E&O Weekly Prevention
  
Strategies for the Professional Agent
February 26, 2015
Agents of America






 


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AOA News, Views, Tips & More

A Study of Actual Payouts for Data Breaches                                                                                         

This report summarizes findings from 117 data breach cyber liability insurance claims, and examines the type of data exposed and the cause of loss, by business sector and size of the affected organization. Assess the likelihood and impact of a data breach affecting you: Read the full report

 

For additional information please contact Violet Silko, Esq. Incident Response Specialist at AllClear ID. Call (512) 236- 0486 or violet.silko@allclearid.com.

     

Your Cell Phone May Be Spying On You

 

Do you have a flashlight on your cell phone? If you do you need to watch this  Video. 

 

 

Insurance Agent Who Provided Carrier's Valuation and Two Competing Quotes Did Not Counsel the Insured and Create a Special Relationship

By Donald A. O'Brien, Esq. of Hinshaw & Culbertson LLP

 

Cox v. Mayerstein-Burnell Co., Inc., Case No. 79A05-1402-CT-75; Court of Appeals of Indiana (Oct. 31, 2014).

 

Plaintiff Cox's pub had insurance coverage with Society Insurance on its building for $383,000. Plaintiff could no longer afford to pay the premiums and let the Society policy lapse. Plaintiff's manager contacted defendant insurance agent about a replacement policy advising that it was uninsured and due to financial difficulties desired to keep its premiums as low as possible. 

Illinois Appellate Court Penalizes Insurer for Not Re-Asking Questions in Renewal Application the Insured Already Answered Incorrectly in Prior Application

By Jonathan L. Schwartz, Esq. and Kevin P. Lolli, Esq. of Goldberg Segalla LLP

 

In Illinois State Bar Association Mutual Insurance Co. v. Brooks, Adams & Tarulis, 2014 IL App (1st) 132608, the Illinois Appellate Court held, in relevant part, that the Illinois State Bar Association Mutual Insurance Company ("ISBA") could not rescind a renewal policy based on a misrepresentation in the initial policy application when there was no incorporation of the initial application of insurance into the renewal policy.


Explicit Monetary Demand Is Not Required To Constitute a "Claim" Under Claims-Made Professional Liability Insurance Policy

By Elizabeth M. McGarry, Esq. of Tressler LLP

 

In Philadelphia Consolidated Holding Corp. v. LSI-Lowery Sys., 2015 U.S. App. LEXIS 349 (8th Cir. Mo. Jan 9, 2015), U.S. Court of Appeals for the Eighth Circuit, applying Missouri law, found no coverage under two successive "claims-made" professional liability insurance policies issued by the same insurer for a claim against its insured. The court found that the claim was made before the inception of the second policy and the insured had not given timely notice of the claim under the first policy. The court rejected the insured's argument that its email exchange with a dissatisfied customer during the first policy period did not constitute a claim.

 

By Michael Mercer, Ph.D. of Mercer Systems, Inc.

 

You sometimes will find it useful to consider an applicant's appearance or looks when you make hiring decisions.  Perhaps you do not like this.  But it can help you when looks impact employee productivity.

 

Of course, you must hire applicants who possess job-related skills needed on the job.  And sometimes applicant appearance or looks happens to be one job-related quality that increases odds the applicant could become a productive, profitable employee for your company.

  

California Appellate Court Finds No Malicious Product Tampering Coverage for Westland Ground Beef

By Joseph F. Bermudez, Esq. and Suzanne M. Meintzer, Esq. of Wilson Elser etal.

 

In 2008, Windsor Food Quality Company, Ltd. (Windsor) purchased Westland/Hallmark Meat Company's (Westland's) ground beef as an ingredient to be used in its JosÚ OlÚ« frozen food products. On January 30, 2008, the U.S. Department of Agriculture (USDA) suspended Westland's operations based on its use of non-ambulatory disabled cattle or "downer" cows. A voluntary Class II recall involving two years of Westland's products was announced on February 17, 2008. Windsor also conducted a voluntary recall of its products incorporating Westland's beef, which amounted to approximately $3 million in recall costs.

 

Employer FAQs: Responding to the Anthem Breach

By Joseph J. Lazzarotti, Esq. of Jackson Lewis P.C.

