Risky Business - Commissions and Insurable Interest & Season's Greetings from IIAW Emerging Leaders

Reducing exposures for direct commission payments

Can I get a ‘woohoo’ for talking about E&O exposures? If the commission is going directly to the agent, is there E&O Hello? agency?

Anyone out there?

Just me, huh?

That’s ok, I’m not offended. I know there are a couple of you out there because I’ve had some great E&O exposure questions come in the past few months. The scenario below came in more than once so that’s my cue to make sure I share it with the greater audience – just in case you don’t want to call and ask.

Scenario: A licensed agent is writing life insurance on behalf of the agency but receives 100% commission and the commission check is sent directly to the agent. coverage for that agent since its not funneling through the Sound familiar? It might and so should the term “insurable interest”. That is what your E&O carrier would need to show in order to cover any E&O issues that may arise between the agent and this customer.

E&O Coverage Tip: All company contracts should show the agency, not just the agent. Furthermore, business written between agents and costumers must be on behalf of the agency for that agent to be covered under the agency’s E&O policy.

If you have a question about E&O coverage feel free to give us a call. Its likely you’re not the only person who is wondering and E&O risk might be more fun to talk about than you think.

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Season’s Greetings from IIAW Emerging Leaders

Selfless. Gracious. Caring. Thoughtful. Kind.

These are words that describe two groups that I am so proud of: the IIAW Emerging Leaders Committee and the doctors and staff at the American Family Children’s Hospital.

Many of our members graciously contributed to the Emerging Leaders fundraising drive to raise in-kind donations for the Child Life Department Fund at the American Family Children’s Hospital. With an initial goal of $500, it quickly became clear that this was going to bigger. How much bigger? Over 10 times bigger! The final donation was $5,725 presented to Lori Schultz, Fund Development Program Coordinator, on December 10th, 2020. The Child Life Department fund is fulfilled only through donations and provides items for the brave patients and families receiving care at the American Family Children’s Hospital. This can include everything from toys for the holidays (we hear they LOVE Legos right now!) as well as gas cards and meal vouchers for those families needing to make frequent trips to the hospital for treatments.

The Emerging Leaders committee is proud to support the work of the doctors and staff at the Children’s Hospital and is already making postCOVID plans to volunteer. On behalf of the committee and the IIAW staff, I want to say thank you to all of those who supported this effort.

A special thank you to Safelite.AutoGlass, IMT and Robertson Ryan & Associates for their gracious gifts to support this fund.

Mallory Cornell (right) of the IIAW Emerging Leaders present Lori Schultz (left), Fund Development Coordinator with the Child Life Department Fund a $5,725 donation.

> Mallory Cornell,

IIAW Vice President and

Director of Risk Management