Risky Business - The Mirror Test

THE MIRROR TEST

Does your client’s new policy match their old one?

There are a lot of changes going on in the insurance industry and oftentimes change also means emerging risk. If you have listened to any E&O webinars lately, there is a good chance you have heard of the “mirror test”. If you are not familiar with this term, then it is something to pay attention to no matter what line of business you work in. The reason we are talking about the “mirror test” is because the market is hardening. This change is causing agents to look for better pricing from new carriers to help their customer’s avoid premium increases. The risk? Well a new policy also means new terms and conditions. Does the insured still have the same limits and the same coverage options with their new carrier? It may not be a deal breaker if the coverage has some differences, but what is important is making sure the client is aware of these differences. The agent has a duty to provide the insured with information on these changes and should also have documentation of the customer’s acknowledgment that they understand these changes. As with any material conversation, a customer sign-off would be ideal but an email from the insured would still provide a good

defense if an E&O claim was made. If you have questions regarding your current workflow when a customer is moved to a new carrier – or your lack of workflow – feel free to reach out to the team at IIAW for support. There have been E&O claims arising from this issue in the past and we anticipate seeing more of them during this hardening market. An important value of an independent agent is having access to multiple carrier options. We need to make sure this value does not also come with an increased E&O exposure.

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IIAW Emerging Leaders Have the Christmas Spirit

December is here and the holiday season is So…do we just not do anything? No way! upon us. As we all try to make the most of this dumpster fire that is 2020, it likely does not feel Definitely not an option for this group of the same as year’s past. generous young professionals. Instead, there is a donation fund set up to raise money for But there is a special gift to be given this holiday the hospital’s Child Life Department Fund. The season and it comes from the IIAW Emerging fund is well on its way of exceeding its $1,000 Leaders Committee. Last year, the committee goal (follow the IIAW Facebook page for final came together and gave an assorted gift of donation amount!). The fund will be accepting toys, crafts and games to the American Family donations until December 9th and on December Children’s Hospital in Madison. These gifts were 10th will virtually present a check to Lori Schultz, distributed to patients receiving care from the the Development Program Coordinator for hospital during the holiday season. American Family Children’s Hospital.

If you or someone within your organization would like to donate or would like to join the fun on the IIAW Emerging Leaders Committee, please reach out to Mallory Cornell (mallory@iiaw.com).

The IIAW would like to send a huge THANK YOU to the Emerging Leaders committee and to everyone who has donated to fund for the American Family Children’s Hospital.

Photo: In 2019, the IIAW Emerging Leaders Committee donated toys, games and crafts to the children receiving care during the holiday season.

This year, because of the need to be especially cautious with the pandemic, the hospital cannot accept in-kind donations.

> Mallory Cornell,

IIAW Vice President and

Director of Risk Management