 

The first massive data breach of 2015 hit one of the country's largest insurance issuers, Anthem, Inc., including Anthem Blue Cross and Blue Shield and other related entities (Anthem). The incident reportedly affected over 80 million persons who are or were covered under a policy or program insured or serviced by Anthem. The personal note from Anthem's CEO, Joseph R. Swedish, and the Anthem Facts (or FAQs), seek to provide helpful information to the millions of individuals affected. 

California Appeals Court Rules Policy Exclusion Void as Against Public Policy

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

 

The California Court of Appeals for the 4th District recently found an auto insurance policy's exclusion to be void as against public policy for being overbroad. In Mercury Casualty Co. v. Chu et al (2014) 229 Cal.App.4th 1432, the passenger in a car was injured when his roommate, the owner and driver, collided with another car. The driver had an insurance policy with Mercury Casualty covering bodily injuries sustained by non-insureds, but excluding any insured defined as "residents who inhabit the same dwelling as the named insured." By its own terms, this included non-relatives. After trial, the passenger was awarded $330,000. Mercury moved for summary adjudication, claiming the exclusion excluded coverage for the passenger who, as the driver's roommate, inhabited the same dwelling as its insured. The Superior Court found in favor of Mercury, holding that the policy "clearly and unambiguously" excluded the passenger-roommate from any recovery. He thereafter appealed, arguing the exclusion was overbroad.






Letter From  the Publisher

NOW AVAILABLE ALL THREE BOOKS IN THE RISK MANAGEMENT SERIES


Protecting Your Reputation

 

As every Insurance Agent knows, their most important asset is their reputation, it takes years to build and just one mistake to ruin. Understanding the issues is the first steps in avoiding E&O Claims. AOA has created a three book series dealing with 56 different E&O topics and issues agents face every day. Enter promo code
WPD20 at checkout for an additional 20% discount.

 

 

Book One - 

A Comprehensive Guide To Avoiding E & O Claims

20 Chapters - 450 pages

 

This book addresses the broad swath of risks from which claims against insurance agents arise. It provides clear and concise risk management and risk-avoidance guidance, and provides solutions for each of the potential claims issues. It also provides comprehensive discussion of the legal issues that may arise in such claims and how the various states treat those issues.

This is Book One, the primary focus of this book is to provide insurance and legal professionals with keen insight into the issues that insurance agents face on a daily basis. While our society is more litigious than ever, through education and awareness, insurance agents can better understand this legal society and take the necessary proactive steps to minimizing the chances of their agency facing some form of E&O litigation.

ORDER NOW
 

Book Two - 

E&O Exposures in the Sales Process

18 Chapters - 587 pages


 

This book identifies and explains the E&O issues and exposures related to the typical new and renewal sales process within insurance agencies. Solid detail is provided addressing the E&O exposures for agencies during the pre-sale, sale and post-sale periods. The course addresses such issues as the legal duties of both the agents and their customers, the critical importance of education of both the staff and customers, the benefits of account reviews and the power of a signed application. Throughout each chapter, best practice solutions are provided to help agents manage those exposures.


This is Book Two, the primary focus of this book is to provide insurance and legal professionals with keen insight into the issues that insurance agents face on a daily basis. While our society is more litigious than ever, through education and awareness, insurance agents can better understand this legal society and take the necessary proactive steps to minimize the chances of their agency facing some form of E&O litigation. 

 

Table of Contents


Book Three - 

E & O Exposures By Line of Business

18 Chapters - 746 pages


This book identifies the unique E & O issues and exposures of the various lines of business, including personal auto, homeowners, general liability, directors and officer's liability, and employment-related practices liability. Each chapter contains solid detail for a specific line of business, and provides best practices and solutions to help agents manage those exposures.

This is Book Three, the primary focus of this book is to provide attorneys and insurance professionals with keen insight into the issues that insurance agents face on a daily basis. While our society is more litigious than ever, through education and awareness, insurance agents can better understand this legal society and take the necessary proactive steps to minimize the chances of their agency facing some form of E&O litigation.

 

 

Do You Need Continuing Education?

Complete your entire State-Required CE Online with WebCE! AOA 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. 

 

AgentsofAmerica.ORG newsletter is FREE! Also, if you have any thoughts, comments or suggestions, please email me at info@agentsofamerica.orgWe also would like to extend an invitation for you to join AOA's LinkedIn group at AGENTS OF AMERICA

 

"Bringing the Best Together"
Angelo J Gioia
Publisher

"Simplicity is the ultimate sophistication" - Leonardo da Vinci

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