeal has ruled. Serpa v. California Surety Investigations, Inc., No. B237363 (Cal. Ct. App. Apr. 19, 2013). Reversing an order denying the employer's motion to compel arbitration, the Court held that the implied covenant of good faith and fair dealing limited the employer's right to alter the agreement unilaterally; thus, the agreement was not illusory or unconscionable for lack of mutuality, as the plaintiff argued.



Waiver of Right to Sue Third Parties for Injuries Covered by Workers Compensation 

Upheld May 1, 2013

By Goldberg Segalla, LLP


On April 25, 2013, the Pennsylvania Supreme Court ruled in Bowman v. Sunoco, Inc. that a waiver of a right to sue third parties for injuries covered by workers' compensation - signed as a condition of employment - bars a negligence lawsuit against the employer's customers. On April 25, 2013, the Pennsylvania Supreme Court ruled in Bowman v. Sunoco, Inc. that a waiver of a right to sue third parties for injuries covered by workers' compensation - signed as a condition of employment - bars a negligence lawsuit against the employer's customers. 



By Andrew Barile of Andrew Barile Consulting Corporation


There are numerous advantages to captives over traditional commercial insurance. One is the access to underwriting and investment income, and component pricing, which gives the ability to control frictional costs. Another is an enhanced focus on loss prevention and claims handling. Others include the ability to provide coverage that may be unavailable or overpriced in the market. Similarly, the use of rating plans that re­flect groups' own good experience, rather than insurers' pools, and the facility for pooling risks of groups of employers, are advantages of cap­tives over traditional insurance.   



Securing Repeat Sales from Existing Customers with 2/2/2

By Mark Hunter, "The Sales Hunter"


Think 2 days, 2 weeks and 2 months as your rule for following up.

Each contact you make is designed to help you move from thanking the customer for their business to securing more business. 


Two days after the customer makes their purchase, reach out to them with a phone call thanking them for buying and making sure they received what they wanted with regard to the benefits they were looking to fill.
The objective of this call is to not only have the customer appreciating you more, but also to begin understanding better their needs.

Use the call to help identify another need with which you might be able to help them, either now or in the future.  



By Cynthia Cavoto of Firebrand Social Media


Advertising On Internet  


Ever since the advent of Internet, advertising on the World Wide Web has been very popular. Many corporations, companies and business have taken advantage of this and you can see ads on any web pages you visit. Consumer can go to any search engine and type the keyword relating to what they are looking for and hit search and they will be provided with a huge list from which they can select. This is a very cost effective and time saving method of advertising. 

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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 2013