E & O Coverage Highlights

Insurer:  Praetorian Insurance Company – An Admitted Carrier. Praetorian has an A.M. Best rating of “A-”, X.

Policy Limits (Applicable to Defense Costs and Damages):

Options available are:
$1,000,000 per Wrongful Act and Rep Aggregate
$5,000,000 Policy Aggregate
or
$2,000,000 per Wrongful Act and Rep Aggregate
$5,000,000 Policy Aggregate

Retention:  $1,000 or $2,500 (dependent on which limit option is chosen)

Coverage:

• Coverage is on “Claims Made & Reported” basis, which covers claims first presented to an Insured Agent/Rep and reported to the Insurer during the policy period.
• Coverage extends to an Insured Agent/Rep business entity but only with respect to those operations of the business entity related to the covered Professional Services provided by an Insured Agent/Rep.
• Coverage extends to licensed & unlicensed administrative staff for their activities in support of an Insured Agent/Rep, as long as they work solely in that capacity and do not produce or sell insurance.
• Coverage for Prior Acts is provided back to the date the Insured Agent/Rep maintained continuous Errors & Omissions insurance coverage. However, the policy excludes any claim arising out of any Wrongful Act occurring prior to the inception date of the policy if the Insured knew or could have foreseen that such an act might be the basis of a claim or suit. Evidence of continuous Errors & Omissions insurance is required at the time an actual claim or incident is reported.
• Coverage extends to the sale and/or servicing of individual and group Life, Accident & Health, Disability, Long Term Care Insurance, Employee Benefits Plans and Individual and Group Retirement Plans.  Options are available to include coverage for Variable Products and Mutual Funds.

This outline provides general information on your Errors and Omissions Insurance Program.  It is not intended to interpret the terms of the policy or to be legal advice, but rather summarizes our understanding of the coverage provided. It is not a part of the policy, nor does it modify or serve as a conclusive statement of its terms.

What Activities Are Covered Under This Policy?
Sale or attempted sale and servicing of:

• Life Insurance
• Accident & Health Insurance
• Long Term Care Insurance
• Disability Insurance
• Fixed Annuities
• Employee Benefit Plans, Individual Retirement Arrangements, IRAs and KEOGH Retirement Plans (see below)
• Administration of Employee Benefit Plans (see below)
• Variable Products – if this option is elected
• Mutual Funds – if this option is elected
• Financial Planning incidental to the sale of the above products.