In the March issue of The E&O Report, we briefly wrote about the topics to be covered at the upcoming IIABNY annual E&O seminars. As usual, my partner, Chris Weldon, and I will present the seminars in May and early June as live half-day sessions at five locations across New York state. The live seminars are scheduled the mornings of May 12 in Buffalo, May 13 in Syracuse, June 2 on Long Island, June 3 in New York City and June 4 in Westchester County. On June 10, Chris and I will lead the same four-hour seminar live from Hudson Valley Community College in Troy, where it will be simulcast to 14 locations across the state. Since the March publication of The E&O Report, a number of agents and brokers have contacted us requesting more information about the topics we’ll cover during the seminars. Accordingly, in this issue of The E&O Report, we provide additional details concerning the topics we’ll cover, along with other information related to the seminars.
The first topic involves a review of the New York State laws affecting property/casualty and life and health insurance agents and brokers. Chris and I will discuss several recent New York court cases every New York insurance agent or broker should be familiar. And, we’ll examine the various insurance laws and regulations affecting New York agents and brokers in the daily conduct of their business. Under review will be changes to some state insurance laws.
Secondly, we’ll cover the duty of care for insurance agents and brokers in New York and a few other states. We’ll review the definition of the duty of care, along with key New York court cases that define the duties and obligations of insurance agents and brokers. In addition to reviewing New York law, we will discuss the duties and obligations in other states where New York agents and brokers frequently conduct business. In connection with this topic, we will also delve into the type of conduct that can result in a court finding the existence of a special relationship that holds an agent or broker to a higher standard of care.
The next topic Chris and I will cover is a review of the statistics and exposures concerning trends in New York errors and omissions claims and lawsuits. We will review data that relate to the types of transactions and policies that most often result in E&O claims and lawsuits involving New York insurance agents and brokers. And, we’ll look at who most often file claims against agents and brokers and who at the agency or brokerage is usually involved.
The fourth area we’ll examine features the various stages of the customer lifecycle. Chris and I plan to start the discussion by reviewing the information-gathering process from a customer, then we’ll work our way through the risk exposure analysis, application process, binding of coverage, servicing of policies, issuance of certificates of insurance and making policy changes. Finally, we’ll review the handling of customer claims. Throughout this review of the customer lifecycle, we will highlight the best practices and procedures that should be followed by agencies and brokerages in order to protect against E&O claims and lawsuits. In addition to helping protect against E&O claims and lawsuits, many of the practices we’ll discuss have the added benefits of providing better customer service and helping an agency or brokerage sell more insurance.
The fifth area we’ll cover during the seminar will focus on the importance of documentation to protect against an E&O claim or lawsuit. Chris and I will start by addressing the key elements that should be contained in any documentation. In addition to discussing traditional forms of documentation (such as written notes and agency management system), we will review other forms of documentation an agency or brokerage might use. They include email, faxes, voice mail and text messages. Additionally, the use and admissibility of electronic signatures and the best practices agencies and brokerages should follow when imaging and scanning documents will also be reviewed.
Finally, Chris and I will cover some of the most common defenses we use in defending against E&O claims and lawsuits. In connection with this subject, we will discuss defenses, such as satisfying an agent or broker’s legal obligations to the customer; a customer’s duty to read his or her insurance policy; types or limits of coverage complained about but were not available; and how we often work to find that the does somehow exist under the subject insurance policy. It is important for agents and brokers to understand the potential defenses that may be available to defend an E&O claim or lawsuit since many aspects of the daily conduct of an agent or broker can affect whether these various defenses are available and can be asserted if an a claim or lawsuit arises.
We encourage everyone to register and attend one of the upcoming E&O loss control seminars. You can register for either one of the live or telecast seminars by visiting the Education section of the IIABNY website at www.IIABNY.org or calling the IIABNY Education Department at (800) 851-8853, ext. 228. We look forward to seeing you at the 2015 annual E&O seminars.
Submitted by:
James C. Keidel, Esq.
Keidel, Weldon & Cunningham, LLP