A car driven by Charles struck Julia's garbage truck. Julia was injured and sued Charles and also his father and his father's insurance company. She also sought to recover from her employer's commercial auto uninsured motorists coverage.

The employer's commercial auto carrier declined the loss because the named insured rejected uninsured motorists coverage in writing. Julia argued that the rejection was not valid because the rejection form for the year when the accident occurred was signed but not dated.

Click here to see if the courts agreed.

Common sense and common law do not always seem to work together. The injured party in this case believed that finding a tiny flaw in a required procedure would be sufficient for her to gain access to significant policy limits. However, a judicial doctrine known as the Doctrine of Reasonable Expectations helps rein in those hopes. As more states adopt this approach, the insurance industry and claimants can expect outcomes in line with the coverage purchased.

Click here to review the PF&M discussion of the Doctrine of Reasonable Expectations.

Click here to review a case where the Oklahoma Supreme Court adopted the Doctrine of Reasonable Expectations.

When a loss occurs, what may seem reasonable to the insurance company may be totally unreasonable to the claimant. Both sides look to the insurance agent to confirm their definition of reasonable. What can an insurance agent do to bring these two different opinions together?

Click here to read an article from The Rough Notes Magazine on how to avoid E&O claims while still providing excellent customer service.

Do you have a methodical approach you use to review your customers' insurance portfolios? If not, consider the numerous changes that have occurred in the economy in the past three years and the impact they may have had on each of your clients. Now might be the perfect time to treat a group of customers as though they are new prospects in order to uncover gaps in coverage. Prospecting your current clients could save you an E&O claim. It may also increase your revenue when you provide the needed insurance coverage to fill the gaps in coverage you identified.

Click here to review a letter you could send that offers to provide a survey of existing conditions.