E&O Prevention
Strategies for the Professional Agent
August 25, 2016 

AOA News, Views, Tips & More
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AgentsofAmerica.ORG  mission is " Bringing the Best Together" we are committed to selecting and delivering highest level of content dealing with both topical issues and subject matter, including offering products, information and services that will not only save you time but also create more revenue opportunities. We are an organization dedicated to the personal and professional growth of insurance agents.  The key to your success and "Avoiding E&O Claims" is understanding what is important to you and more importantly understanding protecting and enhancing your three most important assets: Agency Reputation, Client Base, and Staff

Thru our partnership, alliances and affiliations with the industry leading experts and providers, AOA has become one of the nation's leading resources for connecting agents with industry professionals, highly relevant news, agency revenue building products, risk management & loss prevention services, career opportunities and continuing education.  For more tips, news, views and resources for your insurance agency, visit   Agents of America  and subscribe to our newsletter.
Simplifying Fraud Analytics: 10 Steps to Detect and Prevent Insurance Fraud

Insurance fraud has existed wherever insurance policies are written, taking different forms to suit the economic times. Today the magnitude of insurance fraud is not only startling but increasing. 
Recent studies by the US National Insurance Crime Bureau (NICB) reported a 24 percent rise in questionable claims for the period 2011 to 2013. The full scale of insurance fraud is not known. 
And if fraudulent behavior is not discovered at the time the claim is submitted, the insurer may never know it occurred. Consequently, an uninvestigated claim can't be labeled as fraudulent to investigate. 
Phishing Field Guide: How to Keep Your Users Off the Hook 

Every day, cyber criminals send out millions of phishing emails. They are designed to steal W-2s, access sensitive account information, and spread malware, including ransomware. And every day, 1 in 5 users who receive one of those emails will open it and click.

With the Phishing Field Guide you'll find out how to keep your users safe - by learning how to see them from a phisher's perspective. Understand why they're being targeted, what makes them susceptible, and what types of tricks they're falling for. Then get better at teaching them how to stop taking the bait .    CLICK HERE

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Lawsuit Alleging Broker's Negligence Demonstrates Insurance Brokers' Role In The Cyber Insurance Marketplace
By Todd M. Rowe, Esq. of Tressler LLP 

While there is little authority concerning a brokers' potential liability when a policyholder claims it received inadequate insurance coverage under a cyber policy, one case currently pending in federal court in Louisiana could provide some insight. The Hotel Monteleone originally filed a declaratory action on December 10, 2015 in the District Court of Orleans Parish, Louisiana, alleging it was entitled to coverage under an Ascent CyberPro Policy for damages related to a breach at the Hotel in 2014.  Read More

Wave of Shootings Puts Workplace Violence Back in the Spotlight
By James L. Curtis, Esq. and Craig B. Simonsen, Esq, of Seyfarth Shaw LLP

DHS's recommendations for active shooter prevention and preparedness is only one piece of an effective workplace violence prevention program. Employers should assess their workplaces and develop comprehensive workplace violence prevention programs and training.  Read More
Succession: The Tie That Binds
By Renée Montoya Lado of Family Owned Business Resources

Effective succession planning is the tie that binds the family business for multi-generational success. Succession is concerned with passing control of the family business from one leader to another (for example, a founding parent to a child in the business). This issue presents itself most urgently when a founder/leader begins to consider exiting the business, whether for retirement or for health or other reasons.  Read More

On July 27, 2016, the United States District Court for South Carolina ordered an insurer to turn over its privileged communications. The Court explained that the insurer waived the protections afforded under the attorney-client privilege and work product doctrine by asserting it acted in good faith in the defense of its insured.   Read More
Get Your Pokémon Off My Lawn!
By John B. Fraher, Esq. of Gordon Rees Scully Mansukhani, LLP

Pokémon Go has quickly become a global phenomenon, but no one seems to be asking, "is placing virtual creatures on the property of others legal?".  Read More

By Bart W. Huffman, Esq., Alan D. Meneghetti, Esq., Mark E. Schreiber. Esq., and Thomas J. Smedinghoff, Esq. of Locke Lord LLP

Beginning on August 1, 2016, U.S. companies have a new way to legally facilitate the transfer of personal data from the European Union to the U.S. Known as the EU-U.S. Privacy Shield, this new agreement between the EU and the U.S. was approved by the European Commission on July 12, 2016. It will facilitate the storage, sharing, retention and use of EU personal data by participating U.S. companies.  Read More

Mobile Apps − Has the Marketplace Downloaded Potential Product Liability Risk?
By Sara J. Papasidero, Esq. of Wilson Elser

For many consumers, it is hard to remember performing a daily routine without using a mobile application. App usage starts almost immediately − with a morning alarm that wakes you up slowly or with a coffee waiting for you at your favorite coffee shop. Consumers are making purchases, reading the news, transferring money, diagnosing a migraine and playing interactive videogames, all without lifting their heads from their smartphones.  Read More

No Estoppel Where Express Reservation of Rights Letters Were Provided to Policyholders
By Thomas Paschos, Esq. of Thomas Paschos & Associates, P.C. 

