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!

NAPA Direct Base Coverage Options

Coverage
Option
Provides Coverage for the Sale & Servicing of: Newly Licensed*

$1M/$1M
Experienced


$1M/$3M
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

View all NAPA E&O Programs
Rep & Warranties
State Policy Endorsements
Policy prior to 10/1/14
Policy 10/1/14 - 3/31/15
Policy 4/1/15 - 2/1/15

*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 in gross annual commissions with a coverage limit of $1,000,000 per "claim"/$3,000,000 annual aggregate.

Pricing shown is for 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.

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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 ACA 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.
  • 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.

Liability Coverage Limit Options

  • 1,000,000 per "claim" / $1,000,000 annual aggregate (Newly Licensed Agents Only)
  • 1,000,000 per "claim" / $3,000,000 annual aggregate
  • 2,000,000 per "claim" / $2,000,000 annual aggregate

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). Monthly payments are processed the first business day of each month.

ACA Compliance

ACA 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 ACA:

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 ACA.

  • This includes coverage for the insured agent with respect to claims by clients arising out the sale, attempted sale, and servicing 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.

ACA 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."

Not all E&O Policies are created equal!

With NAPA Direct You Get:

  • Monthly payment options
  • A policy aggregate of $50,000,000*
  • $1M/$3M coverage for the price of $1M/$1M
    • NAPA has secured a higher aggregate limit of liability for our preferred certificate holders which will meet the recent increased aggregate limit requirements for many insurance companies. This savings is being offered to you, as a preferred certificate holder of NAPA as our way of thanking you for your support. Please note this excludes product options that include P&C Coverage.
  • Painless automatic renewal
    • NAPA Direct now auto-renews for Life & Health Agents! As a busy insurance agent, you have a lot on your plate. With NAPA’s new auto renew feature, there's no need to complete an application every year. We’ll send you a renewal notice and if you still meet the eligibility requirements, you don’t have to do anything. We’ll automatically renew your policy using the payment information we have on file. It’s that easy!
  • Available in all 50 states and U.S. territories
  • Coverage through CNA, an admitted "A" rated carrier
  • Insolvency coverage on products sold from A.M. Best rated "A-" or better carriers at time of sale
  • Disappearing Deductible/Retention
  • Peace of mind knowing you've got NAPA's more than 25 years of E&O expertise on your side

Coverage for:**

  • Regulatory Defense
  • Social Media
  • Data Breach and Privacy
  • Military Deployment Gap

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

One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. 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 states and may be subject to change without notice. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2014 CNA. 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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