Assurity requires that all agents maintain Errors & Omissions coverage with a minimum coverage of $500,000 for each claim per agent with a maximum $50,000 deductible. The coverage must cover Assurity products.
The E&O declaration page should be submitted with new agent contracting. The E&O coverage will be reviewed at the time of submission of first application. A current declaration page will be required at that time if the coverage has expired. For contracted agents, we ask that a new E&O declaration page be submitted each time the policy renews.
The following items are considered when the declaration page is reviewed:
•Policy period – When the coverage was issued and when it will expire. The coverage must be current and active when the business is written.
•Policy insured – If the agent is not listed as the certificate holder, we need further proof of coverage. Further proof may be determined by submission of the full copy of the policy, a statement from the E&O insurer, the agent’s actual certificate, or a copy of the policy addendum listing the agent as an insured. In the case of agency coverage, the definition of “employee” usually only covers solicitors to the agency or an agency’s officers.
•Minimum coverage amount provided per claim ($500,000 minimum).
•Policy deductible ($50,000 maximum).
•Exclusionary language that would limit or prohibit coverage on the sale of Assurity products – E&O coverage purchased through a broker dealer often contains exclusionary language. In most cases, we require a written statement from the broker dealer outlining that Assurity products are covered under their E&O program and verifying the agent is approved to sale our products.
•Exclusions on the types of products that can be sold – There are E&O insurers that provide optional coverage for products such as fixed annuities and disability income insurance. An agent must obtain E&O coverage for all Assurity products that fall under their lines of appointment.
Example: An agent is appointed to sell health products and has E&O coverage for life, accident and health. The agent does not hold the optional coverage for disability income insurance. Because our disability income product falls under the health line, we will require that the additional coverage for disability income insurance products be purchased.
If you received an updated E&O declaration page and have not sent it to Assurity, please fax or email us a copy to (402) 437-3865 or contracting@assurity.com.