Group Errors & Omissions Program

Frequently Asked Questions

  • What is Claims Made & Reported Coverage?

    The policy provides coverage for claims that are made against the Named Insured and reported to Lancer Claims Services during the Certificate Period. The Wrongful Act must also have occurred on or after the agent's Retroactive Date in order for coverage to apply.
  • What is my Retroactive Date?

    Your retroactive date is the date on which you became continuously insured without interruption under any claims made insurance agent's 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.) Note, a break in continuous insurance (or gap) can cause claims to be denied.
  • What is the limit of liability?

    Each enrolled agent has an annual $1,000,000 per claim and $3,000,000 annual aggregate for all claims in a certificate period. These amounts include defense costs. Note: this is group policy with an annual aggregate limit of liability of $50,000,000 shared by all participants. If this limit were to be reached, there would be no payment for claims exceeding that amount. The policy aggregate is not applicable to agents in New York.
  • Does the policy cover claims expenses?

    Yes, defense costs are covered pursuant to the terms and conditions of the policy and subject to the limits stated above. Note, defense costs erode the limits.
  • Are refunds available?

    No, all amounts paid are fully earned. If you have any questions, please contact CalSurance.
  • What am I covered for?

    Please review the policy for complete terms, conditions and exclusions.

    This website is a summary of the coverage provided. All statements contained herein are subject to all terms, conditions, and exclusions of the actual policy. In all circumstances, the actual policy language will prevail.


  • The Insurer shall pay, on behalf of an Agent, Damages which an Agent becomes legally obligated to pay because of a Claim that is both made against an Agent and reported to the Insurer in writing during the Certificate Period, or as allowed by Section X – Notice Of Claim below, or during an Extended Reporting Period, if applicable, for a Wrongful Act or Interrelated Wrongful Act committed solely in the rendering of or failing to render Professional Services by an Agent
  • The Insurer shall have the right and duty to defend a Claim against an Insured seeking Damages that is covered by this Policy. The Insurer’s duty to defend any Claim shall cease upon exhaustion of the applicable Limit of Liability.
  • Coverage is on 'Claims Made & Reported' basis, which covers Claims first presented to an Insured Agent/Rep and reported to the Insurer during the Policy Period.
  • Coverage extends to an Insured Agent’s business entity but only with respect to the liability of the business entity related to the covered Professional Services provided by an Insured Agent.
  • Coverage extends to licensed & unlicensed administrative staff for their activities in support of an Insured Agent, as long as they work solely in that capacity and do not produce or sell insurance.
  • Coverage for Prior Acts is provided back to the date the Insured Agent maintained continuous Errors & Omissions insurance coverage. However, the policy excludes any Claim arising out of any Wrongful Act occurring prior to the inception date of the policy if the Insured knew or could have foreseen that such an act might be the basis of a Claim or suit. Evidence of continuous Errors & Omissions insurance is required at the time an actual Claim or incident is reported.
  • Claim Expenses are part of and not in addition to the applicable Limit of Liability, and the payment of Claim Expenses reduces such Limit of Liability.
  • Coverage extends to the sale and/or servicing of individual and group Life, Accident & Health, Disability and Long Term Care Insurance. Options are available to include coverage for Fixed/Indexed Annuities, Variable Products, Mutual Funds and P&C Products.


Agent or Managing Agent means an Insured person who:

  • Maintains an agent contract or an active affiliation with the Sponsoring Company;
  • Has elected to enroll for coverage under this Policy, either at the inception date of the Policy Period or prior to the expiration date of the Policy Period, and whose enrollment is on file with the Sponsoring Company;
  • Is shown as such in a Certificate Of Insurance;
  • Has paid the applicable premium;
  • Is licensed by all necessary federal, state or local governmental authorities to render Professional Services where both the Agent and client are located; and
  • Is properly registered as a representative of the Broker/Dealer with the Financial Industry Regulatory Authority (FINRA), if required for the rendering of Professional Services.
Certificate of Insurance
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
Certificate Period means the period of time from the inception date and time shown in the Certificate Of Insurance to the earlier of the expiration date and time shown in the Certificate Of Insurance or the effective date of the termination of this Policy.
Claim means a written demand received by an Insured for Damages (including pleadings received in a civil litigation or arbitration) because of an actual or alleged Wrongful Act.

