E&O Prevention
Strategies for the Professional Agent
July 9, 2015

Agents of America


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Excess & Surplus Lines Laws


We are happy to provide the  2015 Edition of Locke Lord LLP's Excess and Surplus Lines Law Manual.

This edition reflects all of the pertinent changes in the surplus lines laws and regulations of the 50 states and U.S. territories during the past year. We sincerely trust you will find this manual to be a valuable desk reference and if you have any questions regarding the contents, please contact John P. Dearie, Jr., Esq. Editor and Partner at Locke Lord LLP at jack.dearie@lockelord.com or (212)912-2737



10 Traps in Your D&O Insurance

By William G. Passannante, Esq. and Joshua Gold, Esq. of Anderson Kill P.C.


D&O Insurance Policy Improvements & Claims Strategies

D&O insurance typically provides broad coverage for alleged "wrongful acts." Despite this breadth of coverage, disputes are not uncommon - especially where the claims are large. When buying or renewing D&O insurance coverage, it is important to work with an experienced risk manager or insurance broker who can focus not only on price, limits and structure, but on the fine print too. Below are 10 areas that can be enhanced in your D&O policies and management of claims to head off improper coverage defenses.


I Was Fired From My Job. How Do I Address This Issue In An Interview Without Compromising My Candidacy?

By Julie Q. Brush, Esq. of Solutus Legal Search LLC


Once you've gone through the process of analyzing and learning why things didn't work out in your last job and taken some time to regroup, you are now ready to put your best foot forward in your job search. But even though you may "feel ready" there still may be anxiety, confusion and fear about addressing your dismissal in an interview setting. When asked about the reasons or nature of your departure, be honest. But choose your words and messaging carefully. Your goal is to provide an honest explanation while projecting confidence, a positive attitude and professionalism rather than animosity, insecurity and red flags.


Avoid Agent E&O When Handling Problem Claims

By Brent Winans of Clear Advantage Risk Management


Insurance agents-be careful about advocating for your clients when the insurance company has denied their claim. Insureds-understand that your insurance agents may be more hesitant to "go to the wall" for you on a claim than in the past for fear that you may end up suing them.


What the Supreme Court's Decision on Affordable Care Act Subsidies Means for Employers

By Joy M. Napier-Joyce, Esq. , Melissa Ostrower, Esq. andMonique Warren, Esq. of Jackson Lewis P.C.


The Internal Revenue Service was authorized to issue regulations extending health insurance subsidies to coverage purchased through health insurance exchanges run by the federal government or a state, the U.S. Supreme Court has ruled in a 6-3 decision. King v. Burwell, No. 14-114 (June 25, 2015).


Supreme Court's Marriage Decision Should Prompt Employers' Review of All Employment Policies

By Dean A. Rocco, Esq. and Angela M. Duerden, Esq. of Wilson Elser et al


"No union is more profound than marriage, for it embodies the highest ideals of love, fidelity, devotion, sacrifice, and family. In forming a marital union, two people become something greater than once they were. ... Their plea is that they do respect it, respect it so deeply that they seek to find its fulfillment for themselves. Their hope is not to be condemned to live in loneliness, excluded from one of civilization's oldest institutions. They ask for equal dignity in the eyes of the law. The Constitution grants them that right." Obergefell v. Hodges, 576 U.S. ___ (June 26, 2015).


WORK ETHIC FORECASTING: Pre-Employment Tests, Child Labor, & More

By Michael Mercer, Ph.D.


Amazingly, pre-employment tests, child labor, certain job interview questions and more help managers forecast if a job applicant possesses a terrific work ethic or a lousy work ethic.



Employees with a good work ethic


+  show up at work

+  arrive before their start time

+  put in more than a day's work for a day's pay

+  conscientiously do work assignments

+  consistently are highly productive

+  work well with others


No Breach of Contract Where Code Not in Contract for Architectural Services

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


Mary Imogene Bassett Hospital v. Cannon Design, Inc., Supreme Court, Appellate Division, Third Department, New York, Docket No. 519411 (April 9, 2015)


Plaintiff hospital contracted with the defendant architectural firm to provide structural design services for a seismic retrofit of one of its buildings. Defendant's design used four steel plate sheer walls. The 2000 International Building Code (IBC) was not mentioned in the contract, though certain Code Standards were listed in the defendant's structural design criteria and in the technical drawings. The contract stated that the defendant's design services were to be provided "in a manner consistent with the standards of care and skill exhibited in projects of this nature." 

SCOTUS: Affordable Care Act Subsidies Apply to Federal Exchanges

By Aaron J. Aisen, Esq., Matthew S. Lerner, Esq and Fallyn B. Cavalieri, Esq. of Goldberg Segalla LLP 


On June 25, 2015, in a 6-3 opinion written by Chief Justice John Roberts, the United States Supreme Court held that the subsidies available in the Affordable Care Act apply to participants in both state and federal healthcare exchanges. A key component of the Affordable Care Act (i.e., the part that helps make this insurance affordable) is tax subsidies for those who qualify under the income requirements stated in the Act. Language in this provision, according to the petitioners and the dissent, appeared to limit these subsidies to those who purchased their health insurance in "Exchanges established by the State." 


Failure to Comply With a Consent to Settle Provision in Excess Insurance Policy Precludes an Insuredā€™s Bad Faith Lawsuit

By Lindsey Dean, Esq. of Tressler LLP


Because an insured failed to obtain its excess insurer's consent prior to entering into a settlement, the insured violated the "consent-to-settle" clause in the policy and was precluded from maintaining a bad faith and breach of contract action against the insurer. Piedmont Office Realty Trust, Inc. v. XL Specialty Ins. Co., No. S15Q0418, 2015 Ga. LEXIS 247 (Apr. 20, 2015).


10 Rules for Using Social Media to Prospect

By Mark Hunter "The Sales Hunter"


1. Don't think social media is going to replace traditional prospecting methods.


View social media as another tool to help you prospect. Most of all, never allow yourself to take the quality time you devote to prospecting and spend it doing social media.


Biggest mistake you can make is thinking all you need to do is devote all your prospecting time to social media and everything is going to work out great.


Letter From  the Publisher

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


Book Two - 

E&O Exposures in the Sales Process

Book Three - 

E & O Exposures By Line of Business

Demotech, Inc.

Since 1985, Demotech, Inc. has served the insurance industry by assigning accurate, reliable and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurers and Title underwriters. FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer.  You can search the most current FSRs here.


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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