Errors & Omissions Insurance Coverage Highlights

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Error & Omissions Insurance Coverage Highlights for Participating Agents and Registered Representatives of the Agent Program.

For more information see the American Independent Marketing E&O Policy

Policy Period  2023 - 2024
Insurer Continental Casualty Company  (a/an Admitted  carrier rated A XV  by A. M. Best), a member of the CNA Insurance Companies.
Policy Limits
(Applicable to Defense Costs & Damages)
Options available are:

$1,000,000 each claim and agent Aggregate
$10,000,000 Policy Aggregate
or
$2,000,000 each claim and agent Aggregate
$10,000,000 Policy Aggregate
Retention 
(Applicable to Defense Costs & Damages)
$500 applies to an Agent/Rep named in a claim involving other products sponsored by AIM . 

$2,500 applies to an Agent/Rep named in a claim involving all other products. 

$5,000 applies if the $2MM limit of liability options are chosen to an Agent/Rep named in a claim involving all variable or mutual funds. 
Eligibility/Enrollment Agents/Reps who are contracted with AIM are qualified to enroll in this program for Errors & Omissions Insurance.
Agent/Rep Termination In the event that your agent contract with AIM is terminated, a mini-extended reporting period ("tail") will be provided until the end of the policy period to cover your professional services prior to your termination date with AIM. All coverage automatically ceases for terminated agents/reps at the conclusion of the policy period and there will be no return premium. If you retire or become disabled you would be entitled to an automatic One Year (1) Extended Reporting Period Endorsement ("tail" coverage) – see below for policy provisions.
Extended Reporting Period (“tail” coverage)

If an Agent/Rep retires or becomes disabled the following policy provisions will apply:

A. If, during the Policy Period, an Agent or General Agent or Registered Representative ceases their status as such with the Policyholder, such Agent or General Agent or Registered Representative shall be entitled to an automatic extension of this Policy for one year beginning on his or her date of termination and terminating 12 months thereafter at no additional charge ("Automatic Extended Reporting Period"), but only with respect to a Claim made during such Automatic Extended Reporting Period arising out of a Wrongful Act which was: (i) committed after the applicable Prior Acts Date; (ii) committed before his or her termination date; and (iii) which is a Wrongful Act that is otherwise covered under the terms and conditions of this Policy.

B.  If an Agent or General Agent or Registered Representative is non-renewed for coverage due to not satisfying Eligibility Requirements then such Agent or General Agent or Registered Representative shall be entitled to an automatic extension of this Policy for ninety (90) days beginning on his or her date of termination and terminating ninety (90) days thereafter at no additional charge, but only with respect to a Claim made during such Automatic Extended Reporting Period arising out of a Wrongful Act which was: (i) committed after the applicable Prior Acts Date; (ii) committed before his or her termination date; and (iii) which is a Wrongful Act that is otherwise covered under the terms and conditions of this Policy.

C.  An Agent or General Agent or Registered Representative shall not be entitled to such Automatic Extended Reporting Period if he or she is currently enrolled in any broker, dealer, life agent, registered representative, registered investment adviser, financial planning or professional liability policy, other than this Policy, whether or not that policy actually affords coverage for the Claim in question.

D.  An Agent or General Agent or Registered Representative shall not be entitled to such Automatic Extended Reporting Period if the Policyholder terminated its relationship with such Agent, General Agent or Registered Representative for disciplinary reasons.

E.  The Automatic Extended Reporting Period does not create a separate or additional Limit of Liability or Policy Aggregate Limit of Liability.

Coverage

I. Coverage is on 'Claims Made & Reported' basis, which covers claims first presented to an Insured Agent/Rep and reported to the Insurer during the policy period.

II. Coverage extends to an Insured Agent/Rep business entity but only with respect to those operations of the business entity related to the covered Professional Services provided by an Insured Agent/Rep.

III. Coverage extends to licensed & unlicensed administrative staff for their activities in support of an Insured Agent/Rep, as long as they work solely in that capacity and do not produce or sell insurance.

IV. Coverage for Prior Acts is provided back to the date the Insured Agent/Rep maintained continuous Errors & Omissions insurance coverage. However, the policy excludes any claim arising out of any Wrongful Act occurring prior to the inception date of the policy if the Insured knew or could have foreseen that such an act might be the basis of a claim or suit. Evidence of continuous Errors & Omissions insurance is required at the time an actual claim or incident is reported.

V. Coverage extends to the sale and/or servicing of individual and group Life, Accident & Health, Disability, Long Term Care Insurance, Employee Benefits Plans and Individual and Group Retirement Plans. Options are available to include coverage for Variable Products and Mutual Funds.

For more information see the AIM E&O Program FAQs

To request a Certificate of Insurance please go to: Certificate Request 

Arthur J. Gallagher Risk Management Services, LLC
18201 Von Karman Ave
Suite 200
Irvine, CA 92612

This outline provides general information on your Errors and Omissions Insurance Program. It is not intended to interpret the terms of the policy or to be legal advice, but rather summarizes our understanding of the coverage provided. It is not a part of the policy, nor does it modify or serve as a conclusive statement of its terms.

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