E&O Weekly Prevention
Strategies for the Professional Agent
May 23, 2013

Agents of America

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AgentsofAmerica.Org forms a Strategic Partnership with Draft n Craft


Established in 2008, Draft n Craft is a cut to the chase Legal Process Outsourcing Company with strong and dedicated work force of professionals. Having established a brilliant track record, Draft n Craft has been partners of growth to many of the law firms and corporations in the UK and US. Draft n Craft's supreme focus has always been on helping lawyers deliver the best value to their clients by working on process and technology optimization, and by devising ways to rationalize client's operational spending. Each month the "Experts" at Draft n Craft will conduct an extensive research to scrutinize the US insurance sector and will add new thought, chronicle and ideas to support AOA quest in the form of research and articles dealing with topical issues and subject matter relating to the insurance industry


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 Still using "same o, same o" ways to tell your agency story?


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


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. 


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 check out, this month's Social Media eBook entitled, "Perfspot Traffic Secrets" for download.


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

Law Poses No Duty on Insurance Brokers to Disclose Incentive Arrangements to Customers


The Attorney General sued the insurance broker of Wells Fargo Insurance Services, Inc., alleging breach of fiduciary duties and also his repeated fraudulent or illegal acts in violation of the common-law statute. The New York Court of Appeals affirmed, as neither did the broker make any affirmative misrepresentations to the customers nor did any customer suffer demonstrable harm from the incentive arrangements.  



Best Strategies in Defending Professional Negligence Actions Against Insurance Agents and Brokers in Pennsylvania

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


In Pennsylvania, the basic elements of a cause of action founded upon negligence are (i) a duty, or obligation, recognized by the law, requiring the actor to conform to a certain standard of conduct, for the protection of others against unreasonable risks; (ii) a failure on his part to conform to the standard required; (iii) a reasonably close causal connection between the conduct and the resulting injury and (iv) actual loss or damage resulting to the interests of another.[28]



Missouri Court of Appeals Finds All-Sums Language Does Not Limit Coverage to Damage During the Policy Period

By Duana J. Grage, Esq. of Hinshaw & Culbertson LLP  

The Doe Run Resources Corporation v. Certain Underwriters at Lloyd's London, __ S.W.3d__, (Mo. App. Apr. 16, 2013)


On April 16, 2013, the Missouri Court of Appeals embraced an "all-sums" approach to long-tail environmental exposure claims by reversing a trial court's ruling that limited the insurer's coverage obligations to sums owed under a pro rata approach. The court reinstated a jury verdict award against the insurer for $62,481,238.30, which represented all environmental remediation costs paid by its insured.


Utah Enacts the Internet Employment Privacy Act: The Good, the Bad and the Ugly

By Scott Sweeney, Esq. of Wilson Elser Moskowitz Edelman & Dicker LLP 


Joining Maryland (SB 433), Illinois (HB 3782), California (AB 1844), Michigan (PA 478) and New Mexico (SB 371), Utah has enacted legislation limiting an employer's right to request that an employee or a job applicant provide his or her social media login information, including their username and password.   



Cephas is Still a Tough Standard for the Claimant to Satisfy in a Delaware Stress Claim 

By Jessica L. Julian, Esq. of Marshall Dennehey Warner Coleman & Goggin, P.C. 


Dan Pelletier v. Delaware Community Investment Corp., (IAB #1380379 - Decided 2/13/13) Under Cephas, in a pure mental stress claim (unlike a physical/mental claim), in order to be successful on a petition, a claimant must offer evidence demonstrating objectively that his work conditions were actually stressful. In addition, the claimant must prove that such conditions were a substantial cause of the claimant's mental disorder. Under this two-prong test, the stress does not have to be "unusual' or "extraordinary." 



By Goldberg Segalla, LLP

In a decision handed down last week, the Second Circuit reaffirmed its long-standing holding that a "paramour preference" - a situation where a supervisor shows favoritism towards one employee over another due to the existence of a romantic relationship between the supervisor and the favored employee - does not give rise to claims for sexual discrimination under either Title VII of the Civil Rights Act of 1964 or the New York State Human Rights Law.ubstantial Completion and the Statute of Limitations in Construction Defect Cases


Mitigating Risk In Hospital Mergers And Consolidations Through Careful Consideration of Workplace Laws 

By Jackson Lewis LLP 


The healthcare industry in the New York metropolitan area has been transformed in the last two decades through merger, acquisition and consolidation. Venerable independent institutions have been acquired by hospital systems; massive teaching hospitals have joined together to create even broader systems. Some institutions have disappeared. 

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