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Program Highlights

  • Two limits of liability:
    • $1,000,000 per claim/$1,000,000 annual aggregate
    • $1,000,000 per claim/$2,000,000 annual aggregate
  • Preferred risk underwriting
  • Pay in full or choose monthly payments via credit card or electronic funds transfer (EFT)
  • Prior acts coverage back to first date of continuous E&O coverage
  • Defense costs are provided and are included within the limits of liability
  • $500 deductible for life, accident, health, LTC, Medicare Advantage and Medicare Supplement
  • $2,500 deductible for disability insurance and indexed & fixed annuities
  • $5,000 deductible for all other claims (eg. variable annuities and mutual funds)
  • Coverage available for life, accident and health, disability income activities as well as mutual funds, variable products, universal life, annuities and section 125, employee benefit plans, managed health care organizations
  • Provides coverage for your administrative, clerical and support personnel while they are acting on your behalf
  • Provides coverage for any contracted corporation, partnership or agency for their liability arising out of the individual insured’s professional services

Program Eligibility

  • You must be actively contracted with Annuity Advisors at the time you submit a claim under this policy in order to be eligible for full benefits
  • If you are no longer contracted with Annuity Advisors during the policy period, coverage for any new business activities ceases immediately as of your termination date. You will be covered under a one year Automatic Extended Reporting Period beginning on the date of termination and terminating twelve months thereafter. The Extended Reporting Period applies to Wrongful Acts (I) committed after your Prior Acts date (II) committed before your termination date (III) solely relating to Annuity Advisors products, all subject to the terms of the policy
  • Coverage under this program is offered on a claims made basis. The policy will only cover claims first made against the Insured and reported to the Corporation during the policy period. The agent must not have had knowledge of the claim or circumstances likely to result in a claim at the effective date of coverage.
  • This policy applies to an act, error or omission which takes place anywhere in the world, provided that the claim is made and suit is brought against the Insured in the United States of America.

Your E&O Exposure

  • Make the simple statement to a client, “I will make sure that your claim is paid immediately”, binding the insurance carrier even though the claim may be denied for any number of legal reasons.
  • Instead of calling policy owner service, your client calls you to change his address. Mistakenly, you forget to forward this request to the home office. Four months later, your client files a claim only to find out that his policy has been canceled for non-payment.
  • While filling out an application for coverage, your client asks if a minor medical condition warrants being mentioned. You inform the client that it should not be an issue and the client does not include the information on the application. Nine months later benefits are denied because of misrepresentation by the client on the application.
In all of these simple examples you could be held liable for client damages costing you thousands of dollars in legal fees and settlement costs.

Top Causes of Loss

  • Misrepresentation of coverage under health policy
  • Waiting period for STD benefits
  • Availability of coverage for pre-existing condition
  • Discrepancies in application process for life and health policies
  • Guaranteed Coverage (client allegedly led to believe that coverage guaranteed if application process completed)
  • Delay in application process (claim made before coverage bound)
  • Alleged coverage sold through self-funded program or MEWA (not covered by policy)
  • Misrepresentation of benefits or policy provisions on a disability income policy
Limits Single Pay Down Payment Monthly Payment
Life, Accident, Health, LTC, including Medicare Advantage and Medicare Supplements
$1M / $1M $495.00 $135.87 $40.83
$1M / $2M $520.00 $137.92 $42.92
Life, Accident, Health, LTC, including Medicare Advantage and Medicare Supplements, PLUS Fixed Annuities and Indexed Annuities
$1M / $1M $600.00 $149.17 $49.17
$1M / $2M $635.00 $152.12 $52.08
Life, Accident, Health, LTC, including Medicare Advantage and Medicare Supplements, PLUS Fixed and Indexed Annuities, Mutual Funds & Variable Products
$1M / $1M $720.00 $177.50 $57.50
$1M / $2M $760.00 $180.87 $60.83
ENROLLERS COVERAGE ONLY: Coverage for professional enrollers from claims arising from the enrollment of group benefits and/or life & health products in the worksite marketing environment.
$1M / $1M $325.00 $112.50 $27.50
Down payment refers to monthly payment option. Prices include E&O premium and $125.00 MGA administrative, taxes and marketing fees. Down payments will be processed immediately; monthly deductions as shown above will begin the third business day of the month after enrollment effective date. Monthly payment options includes a $7.50 / monthly collection fee.

Disability and 24-Hour Care are not included in pricing but can be added during enrollement.

Apply Online!

Program Administrator

MGA Insurance Services
For complete policy details please visit the the MGA website. For comments or questions or regarding this E&O program, please call a MGA Insurance Services Representative.

Toll-Free: (877) 524-0265
Hours of Operation:
Monday – Thursday: 8 am to 6 pm ET.
Friday: 8 am to 5 pm ET.

Program Underwriter

CNA Insurance Company
40 Wall Street, New York, NY 10005