Agency Errors and Omissions – ACSR 4 – Part 1
This course is part of the ACSR (Accredited Customer Service Representative) national designation.
Educational Objectives:
Explain the purpose of transferring potential errors and omissions agency losses by means of an insurance policy.
Identify the legal sources for the agent’s authority in transacting insurance business.
Describe the major regulations at the federal level that have an impact on agency operations.
Explain the purpose for state regulations on an agency’s operations under the following:
• Licensing of agents
• Unfair trade practices
• Unfair claim settlement practices
• Handling of premiums
• Selecting proper insurers
Prepare and present client proposals and quotes that comply with appropriate standards to minimize agency
errors and omissions.
Place new business by completing the application with the insurer submission that properly fulfills the client’s
insurance requirements.
Deliver the client the policy that is verified to be correct and in compliance with the client’s requirements.
CE Outline:
I. Transferring Agency Errors and Omissions (E&O) Losses
A.
B.
C.
Defining Errors and Omissions
Agent E&O Policy Overview
1.
Insuring Agreement and Coverage
2.
Limits and Defense Costs
3.
Exclusions
Agent E&O Policy Considerations
1.
The Deductible
2.
Consent to Settle
II. Agency Law
A.
B.
C.
15 minutes
Defining Agency Law
Sellers of Insurance Products
1.
Agent
2.
Broker
3.
Producer
Legal Sources for Agent Authority
1.
Express Authority
2.
Implied Authority
3.
Apparent Authority
III. Federal Regulations That Have an Impact on the Agency
A.
B.
15 minutes
Insurance Regulation at the Federal Level
Federal Regulations That Have an Impact on the Agency
1.
Federal Emergency Management Agency (FEMA)
2.
Department of Transportation (DOT)
15 minutes
3.
4.
5.
6.
7.
8.
9.
Drivers Privacy Protection Act (DPPA)
Fair Credit Reporting Act (FCRA)
Gramm-Leach-Bliley Act (GLB)
Sarbanes-Oxley Act
CAN-SPAM Act
Telemarketing and Consumer Fraud and Abuse Prevention Act
Telephone Consumer Protection Act (TCPA)
IV. Application of States’ Regulations and Unfair Trade Practices Statutes
A.
B.
C.
D.
E.
V. Presenting Proposals and Quotes to Minimize Agency Errors and Omissions (E&O)
A.
B.
C.
D.
B.
C.
15 minutes
Application
Insurer Placement
Binder
Premium Financing
VII. Effectively Delivering the Policy to the Client
A.
15 minutes
Account Reviews
Preparing the Proposal or Quote
Coverage Options and Quotes
Advising of Preconditions to Obtain Coverage
VI. Placing the Business Once the Proposal or Quote Has Been Accepted
A.
B.
C.
D.
15 minutes
Licensing Laws
Unfair Trade Practices Acts
Unfair Claims Settlement Practices Acts
Handling Premium Payments
Selecting Proper Insurers
Verify That the Policy Matches the Proposal, Application, and Binder
1.
Names, Locations, and Amounts
2.
Coverages, Endorsements, Exclusions, and Conditions
Deliver the Policy
Client Review
10 minutes