General Information

Plan Cost Structure

1. Insurance is provided by a claims made and reported policy form, which requires the claim be made during the policy term and arise from a wrongful act occurring after the insured’s retroactive date. Your retroactive date is the date you first purchased E&O insurance for the wrongful act leading to the claim, as long as you continuously maintained such coverage.
2. Coverage is limited to claims arising from your negligence, errors and omissions, involving your acts as a life insurance agent, selling and servicing policies allowed by your license. Two options are offered:

   Option 1 – Coverage is limited to the sale and servicing of fixed life, accident and health, disability and long term care insurance.

   Option 2 – Coverage is limited to the sale and servicing of fixed life, accident and health, disability and long term care insurance, and fixed annuities (including index annuities).

3. There is no coverage for the sale or servicing of variable life insurance, variable annuities, and mutual funds. There is no coverage for services provided as a financial planner, registered representative selling securities, investment advisor managing money, real estate agent, third-party administrator, or other profession.
4. Various exclusions apply to the coverage for life insurance agents. For example, there is no coverage for fraud or the theft of money. There is no coverage for the sale of viaticals or life settlements.  A full list of the exclusions can be found in the sample E&O policy.

Insureds

Yourself
The company, for its vicarious liability arising out of your wrongful acts
Your non-licensed employees for their services in supporting your life insurance business

Policy

You will be insured on a master policy with other FEG agents for a 12-month period, no matter when you join the program. You will have the opportunity to renew your coverage when the term expires, as long as you continue to qualify.

Limits of Liability

$1,000,000 per wrongful act
$1,000,000 annual aggregate per insured agent
$5,000,000 annual policy aggregate. This limit will be increased as the number of insureds increases.

Retention

Retention is the amount you will pay for defense and indemnity before Scottsdale Insurance Company pays on your claim.

The retentions vary by the products sold:

$500 for claims only involving FEG Insurance Services products
$2,500 for claims involving fixed insurance product, other than FEG Insurance Services product
$5,000 for claims involving annuities

Carrier

Scottsdale Insurance Company, one of the insurance companies within the Scottsdale group.  It is the second largest domestic surplus lines group in the United States and is rated A+ XV by  A. M. Best. It is a subsidiary of the Nationwide Group.

Program Administrator

The Financial Services Professional Liability Purchasing Group Inc. managed by ProSurance Group, a managing general agency contracted with the Scottsdale Insurance Company, acts as the program administrator.  ProSurance Group worked with FEG Insurance Services to design an E&O program to meet the needs of FEG Insurance Group’s agents.  ProSurance Group can be contacted at

ProSurance Group
5050 El Camino Real, Suite 300
Los Altos, CA 94022
(650) 428-0818
(800) 310-4486
FEGProgram@prosurancegroup.com

Hours of Operation
Monday – Friday
8:00 a.m. –  5:00 p.m. PST 

Additional information can be obtained by clicking the FAQ tab or this sample policy.

The coverages described above are merely summaries of the actual policy terms and should not be construed as replacing or modifying the actual policy.