NAPA Errrors and Omissions Insurance Since 1989

NAPA Direct Life & Health Agent Errors and Omissions Insurance

NAPA Direct Errors & Omissions Insurance for life & health insurance agents offers errors and omissions coverage at truly affordable rates. Choose from three liability coverage levels and optional property & casualty coverages.

NEW!

New Reduced Rates & Policy Enhancements Effective 2/4/2014!

Coverage
Option
Provides Coverage for the Sale & Servicing of: Newly Licensed Agent* Experienced Agent
A Life, accident, health, LTC, disability, including Medicare Advantage & Medicare Supplements, employee benefit administration $374 $469
B Life, accident, health, LTC, disability, including Medicare Advantage and Medicare Supplements, employee benefit administration PLUS Fixed & Indexed Annuities $456 $551
C Life, accident, health, LTC, disability, including Medicare Advantage and Medicare Supplements, employee benefit administration PLUS Fixed & Indexed Annuities, Mutual Funds & Variable Products $607 $674

Add Incidental P&C Coverage or Limited Commercial P&C Coverage for additional premium.

View policy prior to 2/4/2014.

*To be eligible for newly licensed agent pricing, you must apply within two years of receiving your first original issued insurance agent license and have commission income of less than $100,000 for the 12 months prior to enrolling.

Pricing shown is for experienced agents earning less than $250,000 and Newly Licensed Agents earning less than $100,000 in gross annual commissions with a coverage limit of $1,000,000 per "claim"/$1,000,000 annual aggregate.

Coverage Liability Limits:

Income Tier:

Additional Coverage:

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Experienced Agent Rates

Experienced Agent Pricing includes $42 NAPA membership dues and a $45 administration fee. Newly Licensed Agent Pricing includes $42 NAPA membership dues and a $40 administration fee. Down payment refers to monthly payment option. Your down payment includes one month's premium, NAPA dues, administrative fees and a $5.00 monthly processing fee. Down payments will be processed immediately; monthly deductions as shown above will begin the first of the month after enrollment effective date. Policy is subject to minimum earned premium equal to one month of premium. Administrative fees, dues and minimum earned premium are non-refundable.

Plan Highlights

  • This E&O Program is PPACA compliant
  • This policy provides coverage for claims that arise from the sale and servicing of self-funded group health plans. Multiple employer trust or welfare arrangement are not covered and insolvency claims are excluded except for carriers with an A- rating at time of sale.
  • Policy includes $25,000 of indemnity and $25,000 of defense cost coverage for claims arising from the negligent violation of a client's privacy including identity theft protection at no additional cost. Each loss subject to a $250,000 total policy aggregate. See policy for details.

Liability Coverage Limit Options

  • $1,000,000 per "claim" / $1,000,000 annual aggregate
  • $1,000,000 per "claim" / $2,000,000 annual aggregate
  • $1,000,000 per "claim" / $3,000,000 annual aggregate (experienced agents only)
  • $2,000,000 per "claim" / $2,000,000 annual aggregate (experienced agents only)

Disappearing Deductible/Retention

  • First two years in the program: $1,000 retention for claims arising from fixed life, health, accident, disability insurance, and fixed and indexed annuities
  • After two years of continuous coverage in the program: retention decreases to $500.00
  • After five years of continuous coverage in the program: retention decreases to $0.00
  • $5,000 for all other covered claims (e.g. variable products and mutual funds)

Payment Options

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

Continental Casualty Company

Your coverage is secured by Continental Casualty Company, a member company of CNA Financial and is rated A (Excellent) by AM Best. This policy is exclusively designed for NAPA Members.

Copyright © Continental Casualty Company.

www.cna.com

Incidental Property & Casualty Coverage for Personal Lines*

  • Newly Licensed Agents add $345.00
  • <250k revenue tier add $370.00
  • 250K -499k revenue tier add $750.00
  • 500k-999k revenue tier add $1,600.00

Covers ONLY the following products placed with admitted Property & Casualty carriers with an AM Best Rating no lower than A- :

  • Homeowners
  • Auto (personal watercraft, RV, motorcycle)
  • Personal Umbrellas
  • Flood*
  • Renters
  • Pet Insurance

Excluded products include, but are not limited to:

  • Professional Liability
  • Medical Malpractice
  • Directors & Officers
  • Commercial General Liability
  • Commercial Property
  • Products Liability
  • Workers Compensation

* Coverage for claims arising out of flood insurance will require that such insurance be offered, such offer be documented and if rejected, such rejection by the insured documented. The agent must also comply with his/her state regulations/requirements involving flood insurance.

Coverage Sub Limits of Liability

  • $100,000 per "claim" / $250,000 annual agent aggregate for claims arising from flood insurance
  • $1M per "claim" / $1M annual agent aggregate for all other covered claims

Deductible/Retention

  • $5,000 per covered claim
  • $20,000 per claimant for any claim involving or in any way related to flood insurance

P&C sub-limit is $1M per "claim" / $1M aggregate. The P&C coverage included in this plan is designed to be incidental to the agents overall book of Life & Health business. Life & Health agents who also have a P&C license are eligible for this coverage ONLY if their total P&C revenues do not exceed 25% of their gross annual commission & fees.