In Nationwide Prop. & Cas. Ins. Co. v. Shearer, 2016 U.S. App. LEXIS 9635 (3d Cir. (Pa.) 2016), Randy and Erin Shearer sued a group of homeowners, claiming that the owners permitted sewage to leak onto the Shearer's property. Nationwide agreed to provide a defense under a reservation of rights.  Read More

Plaintiff Who Could Not Afford to Pay for Arbitration Was Allowed to Pursue Her Malpractice Action in Court
By Linda L. Streeter, Esq. of Hinshaw & Culbertson LLP
A former client who had agreed to arbitrate disputes with her lawyers, but ultimately could not afford to pay the fees of arbitration, was allowed to proceed with her action in federal court after the arbitration was terminated for nonpayment. The Federal Arbitration Act (FAA) requires federal courts to stay an action subject to a valid arbitration agreement until the arbitration process has been completed.  Read More

Letter From  the Publisher
Protecting Your Reputation

As every Insurance Agent knows, their most important asset is their reputation, it takes years to build and just one mistake to ruin. Understanding the issues is the first steps in avoiding E&
O Claims. AOA has created a three book series dealing with 56 different E&O topics and issues agents face every day. Enter promo code
WPD20 at checkout for an additional 20% discount.
Book One - 
A Comprehensive Guide To Avoiding E & O Claims
Book Two - 
E&O Exposures in the Sales Process

Book Three - 
E & O Exposures By Line of Business
Demotech, Inc.
Since 1985, Demotech, Inc. has served the insurance industry by assigning accurate, reliable and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurers and Title underwriters. FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer.  You can search the most current FSRs Here Also check out their new videos Consumer Reference on Insurer Financial Analysis and Thoughts on Insurer Financial Analysis
Announcing Cyber Insurance News

Cyber Insurance News is the industry's new meeting place for cyber insurance professionals.  It is a leading resource for Cyber Insurance and Security for cyber risk news and information. A meeting place for insurers, insurance producers, defense counsel, and security consultants to meet and be able to share their products, company information and use as a medium to engage their clients. For more information  CLICK HERE

Crittenden Inside Insurance Report
Crittenden's Inside Insurance Report offers readers vital analysis of commercial insurance including the excess and surplus, medical professional liability, and main street markets. This report provides readers with in-depth, behind-the-scene information on specific programs and segments, pertinent financial information, and predictions of market trends and carriers' actions. Inside Insurance is an invaluable resource for producers who want details on which carriers are actively writing coverage, their target markets and underwriting details. With our service you can effortlessly build leads and relationship while remaining abreast of the market and the competition. For additional information  CLICK HERE  or call (800) 421-3483

Do You Need Continuing Education?
Complete your entire  State-Required CE Online with WebCE!   AOA has partnered with WebCE, a leading nationwide provider of Continuing Education for insurance professionals to provide you with state-approved self-study CE courses to satisfy your CE requirements online!  Check out your  CE State Requirements.  

Is Your Insurance License Renewing Soon?
Is your agency licensed in multiple states? Does your agency maintain nonresident licenses? Do you know when renewals are due? Did you know a resident change requires address changes in the states in which an individual holds licenses? If you need assistance with any of your licensing needs go to the experts Supportive Insurance Services.

This edition reflects all of the pertinent changes in the surplus lines laws and regulations of the 50 states and U.S. territories during the past year. We sincerely trust you will find this manual to be a valuable desk reference and if you have any questions regarding the contents, please contact John P. Dearie, Jr., Esq. Editor and Partner at Locke Lord LLP at  jack.dearie@lockelord.com  or (212) 912-2737

Ernst & Young
The 2016 Sensor Data Survey "Disrupt or be disrupted"
Ernst & Young surveyed senior executives from nearly 400 insurers around the globe, the survey addressed both current practices and plans for tomorrow. The results make clear that forward-looking and top-performing insurance organizations are already innovating with telematics, wearable technology and sensor data, though not to the extent of leaders from other sectors. Why is sensor data so important to insurers in particular? On the strategic front, it presents a clear and compelling opportunity to reengineer the fundamental value proposition through transformative product innovation to benefit customers and shareholders. CLICK HERE  

Regulatory Top Regulatory Trends For 2016 In Insurance 
This publication is part of the Deloitte Center for Regulatory Strategies cross-industry series on the year's top regulatory trends. This annual series provides a forward look at some of the regulatory issues we anticipate will have a significant impact on the market and our clients businesses in the year ahead. CLICK HERE

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Angelo J Gioia

"Any fool can criticize, condemn and complain -- and most fools do. But it takes character and self-control to be understanding and forgiving." Dale Carnegie, Writer, Lecturer and Leadership Consultant 

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