A Claim does not include the following:
  • A demand for declaratory, injunctive or other non-monetary relief;
  • Any form of criminal proceeding; or
  • Any proceeding commenced by a governmental or quasi-governmental official or agency or any self-regulatory official or agency, including, but not limited to, any disciplinary proceedings by such official or agency, except if the agency or official is a client of the Insured in connection with the rendering of Professional Services.
Insured means:

  • An Agent shown as such in a Certificate Of Insurance;
  • A Managing Agent shown as such in a Certificate Of Insurance;
  • A corporation, partnership or other business entity owned by and in which an Agent or Managing Agent has an ownership interest, or in which an Agent or Managing Agent is an employee, but solely with respect to the liability of such organization as it arises out of an Agent or Managing Agent rendering of or failing to render Professional Services. Coverage hereunder shall not be afforded for any actual or alleged Wrongful Act of such organization, but shall only apply to a Claim arising out of the actual or alleged Wrongful Act of an Agent or Managing Agent.
  • A person acting on behalf of an Agent or Managing Agent, who was or is a partner, officer, director, stockholder or an employee of an Agent or Managing Agent, or the business entity of an Agent or Managing Agent, provided such person is not a party to an agent or general agent contract with any insurance company and only with respect to the Professional Services of an Agent or Managing Agent;
  • Heirs, executors, administrators or legal representatives of an Agent or Managing Agent, in the event of death, incapacity or bankruptcy.
Damages means monetary judgments, settlements or awards resulting from a Claim. Damages do not include the following:

  • Taxes, fines or penalties, unless incurred by a claimant and made part of a Claim against an Insured;
  • Punitive or exemplary damages;
  • The multiplied portion of a multiplied damage award;
  • The return, restitution, reduction, compromise or refund of commissions, fees or charges;
  • Costs incurred as a result of non-monetary, declaratory or injunctive relief;
  • Any matters that are deemed uninsurable under the law; and
  • Claim Expenses.
Limited Commercial
Limited Commercial means the following products: Commercial general liability insurance policies (CGL), Worker’s compensation or employer’s liability insurance policies, Directors and officers liability insurance policies, Employment practices liability insurance policies, Surety bonds, Professional liability insurance policies, Business owners package insurance policies, Commercial package insurance policies, Crime insurance policies, Umbrella insurance policies and Business interruption policies.
Policy Period
Policy Period means the period of time shown in Item 1 of the Master Policy Declarations.
Professional Services
Professional Services means the following if selected and purchased by the Named Insured and such coverage is reflected in the Certificate of Insurance and is on file with the Insurer as being selected and purchased:

  • The solicitation, sale or servicing of the following:
    1. Life insurance, accident and health insurance, managed health care organization contracts or disability income insurance (where such products do not require a security licensed); or
    2. Indexed or fixed annuities, (where such products do not require a securities licensed); or
    3. Variable insurance or mutual funds approved by the Insured’s Broker/Dealer that are registered with the Securities Exchange Commission and sold through a broker/dealer registered with the Financial Industry Regulatory Authority;
    4. The solicitation, sale or servicing of personal lines property and casualty insurance and Limited Commercial Lines Property and Casualty Insurance.
  • Rendering services as a notary public.
  • Financial planning, but only if performed directly in conjunction with the sale, solicitation or servicing of the products referenced in Paragraph P.1. above.
Retroactive Date
With respect to a Claim against an Agent arising out of or based upon the rendering of or failing to render any Professional Services defined in Paragraph P. of the definition of Professional Services above, the date of the Agent's first continuously renewed life insurance agents professional liability coverage, which was in effect without interruption from the date of the Wrongful Act or first Interrelated Wrongful Act related to the Claim to the date when the Claim is first made, subject to submission of proof of such coverage to the Insurer.
Wrongful Act
Wrongful Act means a negligent act or omission, including a Personal Injury Act, committed by an Insured in the rendering of or failing to render Professional Services to a client.