P&C Insurance Agents: Avoiding Common Pitfalls and Assessing Risk Stephanie Solomon, Moderator CNA CNA Jeffrey Coyle AIG/National Union AIG/National Union John Gonzo Kaufman Dolowich Schneider Bianco & Voluck, LLP Kaufman Dolowich Schneider Bianco & Voluck, LLP Curtis Pearsall Utica National Insurance Group Utica National Insurance Group

The Panel Moderator: Stephanie Solomon, AVP CNA Global Specialty Lines Commercial Accounts ClaimsModerator: Stephanie Solomon, AVP CNA Global Specialty Lines Commercial Accounts Claims Jeffrey Coyle, VP AIG Financial Institutions/Directors & Officers ClaimsJeffrey Coyle, VP AIG Financial Institutions/Directors & Officers Claims John Gonzo, Partner, Kaufman Dolowich Bianco Schneider & Voluck LLPJohn Gonzo, Partner, Kaufman Dolowich Bianco Schneider & Voluck LLP Curtis M. Pearsall, VP and Director of Errors & Omissions Utica Mutual Insurance CompanyCurtis M. Pearsall, VP and Director of Errors & Omissions Utica Mutual Insurance Company

Spot the Trouble Signs Agent fails to timely mail the premium for an auto policy. Client is in a car accident and becomes a parapelegic. Agent summarily renews a client’s homeowner’s policy not increasing coverage to reflect the higher property values. Client suffers a fire and the home is destroyed.

Underwriting Perspective Review and Assessment of Agency  Structure/ Length of time in business  Types of coverages sold/ any specialty business  How do they sell it?  Do they do more than just sell?  Loss Control Assessment – proactive or reactive?  Expertise of staff/ Training/ Staff Development  Business Ethics/ Desire to do the right thing  Loss History

Claims Handling Notice issuesNotice issues  Timeliness  Circumstances that may give rise to a claim Policy ObligationsPolicy Obligations  Duty to cooperate  No admission of liability Duty to DefendDuty to Defend  Choice of counsel  “hammer clause” Retention/DeductibleRetention/Deductible

Troublesome Issues How underwriting effects claimsHow underwriting effects claims Lack of understanding by Agents as to E&O coverageLack of understanding by Agents as to E&O coverage

Definitions and Duties AgentAgent BrokerBroker “Special relationship”“Special relationship”

Things to do DOCUMENT You’re only as good as your file

Document What Client’s needs and wantsClient’s needs and wants ApplicationApplication  Answers to questions  Signatures Coverage available in the marketCoverage available in the market Coverages client declined or cannot be obtainedCoverages client declined or cannot be obtained

Hot Topics Katrina ClaimsKatrina Claims  Agents aware of the jurisdictions in which they write policies  Conflict between agent and insurance company Flood TrainingFlood Training eDiscoveryeDiscovery

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