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 Posted: Sat Nov 14, 2009 12:10 am Post subject: |
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| dec page short for declination of coverage, not the P&C dec page. Not a waiver, just a filed document that says we talked about it and they didn't want it. Incase they "forget" that conversation and get disabled and some attorney wants to talk about whose fault their adversity is. |
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BNTRS
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| Posted: Tue Nov 17, 2009 4:08 am Post subject: |
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I'd like to agree with BNTRS and InsTeacher.
However, here's my 2 cents worth:
You sit down with Mr. and Mrs. Jones and show them 3 different versions of a $1MM life insurance policy intended to cover their estate worth $5.5MM. When you attempt to close the sale, they inform you that both their CPA and attorney must be consulted first. You persist and inform them that you're even willing to take their information and submit a COD application. "No" they say, "we'll get back to you after we meet with our counsel."
Later that week, Mr. Jones is killed tragically in a car crash - and doesn't have any life insurance to speak of. When Mrs. Jones meets with her attorney, she informs him that she had met with you, selected a policy, offered to write your company a check and you refused to do business with her (and her late husband) beacause you had to "check on something better."
Now it's your word against hers, she's got a hot lawyer, $5.5MM in her checking avccount, and the name of your E&O carrier.
As an agent, can you imagine how you would react to an E&O inquiry after they've received a demand letter from her attorney?
I've seen many different versions of the letter in question and I can't say I disagree with what the agent is trying to accomplish. I believe a signed letter would weigh heavily in the case I've outlined above and an E&O company's counsel would find it very valuable.
Could this scenario be real? Could OJ be guilty? In our increasingly litigious society, this could happen in less than a heartbeat and an insuance company would pay off to avoid any potential bad exposure. Sure, it's not fair but welcome to life on planet Earth.
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InsInvestigator
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| Posted: Tue Nov 17, 2009 4:08 am Post subject: |
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In fact, this reminds me of an Allstate case - and they paid.
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InsInvestigator
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| Posted: Tue Nov 17, 2009 5:40 am Post subject: |
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I've seen many instances where a plaintiff's lawyer says "boo!" and the insurer says "how much?"
For the UMPTEENTH TIME...(whew) I am NOT SAYING that PROPERLY WRITTEN waivers are BAD. They're GOOD.
POORLY written waivers cause the grim reaper to come a stalkin'. What I'm saying is that the use of a properly executed waiver can save your backside and are not only a good idea, but should be considered a requirement in certain cases.
Also remember that even though you may not lose your case, it still has to be defended and that costs money. Your E&O coverage provides for defense costs if coverage applies, but more and more carriers are placing exclusionary language in their E&O contracts that make them now look more like medical malpractice policies. There's now specific language in a lot of policies that will not pay for acts for which the agent engages in but is not qualified to do. For example- an agent plays around with an insured's estate plan without having any estate planning training or certification. Oooooops! Several states have enacted legislation that bars a person from claiming they're a "financial planner" or an "estate planner" unless they have the professional designations to back it up.
InsTeacher 
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InsTeacher
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| Posted: Wed Jan 13, 2010 7:48 pm Post subject: |
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Just thought I'd follow up with and post a link from an article that just came out in Insurance Journal today. "Insurance checklists and client letters are important."
http://www.mynewmarkets.com/articles/106492
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AnMarieB
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| Posted: Fri Jan 15, 2010 7:58 pm Post subject: |
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One problem with the post is that if someone has a policy and then signs that form because they have changed their mind, they are going to think that they have cancelled their policy and that isn't true. It may be an E&O claim waiting to happen.
On the other hand, when a client isn't doing something that they should be doing, it is smart to have this documented. The agent can have the client sign something, but the problem with this is it's tough to do it in a way that doesn't come across as slimey and gimmicky.
The better way is to simply send a letter that mentions that they have chosen not to buy XYZ that you have recommended for the following reasons.
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