Frequently Asked Questions


Definitions

Agent or General Agent, whether used separately or together, means
  1. a natural person:
    1. who has met the criteria contained in the application for coverage;
    2. has paid the applicable premium; and
    3. whose enrollment is on file with the Named Insured.
  2. any
    1. corporation, partnership, or other business entity owned or controlled by such natural person referred to in 1. of this definition, but solely with respect to the liability of such entity as it arises out of the rendering of or failing to render Professional Services by an Insured Agent or General Agent, as defined in 1. of this definition.
    2. natural person who is a life insurance producer for any insurance company provided such natural person also qualifies under paragraph 1. of this definition.
Certificate of Insurance means the document issued by us to the Named Insured during the Policy Period pursuant to this policy, which evidences the coverage terms, limits, premium and endorsements applicable to the Insureds under this policy.
Certificate Period means with respect to the Named Insured the period of time between the inception date shown on the Certificate of Insurance and the effective date of termination, expiration or cancellation of the Certificate of Insurance issued to the Named Insured.
Claim means:
  1. a written demand against the Insured for monetary damages, including a written demand that the Insured toll or waive a statute of limitations; or
  2. a civil adjudicatory or arbitration proceeding against the Insured for monetary damages commenced by the service of a complaint or similar pleading;
brought by or on behalf of or for the benefit of any Client for a Wrongful Act in rendering or failing to render Professional Services, including any appeal therefrom.
Client means a natural person for whom, or entity for which, Professional Services are rendered by an InsuredInsured. Client does not include any Insurance Company, Insurance Agent or Broker/Dealer.
Insured means, with respect to coverage afforded by a Certificate of Insurance:
  1. the Named Insured listed in such Certificate of Insurance;
  2. any corporation, partnership, or other business entity owned or controlled by such Named Insured, solely with respect to the liability of such entity as it arises out of the rendering of or failing to render Professional Services by such Named Insured;
  3. An Agent, General Agent or Registered Representative of the Named Insured.
  4. any natural person who is a former or current secretarial, clerical or administrative employee of the Agent, General Agent or Registered Representative but solely for services performed within his or her capacity as such and on behalf of such Named Insured or entity, provided such natural person did not receive any commission income pursuant to an Agent, broker or Registered Representative contract with any insurance company or Borker/Dealer as a result of providing Professional Services offered by the Named Insured or such entity.
Loss means the total amount the Insureds become legally obligated to pay on account of covered Claims made against them, including, but not limited to, damages, judgments, settlements, Claim Expenses, or any award of pre-judgment and post-judgment interest with respect to covered damages. Loss does not include any of the following:
  1. any amount for which the Insured is not financially liable or is absolved from payment by reason of any covenant, agreement or court order;
  2. taxes, fines or penalties imposed by law;
  3. any amount incurred by the Insured to comply with injunctive or other equitable relief or any agreement to provide such relief;
  4. punitive damages, exemplary damages or the multiple portion of multiplied damages; or
  5. matters uninsurable under the law pursuant to which this policy is construed.
Named Insured means the Agent or General Agent, or Registered Representative named in this policy’s respective Certificate of Insurance and any other person or entity included within the definitions of Agent or General Agent or Registered Representative as applicable.
Policy Period means the period of time shown in Item 1 of the Master Policy Declarations..
Professional Services means:
  1. with respect to an Agent or General Agent, to the extent they are provided in the course and scope of such Agent or General Agent’s business as an Agent or General Agent and such Agent or General Agent has the appropriate license in both the Client’s resident state or jurisdiction and the state or jurisdiction in which the business is conducted:
    1. the sale, attempted sale or servicing of life insurance, accident and health insurance or managed health care organization contracts (that does not require a securities license);
    2. the sale, attempted sale or servicing of disability income insurance (if purchased as indicated on the Certificate of Insurance);
    3. the sale, attempted sale or servicing of indexed/fixed annuities, (if purchased as indicated on the Certificate of Insurance);
    4. services as a Notary Public;
    5. financial planning activities in conjunction with services described in paragraphs (a) through (d) (if purchased) of this definition, whether or not a separate fee is charged; and
    6. the supervision, management and training of an Agent by a General Agent with respect to activities otherwise covered by this Policy.
  2. with respect to Registered Representative and only to the extent Professional Services are provided in the course and scope of such Registered Representative’s business as a Registered Representative and such Registered Representative has the appropriate license in both the Client’s resident state or jurisdiction and the state or jurisdiction in which the business is conducted:
    1. the sale, attempted sale or servicing of variable annuities, variable insurance (that requires a securities license) or mutual funds, (if purchased) that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer that is a member of the Financial Industry Regulatory Authority;
    2. financial planning activities in conjunction with services described in paragraph (a) (if purchased) of this definition, whether or not a separate fee is charged.
Retired or Disabled whether used separately or together, means:
  1. Retired or Disabled in conformance with the written practices and procedures of the Named Insured or Broker/Dealer which are in effect at the inception of the Policy Period; and
  2. no longer providing Professional Services on behalf of the Broker/Dealer or any other insurance company or Broker/Dealer.
Retroactive Date means the date, as shown in this policy’s respective Certificate of Insurance, in which the Insured became continuously Insured without interruption under any claims made professional liability policy (subject to written proof of such coverage at the time the Insured gives written notice to us of a Claim under this Master Policy.)
The Named Insured and any Insured who is a former or current secretarial, clerical or administrative employee of such Named Insured shall share the same Retroactive Date.
Wrongful Act means any negligent act, error or omission of, or Personal Injury caused by, the Insureds in their capacity as such in the rendering or failure to render Professional Services.