Preferred Risk E&O Insurance is a professional liability insurance program designed especially for Marketing Financial financial professionals with clean records. The program is underwritten by CNA Insurance and offered and administered by Oxford Insurance Agency.
- How can I qualify for this Errors and Omissions program?
Currently, you must either be: a current Marketing Financial member or a non-member who successfully answers Marketing Financial's E&O Insurance screening questions for preferred risk agents and advisors.
- How is Marketing Financial E&O Ins. different from traditional E&O Group Sponsored Insurance programs?
The policy is menu driven.Therefore each applicant has the ability to choose the coverage they need and are not paying for coverage’s they may not be selling.
- What are the policy's limits of liability?
The Limits of Liability are: $1 million each claim $2 million individual insured annual aggregate $15 million total policy aggregate for all insureds.
- What are the policy deductibles?
The policy's deductibles are:
$500 - life, health, accident, long-term care
$2,500 - disability income, fixed, or indexed annuities
$5,000 - mutual funds, variable annuities,
- What basic coverage is available under the policy and what is the total cost (inclusive of premiuim and Oxford Insurance administrative fee)?
The basic coverage (Package A) under the policy is the sale, attempted sale, or servicing of life insurance, accident and health insurance and managed health care organizations contracts. The cost associated with this coverage is $475 per year.
- Are there additional coverage options available and what is the total cost (inclusive of premium and Oxford Insurance administrative fee)?
Yes, the additional coverages available are:
1. Package B which includes the basic coverage noted in 5 above plus Fixed and Indexed Annuities. The cost associated with this coverage is $555
2. Package C which includes the basic coverage noted in 5 above and Fixed and Indexed Annuities noted in 6.1 above. The cost associated with this coverage is $661.
- Can I get E&O coverage for disability insurance and, if so, how much does it cost?
Yes, you can purchase disability insurance coverage. It costs an additional $27, and may be added to any of the three coverage packages shown above.
- What are my payment options?
Pay annually by credit card.
- Does Preferred Risk E&O Insurance offer an extended claim reporting period?
Yes, the Errors and Omissions policy features an Automatic 12 month Extended Reporting Period beginning on your date of termination and terminating 12 months thereafter. In other words, you (or your heirs) can still file a claim made during the extended reporting period for an event that occurred while you were covered under the insurance policy, even if you retire, become disabled, change careers, or die. You must have been an insured under the policy for a minimum of six months and paid applicable premium to qualify.
- Is the policy's coverage retroactive to the date of your first continuous E&O?
Prior acts coverage is dependent on your designation. With respect to an agent or general agent, the prior acts date is the date the agent or general agent became continuously insured without interruption under any claims made professional liability policy (subject to written proof of such coverage at the time the insured gives written notice to the insurer of a claim under the policy).
With respect to a Registered it is the latest date the Registered Representative contracted with the Broker/Dealer.
- Do I have protection as a notary public?
No.
- Does the policy cover legal fees and related costs relating to your E&O claim?
Yes. Defense costs are included within the limit of liability.
- Does the Errors and Omissions policy cover the actions of employees or administrative personnel acting on your behalf, and are there any restrictions?
Yes, it does cover those actions, subject to all of the policy’s terms, conditions and exclusions. For example, coverage is triggered for you if your secretary makes an error servicing one of your clients and it results in an E & O claim. However, the policy does not cover the activities of other financial professionals with whom you work. If another licensed professional in your office makes an error with your client, you would not be covered.
- Does the policy offer coverage for failure to supervise, manage, or train your staff?
Yes. Coverage is provided to a General Agent in the supervision, management and training of an insured agent, subject to all of the policy’s terms, conditions and exclusions... In other words, if someone who is employed by you commits an error or omission, in conjunction with activities covered under the policy, that results in a claim, you will be covered under this policy.
- Am I protected if I act as a fiduciary advisor to an ERISA plan?
No. Administration of 401(k) and any other retirement plans are not covered activities under this E&O Insurance policy.
- Am I covered if I provide fee-based financial planning services ancillary to my other professional services?
Yes, subject to all of the policy’s terms, conditions and exclusions and as long as the financial planning activities are in conjunction with the professional services you purchased, i.e. sale, attempted sale, or servicing of life insurance, accident and health insurance, managed health care organization contracts, disability income insurance (if coverage is purchased), indexed/fixed annuities (if coverage is purchased).
For a Registered Representative, the policy provides coverage for financial planning activities in conjunction with the sale, attempted sale or servicing of variable annuities or mutual funds (if purchased) that are registered with the Securities and Exchange Commission (if required) through a Broker Dealer that is a member of the Financial Industry Regulatory Authority.
- Why did Marketing Financial select CNA as the program's underwriter?
CNA met all of the standards for product design and cost. In addition, the firm met our standards for financial strength and solvency. Specifically, CNA is the 7th largest U.S. commercial insurer and the 13th largest U.S. property & Casualty insurer. CNA provides insurance protection to more than 1 million businesses and professionals in the U.S. and internationally.ii Key CNA statistics include: $10 billion in revenues 100+ years in business 9,400 employees "A" rated for financial strength by A.M. Best.
- The E&O policy refers to "retentions" instead of "deductibles". Are these the same thing?
Yes, those are synonymous terms.
- Do you offer any other limits of E&O Insurance coverage other than $1 million/$2 million and do you offer any other deductible options?
No, those are the only limits and deductibles available.
- I've sold Unit Investment Trusts (UITs) and Real Estate Investment Trusts (REITs) in the past. Are my activities covered under any of the policy options?
No. The Errors and Omissions policy excludes coverage for activities relating to those products.
- If I fax in my E&O Insurance application on the weekend or a holiday, will I be covered that same day?
No, all request for coverage must be completed via our website.
One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2010 CNA. All rights reserved. |
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