E&O Considerations for Coastal Agencies Exposures & Risk Management Corporate Solutions

2 Agenda E&O Exposures for Coastal Agencies E&O Underwriting for Coastal Agencies E&O Risk Management for Coastal Agencies

Corporate Solutions 3 E&O Exposures for Coastal Agencies Limited Markets Available – Unique Placement Requirements – Premium Required, Waiting Period, etc. – Different Coverage from Standard Market – Carrier Non-Renewals – Replace Coverage Multiple Policy Placements – Wind + Flood + HO – Inadequate Limits Brokered Business – No Binding or Certificate Authority – Additionally processing risks

Corporate Solutions 4 E&O Risk Management for Coastal Agencies Know the carrier submission/binding requirements – Use Process Checklists Carefully review policy forms when replacing coverage – Coverage Checklists – Obtain Insured Signature Consistent Procedures – Audit for Compliance – Update as Needed Document, Document, Document!

Corporate Solutions Carrier(s) Business Mix Carrier Ratings Insolvency Exclusion INSOLVENCY. The financial inability to pay, insolvency, receivership, bankruptcy or liquidation of any insurance company, any Individual Practice Association, Health Maintenance Organization, Preferred Provider Organization, Dental Service Plan, Risk Retention Group, Risk Provider Group, self-insured plan or any pool, syndicate, association, or other combination formed for the purpose of providing insurance, or reinsurance, or any healthcare provider or any reinsurer with which the INSURED directly placed the subject risk. However, this exclusion does not apply if, at the time the INSURED placed the subject risk with any of the above-described entities, such entity or entities were rated by AM Best as B+ or higher, or alternatively, such entities were member insurers of the state guaranty fund or guaranty association in the state or states of domicile of the subject risk, or such entities were guaranteed by a governmental body or bodies and/or operated by a governmental body or bodies, or the coverage was placed with an insurance carrier through a state established residual market insurance program; or the coverage was placed with a County Mutual reinsured by carriers rated by AM Best as B+ or higher. 5 E&O Underwriting for Coastal Agencies

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