This plan is designed exclusively for agents and agencies of Illinois Mutual and helps to protect against claims arising from the sale and servicing of insurance products.

Basic agent coverage starts at just $114.92 down and $42.92 a month or a one time payment of $527.00.

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AGENT Plan Highlights

  • NEW LOWER RATES FOR 2014. Rate reduction for 2nd year in a row!
  • Coverage for the sale and servicing of all Life and Health products with no carrier rating restrictions
  • Coverage for claim damages related to the insolvency of a carrier with a B+ rating or higher at time of placement of the insurance product sold.
  • Covers individual agent and administrative support
  • Prior Acts to the first date of continuous E&O
  • Monthly payment options available
  • Limited underwriting

E&O Liability Coverage Options

  • $1M per claim; $1M annual

 Deductibles

  • $500 for Illinois Mutual products
  • $2,500 for outside products

Payment Options

  • Pay in full or choose monthly payments via credit card or electronic funds transfer (EFT)

AGENCY Plan Highlights

  • Covers entity & employed Producers
  • 1099 sub-producers are NOT covered under the agency policy
  • Coverage for the sale and servicing of Illinois Mutual products
  • Coverage for the sale and servicing of L&H products, fixed and indexed annuities, with optional coverage for mutual funds and variable products
  • Prior Acts to the first date of continuous E&O
  • Additional limits may be available
  • Monthly payment options available
  • Limited underwriting

E&O Liability Coverage Options

  • $1M per claim; $1M annual

 Deductibles

  • $500 for Illinois Mutual products
  • $2,500 for outside products

Payment Options

  • Pay in full or choose monthly payments via credit card or electronic funds transfer (EFT)

Rates

Rates


Monthly payment options for AGENT include a $5.00 per month processing fee.

Monthly payment options for AGENCY include a $15.00 per month processing fee.

Net Agency Income: Based on your agency's net commissions and fee income from all carriers for the previous 12 months; that is, commissions retained by your agency after payment of commissions to individual sub-producers writing on behalf of your agency.

 

Underwriter



MGA Insurance Services has made sure that your E&O Insurance Coverage is secured by an outstanding insurance company. Scottsdale Insurance Company is rated A excellent by AM Best.

Scottsdale Insurance Company

8877 N. Gainey Center Drive
Scottsdale, AZ 85258

Toll Free: 800.423.7675
Main Number: 480.365.4000
Fax: 480.483.6752

Administrator

MGA

Client sponsors can depend on MGA Insurance Services to provide their agents with the most comprehensive and cost effective coverage available. MGA prides itself on superior customer service and welcomes your participation in this outstanding E&O Insurance Program.

MGA Insurance Services

8430 Enterprise Circle, Suite 200
Lakewood Ranch, FL 34202
Toll-free: 877.524.0265
Fax: 800.411.4771

California State License #0B44869, Louis E. Marinaccio

FAQs



Can I apply for Errors & Omissions over the phone?

No. You can apply on our website only but may call us @ (877) 524-0265 for questions concerning the application process.

How long does it take for my application to be processed?

Typically takes 1 to 2 business days assuming the application is complete and properly filled out.

Does my Errors & Omissions policy cover P&C or Series 7 activities?

No.

How do I get my Errors & Omissions Certificate?

A certificate is available for download immediately following completion of the application. You can also use the MGA Express Customer Service Center to retrieve your certificate.

Can I cancel my policy?

Yes.  Insurance premiums paid in advance will be refunded on a prorata basis.  Please note that coverage is written on a claims made policy.  Coverage must be in force or an extended reporting period in place at the time of claim for the policy to respond. See "what is a claims made policy?" for more details.   

How do I change my payment or contact information?

Use the MGA Express Customer Service Center.

Who is eligible for the program?

Any licensed agent who is included on the active roster maintained by the sponsor while there is in effect an appointment or contract.

Does coverage extend to employees, sub-agents?

Coverage is extended to the insured agent's clerical and/or administrative employee who is acting on behalf of the insured agent but NOT as an agent, sub-agent, broker or sub-broker who is licensed to sell life and accident & health insurance.

What happens if the agent passes away?