Limited Property & Casualty Coverage Endorsement – Personal Lines and Commercial Lines

  • <250k revenue tier add $575.00

Eligibility

  • Annual Commission Income under $250,000
  • Annual commission income from sale & servicing of P&C lines must be less than 50% of total annual income

Covers ONLY the following products placed with admitted Property & Casualty carriers with an AM Best Rating no lower than A- :

Covered Personal Lines:

  • Homeowners
  • Auto (personal watercraft, RV, motorcycle)
  • Personal Umbrellas
  • Flood
  • Renters
  • Pet Insurance
  • Flood*

Covered Commercial Lines:

  • Workers Comp and Employer Liability
  • General Liability
  • Product Liability
  • Commercial Multi peril
  • Business Owners Policy
  • Commercial Automobile
  • Commercial Property
  • Flood*

Excluded products include, but are not limited to:

  • Professional Liability
  • Medical Malpractice
  • Directors & Officers
  • Employment Practices Liability
  • Ocean Marine
  • Aircraft
  • Inland Marine
  • Fidelity
  • Surety
  • Boiler & Machinery
  • Kidnap & Ransom
  • Reinsurance
  • International Insurance
  • Crop/Hail
  • Wind
  • Earthquake
  • Pollution
  • Any policies placed in captives, risk retention groups or purchasing groups
  • Loss Control & Risk Management Services
  • Class-Action Lawsuits

* Coverage for claims arising out of flood insurance will require that such insurance be offered, such offer be documented and if rejected, such rejection by the insured documented. The agent must also comply with his/her state regulations/requirements involving flood insurance.

Coverage Sub Limits of Liability

  • $100,000 per "claim" / $250,000 annual agent aggregate for claims arising from flood insurance
  • $1M per "claim" / $1M annual agent aggregate for all other covered claims

Deductible/Retention

  • $20,000 per claimant for any claim involving or in any way related to flood insurance
  • $7,500 for all other covered claims

Agency E&O Insurance

Our Agency Insurance Specialists can provide you with a detailed E&O Insurance Quote for your agency.

This entity coverage is designed for:

  • Agencies that write L&H and P&C
  • Agencies with multiple employed producers or for GAs, IMOs and wholesalers

Additional Information:

PPACA Compliance

PPACA presents new changes and challenges for insurance agents. These changes will evolve over time, and how an E&O policy responds to these changes is critical. It's important to understand the following information regarding your NAPA Direct E&O Program and PPACA:

The NAPA Direct E&O program protects insured agents for activities relating to the sale and advice of all covered insurance products and services, including health insurance sold in compliance with PPACA.

  • This includes coverage for the insured agent with respect to claims by clients arising out of the insured's general advice with respect to health reform legislation, including claims by clients for civil fines or penalties payable by the client as a result of agent negligence.
  • Coverage is not dependent upon whether the agent is paid a commission or a fee; both are covered.  The policy also covers consulting on covered products by a properly licensed agent.
  • Coverage is not dependent upon whether covered products are being sold inside or outside of an Exchange; both are covered.

All claims are subject to the specific circumstances of that claim and are subject to the full terms and conditions of the policy.

PPACA Best Practice:

With Healthcare reform, the tax implications of health insurance have become increasingly complicated. It is best practice to inform your clients to seek tax advice from a tax advisor. Since documentation is key to preventing an E&O claim, NAPA recommends adding the following tag line to all of your client communications:

Please note: We provide general information and resources for taxation questions applicable to health care reform. We do not provide tax advice since we are not a certified public accountant. If you have any questions, need clarification or tax advice, please contact your tax advisor."

NAPA Direct E&O Program Enhancements

  • Rate reduction!
  • Now underwritten by an admitted "A" rated carrier, Continental Casualty Company
  • Policy form and coverage designed by CNA exclusively for NAPA Members
  • Insolvency coverage on products sold from A.M. Best rated "A-" or better carriers at time of sale
  • Increased policy aggregate to $50M*
  • Additional coverage limit option

*Policy aggregate limit of liability is not applicable to those agents and registered representatives who are residents of or practice in New York State.

New coverages*

  • Regulatory Coverage
  • Social Media
  • Data Breach and Privacy
  • Military Deployment Gap Coverage
  • Sub-limits may apply on these coverages.

Still your expert in Agent E&O and Association Benefits

  • 25 years of E&O and agent association experience

*See policy for complete coverage terms and conditions. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all provinces and may be subject to change without notice. CNA is a registered trademark of CNA Financial Corporation. Copyright © Continental Casualty Company. All rights reserved.

Apply for E&O Now!
Apply online in less than 10 minutes for NAPA Direct E&O Insurance.

Upon successful completion of this application, a certificate of insurance will be available for immediate download for eligible agents.


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