Producer Online In Action

Volume 64

	An insurance carrier argues that ACMAT's proof was insufficient in this court case review
	A comparison of an occurrence coverage form and a claims–made coverage form that includes examples of how each triggers coverage.
	A letter you could send or deliver with any newly issued policy
	A customer service article from Rough Notes magazine that describes actual errors and omissions cases and the documentation that helped (and the lack of documentation that hurt)

There are a number of new classifications that have been added to the Producer's Commercial Lines Risk Evaluation System.

Cell Phone and Other Personal Communication Device Stores

Concession Stands

Musicians

Antique Dealers

Costume Shops

Flea Markets

Tuxedo/Formal Wear Stores

Air Ambulances

Army and Navy Surplus Stores

Construction Equipment Manufacturing

Ship Chandlers

Trophy Stores

Suggestions?
Have you found what you need in Producer OnLine? Is there a classification to add to the Producer's Commercial Lines Risk Evaluation System or a subject you would like to see covered in PF&M? Contact us with your suggestions.

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Show us the policy!
ACMAT installs acoustical tiles in commercial buildings. It has been the target of numerous lawsuits since 1988 for asbestos-related injuries that date back to the 1950’s. ACMAT knew it had coverage but verifying it was difficult. ACMAT discovered a certificate of insurance from Greater New York Mutual Insurance Company and some letters and other documents that it believed was sufficient to prove that there was coverage from January 1, 1964 to January 1, 1968. The insurance carrier argued that the ACMAT’s proof was insufficient. Click here to see how the court viewed the offered proof of coverage.

Why should a 1964 policy respond to a 2005 action?
CG 00 01–Commercial General Liability Coverage Form covers on an occurrence basis. This means that the date of the bodily injury or physical damage occurrence determines which policy responds, regardless of when the claim is presented. A person exposed to asbestos may not be aware of an injury until an asbestos exposure lung condition (such as mesothelioma) manifests. Click here to review a comparison of an occurrence coverage form and a claims–made coverage form that includes examples of how each triggers coverage.

Where do your clients keep their policies?
Do your clients know their policy number(s)? Can they produce an actual policy if needed? Have you documented that you actually delivered a policy or that you notified the client that a policy would be delivered? You are not a client’s policy archive but you might have to verify that your agency sent a policy to a client. Click here for a letter you could send or deliver with any newly issued policy.

Documentation
Some insurance clients may turn on their agents when policies can’t be found, insurance limits are inadequate, or coverage is excluded. Those kind and frugal clients who listened carefully but refused to purchase the coverage they needed may suddenly develop faulty memories when a claim occurs. The individual client may even become incapacitated and be unable to corroborate your conversations when their relatives seek damages on his or her behalf. These are the times that insurance agents’ error and omissions claims may be filed. How would you prove your side of the story? Click here to review a customer service article from Rough Notes magazine that describes actual errors and omissions cases and the documentation that helped (and the lack of documentation that hurt).