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Licensed Marketing Assistant
This insurance policy may only be purchased from Marsh Canada, a licensed insurance broker.
Errors and Omissions
Liability Insurance for Financial Planners whom are not Life, Accident &
Sickness and/ or Mutual Fund Licensed
Item
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Description
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Employers Reinsurance
Corporation - ERC, Policy
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“Claims Made” Policy
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Professional Liability policies are written on a claims made
basis. This means the Policy covers claims actually brought against an Agent
during the policy term, irrespective of when the error or omission took
place.
It is vital to ensure
that all claims or incidents which may give rise to a claim (i.e. become
known by the Agent because of a complaint — written or oral — by the client
or discovery by the Agent of the error) are reported to the insurer during the Policy Period.
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Policy is written on a “Claims Made” form
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Insured Services
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Insured Services are those professional services that are afforded
coverage under a Professional Liability policy.
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Provides coverage for
rendering services as a “licensed Life Insurance, Accident and Sickness and/
or licensed/registered Mutual Fund Agent/ representative”.
Provides coverage as noted
above but for Licensed Marketing Assistants (LMAs) who are salaried, have no
personal sales and receive no commission income: AND must be employed by an
Insured Agent/Agency currently enrolled in the program.
LMAs must purchase their own Certificate of Insurance for a reduced
annual premium of $360 for a limit of $1M per claim and $2M annual aggregate. Only one limit is available for the LMAs.
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Personal Income Tax Preparation
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Professional Liability
policies can provide coverage for Personal Tax Preparation as it generally
forms part of the professional services of the Named Insured.
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Coverage may be purchased
by endorsement for an additional flat premium of $75.
Provides coverage for the
Named Insured / Personal Income Tax Preparer, but only when using software
approved by the CRA and shall only apply to individuals filing a T1 General
Return.
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Prior Acts Provision
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This is a very important feature to look for when purchasing
Professional Liability coverage. NOTE: It is important to maintain continuous
E&O liability insurance.
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Prior Acts covered.
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Limits of Liability
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Limits of Liability are chosen by the Insured at the inception of
the policy.
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Following liability limits are available:
$1M Per Claim/ $2M
Annual Aggregate
Or $2M per Claim/ $2M
Annual Aggregate
(higher Aggregate limits
where Regulations require same)
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Deductible
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The deductible varies for
Professional Liability policies. The maximum life product deductible in some
jurisdictions is $1,000.
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$1,000 deductible option
which applies to damage only.
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Defense and Settlement
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Professional Liability
programs can provide defense costs either within the Limit of Liability or as
an extra dollar amount.
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Provides an additional
limit of liability for defence costs, up to the limit of liability purchased.
Should this limit be
exhausted, further defence expenses would reduce the amount available to pay
a claim.
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Extended Claim Reporting
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Any Professional
Liability policy should have a provision to allow an insured to purchase
coverage to allow for the reporting of claims after the termination of the
policy.
The extension should
apply to all claims made in the future that have their origin prior to the
termination date of the policy.
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Provides the option of
this Extended Reporting Period for RETIRING, DECEASED, or DISABLED Agents,
however there is an additional premium
charge (except with respect to Manitoba Regulations, which are met).
Options range from 1 to
10 years
Flat Premium – Last
annual
3 years 150%
4 years 175%
5 years 200%
10 years 300%
Termination or Cancellation
- 1 year ERP is available for
most Agents @ 75% of last annual premium
For more details contact your Marsh Canada representative.
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Territory
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Defines
where cover applies or where suits must be filed
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Provides
world wide coverage as long as the claim is made and suit is brought in Canada or the United States of America*.
* If
you have US licenses, you must make arrangements to purchase a separate
policy in the US. The intention of this policy is to provide
coverage for Canadian professional services.
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Named Insured’s
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Named Insured’s are those
individuals who are afforded coverage under a Professional Liability policy.
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Policy covers:
1. The
Named Insured (Policy Holder)
2. Administrative
assistant employees for whose acts the insured advisor is responsible.
3. Any heir,
executor, administrator, assignee or legal representative of the Insured in
the event of the Insured’s death, incapacity or bankruptcy.
4. The agency,
including a corporation or partnership under which the Insured is doing
business or is employed but only as respects such corporation’s or
partnership’s liability as it might arise directly out of the Insured’s
activities.
5. In Quebec: trainee agents
or said agents, and representative agents.
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Cancellation
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Many
Professional Liability policies contain a short rate cancellation clause
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Policy
contains the standard short rate cancellation provision.
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Summary of
Policy Exclusions
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Assumed liability under
contract or agreement except liability applicable in the absence of same.
§
Bodily injury or property
damage
·
Unauthorized access/
destruction of documents/machine or system failure/data processing
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Dishonesty or fraud/ personal
advantage
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Economic return-market
fluctuations
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Employment related claim or
suit
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Fines, penalties, sanctions,
taxes, punitive or exemplary damages
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Insolvency or bankruptcy
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Insurance company or mutual
fund insolvency
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Unauthorized use of trade
secretes or confidential, proprietary information or insider trading
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Activities as a third party
administrator of any plan
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Claims arising out of non
discloser of commission or fees
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Interest rate representations
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Prior knowledge situations
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Claims or suits by an insurance
products provider
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Claims by an affiliate
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Claims for services other than
the named professional services
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Collection of payments
respecting insurance premiums
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Personal injury
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Pollution
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Provision of unlicensed
services
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Real estate investment
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Securities except as respects
specifically covered securities (i.e. mutual funds)
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Erisa, pension and related
statutes or any obligation as a fiduciary trustee with respect to any pension
plan
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Willful violation of statute
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Income tax preparation and
advice except advice rendered as part of an insured professional service. Coverage can be purchased by endorsement for
an additional flat annual premium.
§
Subject to all the terms,
conditions and exclusions of the ERC policy for the members of The Canadian Institute of Financial Planners E&O insurance
program.
Subject
to the terms, conditions and exclusions of the CIFPs Agents’ E&O Insurance
policy wording with Employers Reinsurance Corporation (ERC).
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