166 PERSONAL LINES/AGENT LIABILITY - ceclass.com

1 166. PERSONAL . LINES/AGENT . LIABILITY . Source of LIABILITY , 4. agent Responsibilities, 6. Why Insurance Fails, 29. Managed Conflicts, 46. agent Blunders, 97. Beyond Insurance, 105. iPad and Tablet Users See DEMO & Links Above Click To Page Home / Search CONTENTS. Failure to renew / notify 15. Fax messaging 68. Fiduciary duty of agent 47. Fraudulent conveyance 106. Advertising promises 16 Hearsay evidence 63. Agency agreements 8 Illustrations and quotes 90. agent agreement 8 Insurance litigation 31. agent blunders 97 Insurance producer status 11. agent call center 65 Insurer claims against agents 22. agent duties 8 Insurer insolvency 39.

2 agent integrity 48 Law of agency 9. agent LIABILITY 7 Lazzara vs Howard Esser 101. agent marketing practices 50 Legal entity protection 106. agent promises 16 LIABILITY by insurance company failure 24. agent records 30 License responsibilities 49. agent relationships and insurer failure 27 Limitations on coverage 38. agent responsibilities 6 Liquidation 39. agent torts 17 Loss control 76. agent vs broker 12 Managing conflicts 46. agent vs professional 14 Matching client needs with product 75. Agents as fiduciaries 20 McConnell vs Ehrlich 83. agent 's file 64 Minimum standards 17. Alaniz vs Simpson 15 Misrepresentation 37.

3 Applications 85 Misrepresentation & insurer failure 25. Asset protection106 Multi-entity protection 111. Authority to bind 23 Negligence & misrepresentation 18. Bad faith 18 Office protocol 63. Best Practices 72 Offshore protection 110. Beyond insurance 105. Online communications 68. BSF Inc vs Cason 98 Operations manual 64. Client / agent relationships 19 Opt-out 56. Client privacy 52. Ostensible agent 11. Client understanding of policies 17 Parol evidence 63. Concealment 36 Policy ambiguity 17. Consumers 55. Policy promises 16. Contract disputes 14 Premium financing 23. Contributory LIABILITY 19 Quotes 90.

4 Correct coverage 91. Reinsurance 44. Correspondence 64 Reinsurance 42. Coverage disputes 29 Sales conduct 79. Coverage shortfalls 29. Settlement disputes 39. Customer handling 69 Source of PERSONAL lines LIABILITY 4. Customer retention 73 Standard operating procedure 64. Defenses of the insurer 36. State Farm vs Gros 103. Disclosure 58 State Guaranty Funds 40. Drafting history 30 Twisting 51. Dual agency 14. Underwriting 93. Duty to defend, insurer 33 Unfair practices 24. Eddy vs Sharp 20 Unlicensed employees 12. Environmental litigation 35. Warranties and conditions 37. Errors & omissions insurance 60 Warranty 38.

5 Ethical selling 80 What policies say / mean 17. Ethics 57. Why insurance fails 29. Exclusions 33. Failure to notify lack of coverage 15. Failure to procure coverage 15. Click To Page Click To Page Home / Search Click To Page Home / Search The Sources of PERSONAL Lines LIABILITY The term buyer beware may have been around since ancient Rome, but it means little to a disgruntled insurance client. Why? Because no matter how PERSONAL lines agents try to avoid it, they are principals to every insurance transaction. Face it, an unsuspecting client, who on the advice or silence of his agent , buys the wrong coverage or fails to acquire a proper endorsement, is hurt a lot more than someone who buys a fake Rolex for $20 on the street corner.

6 Consequences to the agent for his negligent acts are similarly severe when one considers malpractice judgments in today's litigious society. These are reasons why agents need to understand agent LIABILITY issues and practice loss control for themselves and their PERSONAL lines practice. Furthermore, courts recognize the severity of botched insurance. Let's look at some of things that can and do go wrong: agent Jim covers Bill and Mary's house that is leased to their son Dave, the sole resident of the house. Bill and Mary are also full-time residents in their own home. A pit bull owned by Dave attacks a neighbor who sues Bill and Mary as the homeowners and Dave as the owner of the dog.

7 Dave claims residency under his parent's policy, but lacking any evidence that Bill or Mary actually reside with him, coverage for the $2 million claim is denied. agent Cathy tells a homeowner Harry that his riding lawnmower is covered . Harry's neighbor is away for two weeks, so Harry plans to surprise him by mowing his lawn. While Harry is cutting the neighbors lawn he injures a small child passing through the yard. Since his policy states that covered vehicles include those used to service an insured's residence , his claim is denied. agent Mike advises his client that their son's computer is covered by their homeowner's policy while he is away at school.

8 Toward the end of the school year, the son's roommate left the door unlocked and someone removed the $2,000 computer. The claim was denied because the son was enrolled with only 11 units making him a part-time student. The client's HO 2000 policy defines an insured student enrolled in school full time. A special endorsement for part-time students living away from home was cited as the reason that the clam might be denied. agent Lucy recommends that her insured Bob does NOT purchase the Collision (or Loss). Damage Waiver for a rental car he needs while his own auto is in the shop. What Lucy missed is that her PAP ( PERSONAL Auto Policy) Covers the lesser of the actual cash value of the vehicle or the amount necessary to repair or replace the damaged property.

9 Unfortunately, the auto rental company's agreement obligates Bob for the full value of the vehicle. Can you see a potential problem? Mike is a PERSONAL lines agent with many affluent clients. Sally and Rich ask Mike to cover their home but fail to mention that it is actually titled in the name of their PERSONAL trust. The HO 2000 ISO, however, requires a special residence held in trust endorsement for full benefit of all coverages. Are Mike's clients covered or not? Mark and Suzy have asked their agent Paul his opinion on writing a separate auto policy for their teenage daughter Hailey. Paul said sure it can save you a lot of money because at 17 she only needs to buy the minimum coverage.

10 One day, Hailey's brother, Dirk, borrows her car for a quick trip to pick up parts for his own car which is not running. A major accident occurs with a vascular surgeon who, because of his injuries, loses his ability to practice. Mark and Suzy submit their claim only to find that a special family member exclusion in their policy means they have no coverage for any resident member (Dirk) using the auto of another resident member unless that auto is insured under the parents' policy. 4. Home / Search Erica and John are getting a divorce. Ina fit of rage, John, who is named on the title to the couples four vehicles, faxes you over a demand to remove Erica from the policies.