The estate is covered under the active policy and is eligible for the Extended Reporting period available under the policy.

When does my coverage become effective?

If you are already licensed and contracted with the sponsor, your coverage is effective on the first of the month following receipt of your enrollment form and payment.  If you are in the process of licensing with a sponsor please select an effective date at least 30 days from the date of completing your enrollment form.

If I am a general agent, does coverage extend to my agents?

No, each licensed agent must have his or her own policy.

What activities are covered?

Any negligent act, error or omission by the insured or any person for whose acts the insured is legally liable, arising out of the conduct of the business of the insured in rendering services for others as a licensed life, accident and health insurance agent, licensed life, accident and health insurance general agent, licensed life, accident and health insurance broker or Series 6 registered representative as respects claims first made against the insured and reported to the Corporation during the policy period. The policy will cover the sale and servicing of all life, accident and health insurance products and Mutual funds and variable product sales depending on the purchased coverage option. Coverage also extends to life, accident & health insurance products placed with carriers outside of sponsor.

What are the Policy Limits of Liability and what does it mean?

The first amount indicates the limit of liability each claim is subject to, the second amount indicates an annual aggregate during each agent's policy period. The limits of liability are shared with those individuals to whom coverage is also extended under the policy.   The total policy liability limit of $10,000,000 is the carriers' limit of all damages to be paid on a policy year.

What are the deductibles and how will they be applied?

The deductible applies towards payment of loss per claim arising from the sale of insurance products covered under the policy.  Life, Accident, Health, LTC, Medicare advantage & Medicare supplement products have a deductible of $500.  Disability, fixed and indexed annuities have a $2,500 deductible, and all other claims have a deductible of $5,000 (i.e. variable annuities and mutual funds). 

Is my partnership, corporation or agency covered?

Yes, the corporation, partnership or agency under which the insured is doing business or is employed is covered, but only in respects  to such corporation's, partnership's or agency's liability as it might arise out of the individual insured's activities specified as covered in the policy.

Would I be covered for the sale of Life, Accident and Health Insurance products through insurance companies other than the sponsored company?

Yes. Life, Accident & health insurance products placed with carriers outside of the sponsor are covered. 

What is a claims made 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 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 his/her coverage.  This plan offers prior acts coverage beginning with your original date of continuous E&O coverage.  The plan also offers a one year automatic extended reporting period beginning on the policy termination date.  See the Policy for more details.

Am I covered for the sale of mutual funds and variable products?

Yes, if the coverage option is purchased, but only for the sale and servicing of these products through a NASD-registered broker/dealer.

Does the suit have to be filed in United States?

Yes. 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, its territories or possessions and the District of Columbia, Puerto Rico or Canada.

What if there is more than one policy involved in the dispute?

If the Insured has other insurance against the loss covered by this policy, this policy shall be excess over any other valid and collectible insurance and shall then apply only in the amount by which the applicable limit of liability of this policy exceeds the sum of the applicable limit of liability of all such other insurance. This provision will not apply if the Insured has similar coverage with the same carrier or one of its affiliates. In this event only one limit of liability shall be available to the Insured, and such limit shall be the greater of the available limits irrespective of under which policy such limit is provided.

Don't lose your prior acts coverage!

Set your FREE E&O renewal reminder

It is extremely important that you understand the crucial need to avoid "gaps" of any kind in your E&O coverage. If you allow any gap to occur, even a gap of 1 day, between one policy's expiration and the next policy's effective date, you could lose years of prior acts protection.

You should know...


As an insurance sales agent, your E&O insurance coverage could be your most important investment. Protecting yourself from the expense of a potential lawsuit or legal action is critical.

Experience the MGA difference!


  • A-rated carrier
    This policy is underwritten by Scottsdale Insurance Company: an outstanding insurance company rated A (Excellent) by AM Best.
  • Monthly payment options
    Pay in full or choose monthly payments via credit card or electronic funds transfer (EFT).
  • Easy online application
    No long paper applications. Online enrollment takes just minutes!
  • Very affordable!
    This policy offers coverage at the most competitive rates available.


If you need assistance, please call (877) 524-0265.

© 2014 MGA Insurance Services.

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