E&O Weekly Prevention
  
Strategies for the Professional Agent
April 30, 2015
Agents of America






 


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AgentsofAmerica.ORG (AOA) Announces A Strategic Partnership With Demotech, Inc. CLICK HERE.

 

Understanding the E&O Insolvency Exclusion

By W. Burke Coleman, Demotech, Inc.

 

Many agents' errors and omissions insurance policies exclude coverage for claims based upon or arising out of the insolvency of an insurance company.  These insolvency exclusions have been upheld by courts, but their application varies depending on the specific policy language.  It is important for agents to understand the nature of any insolvency exclusion in their E&O policies, when and how the exclusion is triggered, and the solutions that may be available for insolvency exclusions that restrict an agent's desired markets.

 

Congress Moves a Step Closer To Enacting Sweeping Cybersecurity Legislation

By Dianna D. McCarthy, Esq. and Hillard M. Sterling, Esq. of Winget, Spadafora & Schwartzberg, LLP

 

The House of Representatives is making significant progress on two major cyber-security bills.  The House passed one bill - the Protecting Cyber Networks Act ("PCNA") - on April 22, 2015.  The second bill - the National Cybersecurity Protection Advancement Act of 2015 ("NCPAA") is set for a vote on April 23, 2015.  If the NCPAA passes as well, the House will tack it to the end of the PCNA, and the combined bills will go to the Senate.  

 

What's Next for the Affordable Care Act...Information Reporting

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

 

Employers with a calendar year health plan who have completed open enrollment and tackled many of the significant compliance hurdles toward Affordable Care Act (ACA) compliance may feel they are entitled to a breather. But there is no rest for the weary. Many more challenges lie ahead. In 2016, "applicable large employers" (ALE) (determined without regard to any special transition rules) will need to satisfy the ACA's information reporting requirements for 2015 (using IRS Forms 1094 and 1095), which must be filed and furnished early in 2016. Employers must take steps now in order to be prepared.

 

Employees Email Communications Protected

By Marc J. Zimet of Jampol Zimet, LLP

 

Pursuant to the National Labor Relations Act, employees have a protected right to communicate with one another while at the workplace in regard to self-organization and employment issues. (Nat. Labor Rel.Act 7.) With growth in the use of e-mail in the workplace has come unique issues regarding employee rights to utilize e-mail, specifically, for 7 purposes and privacy rights regarding those communications.

 

Hackers Continue to Target Health Insurers

By Aaron J. Aisen, Esq. of and Frederick J. Pomerantz, Esq. of Goldberg Segalla

 

Another health insurer has fallen victim to hackers. Premera Blue Cross suffered a breach that may have affected upwards of 11 million consumers. The National Association of Insurance Commissioners ("NAIC") announced that Washington Insurance Commissioner Mike Kreidler was coordinating the response. NAIC President Monica J. Lindeen stated in the announcement, "Events like this underscore the need for consumers to take immediate and ongoing action to protect personal information like passwords to bank accounts, credit card companies, health insurance accounts and any electronic database that contains sensitive, personal information." In addition, "We urge insurance consumers to change passwords, check credit reports and carefully monitor all accounts that may contain sensitive information. State regulators are closely monitoring this attack, as well as the recent breach at Anthem, Inc."






Seven Phrases & Words Your Employees Never Should Say

By Michael Mercer, Ph.D. of MercerSystems

 

Beware:  Some words and phrases employees use are warning signs that those employees may be

-  Lazy

-  Unproductive

-  Unengaged

-  Thoughtless


 

Cautionary Tale for Directors and Officers of Not-For-Profit Organizations

By Joseph Monteleone, Esq. of Rivkin Radler LLP

 

Official Committee of Unsecured Creditors, on behalf of the Estate of Lemington Home for the Aged v. Baldwin, No, 13-2707, 3d Cir., January 26, 2015

 

In an Opinion on appeal of a jury verdict in the Western District of Pennsylvania, the Third Circuit has affirmed that verdict ruling that the employed Chief Financial Officer ("CFO") and Administrator of a failed not-for-profit nursing home facility had personal liability for claims brought by the unsecured creditors of that facility.  The conduct of the CFO and Administrator were particularly egregious, but somewhat more surprising was the Court's affirmance of liability on the part of board members who served in a voluntary capacity.

 

No Coverage Under Former Employer's Policy for Malpractice Suit Against Physician Because Physician's Employment Ended Before Claim Was First Made

By Lindsey Dean, Esq. of Tressler LLP

 

Because a former employee doctor was not an insured under a health clinic's claims-made policy at the time a malpractice claim was made, the malpractice insurer did not owe the doctor coverage for malpractice claims asserted against him and the health clinic and was not estopped from asserting defenses to coverage.Ill. Ins. Guar. Fund v. Chi. Ins. Co., 2015 IL App (5th) 140033.

 

NYDFS to Collect Data on Cyber Security, but Could Hackers Use This Database as a Road Map to Launch Targeted Attacks?

By Jonathan L. Bing, Esq. and Melissa K. Ventrone, Esq. of Wilson Elser

 

On March 26, 2015, the New York State Department of Financial Services (NYDFS) announced that it is broadening the scope of questions and topics in its current information technology (IT) examination framework. In addition, the NYDFS requires insurers to provide a response to 16 questions about their overall cyber security posture via a "secure portal," by April 27, 2015. This is part of the NYDFS's increased focus on cyber security.

 

 

 





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. 

 

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"Bringing the Best Together"
Angelo J Gioia
Publisher

 

"When Determination and Dedication Become Your Final Destination Success Will Follow"

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