Frequently Asked Questions

  1. Who is the Insurer?
  2. Who is the sponsor of the Group Life Insurance Agents' Errors & Omissions Liability Policy?
  3. Who is covered?
  4. What Professional Services are covered?
  5. What is your Limit of Liability?
  6. What is your deductible?
  7. What are some of the important conditions on policy coverage?
  8. What happens if my Agent's contract is terminated with OneAmerica during the policy period?

1. Who is the Insurer?

Zurich American Insurance Company, (hereinafter referred to as “Zurich”) has an A.M. Best rating of "A+" as of November 2013.

2. Who is the sponsor of the Group Life Insurance Agents' Errors & Omissions Liability Policy?

OneAmerica Financial Partners Inc..

3. Who is covered?

Agents

You, the agent of OneAmerica, provided you have enrolled in the program and paid the appropriate premium.

Your Corporation

Any corporation, partnership, or other business entity, which engages in Professional Services and which is owned or controlled by you would be covered. Coverage, however, only applies to those operations of the business entity directly related to the professional services covered herein and provided by you.

Your Employees

Any person acting on your behalf who was or is your employee or your business entity or a partner, officer, director, or stockholder of your business entity provided such person is not a party to a contract with any other insurance company, and then only with respect to Professional Services provide by you.

Your Heirs

Your heirs, executors, administrators or legal representatives are covered in the event of your death, incapacity or bankruptcy.  

Important Note: Employees and Corporations do not have their own limits; they share the coverage afforded to the Agent.

4. What Professional Services are Covered?

You are covered for the sale or servicing of:

a.    Life insurance, accident and health insurance, workers compensation insurance as part of a 24-hour accident and health insurance product, disability income insurance, long term care insurance and fixed annuities.

b.    Single employer/employee benefit plans funded with the products listed above;

c.    Financial Planning in conjunction with conjunction with covered products.

d.    Variable life insurance and variable annuities;

e.    Mutual funds, registered with the SEC;

f.    Requires Tier II – for which you must elect and pay an additional premium. Securities, registered with the SEC, and Atlas LP offerings sold through OneAmerica Securities, Inc.

g.    Investment advice provided to a client pursuant to a written contract with the client defining the scope of such services and the Investment Advisor is an Associated Person of OneAmerica’s corporate RIA and in compliance with the corporate RIA agreement;

h.    The supervision and training by a General Agent over the conduct of any Insured.

5. What is your Limit of Liability?

During the enrollment period, you had five (5) limits of liability options, listed below, to choose from.  Depending on the limit option you chose, you will have a per Claim limit for each Wrongful Act or Interrelated Wrongful Act resulting in a claim, which is the total amount of Damages and Defense Costs that Zurich will pay.  The Aggregate is the most Zurich will pay on your behalf during the Policy Period.

Option Per Claim Aggregate Each Agent
Option 1 $1,000,000 $2,000,000
Option 2 $2,000,000 $2,000,000
Option 3 $2,000,000 $4,000,000
Option 4 $3,000,000 $3,000,000
Option 5 $3,000,000 $5,000,000









6. What is your deductible*?


$500 - Each Claim/Each Agent on products of American United Life Insurance Company, State Life Insurance Company, Pioneer Mutual Life Insurance Company, Provident Life and Accident Insurance Company, Illinois Mutual Insurance Company, Educators Mutual Life Insurance Company, Indianapolis Life Insurance Company, Principal Life Insurance Company, Golden Rule Financial Services, Union Central Life Insurance Company and Assurity Life Insurance Company.

$2,500 - Each Claim/Each Agent on all other covered products.

 * The deductible applies to Damages and Defense costs

7. What are some of the important conditions on policy coverage?

Claims Made and Reported
Coverage is on a "Claims Made and Reported" basis, which covers claims first made against you and reported in writing to Zurich during the policy period.
    
Defense Obligations
The Insurer has a right and duty to defend and settle any claim made against you within the terms of the policy.  If a claim alleges dishonest, fraudulent or malicious acts, a defense will be provided until the allegations are subsequently proven by a final adjudication.  In such event, Zurich has the right to seek reimbursement for Defense Costs.
    
Please remember that your coverage under the policy could be jeopardized if you admit liability, agree to any settlement or incur any expense without the prior consent of Zurich.
    
Defense costs are included in the Limits of Liability.
    
Prior Acts Coverage
You are covered for claims arising out of Wrongful Acts which occurred on, or after, your Retroactive/Prior Acts Date.  Your Retroactive date is the date you first became continuously insured, without any interruption, under any Agents Claims Made Errors and Omissions Professional Liability Policy.  

8. What happens if my Agent's contract is terminated with OneAmerica during the policy period?

If your contract is terminated during the policy period, coverage automatically ceases on the date your contract terminates.

However, an Automatic Extended Reporting Period (ERP) of One (1) year is provided at no cost to you.  This will cover claims first made and reported during the ERP arising out of acts, errors or omissions that occurred on or after your Retroactive Date and prior to the termination date of your contract with OneAmerica.  The Automatic ERP applies solely to claims involving products provided by American United Life Insurance Company, State Life Insurance Company, Pioneer Mutual Life, and OneAmerica. 

No ERP under this E&O Program is available if you have other applicable insurance.

Termination due to Retirement or Disability
   
In the event of retirement, disability, or death (i.e., you are no longer rendering Professional Services as an Agent or Rep), you will be entitled to a Conditional Automatic ERP of unlimited duration. This Conditional Unlimited ERP is free and applies unless you have other applicable E&O insurance, or the E&O Plan is underwritten in the future by an insurer other than Zurich.

Those who terminate their contract due to retirement or disability may also elect to purchase personal tail coverage called an Optional Extended Reporting Period, which is not conditioned on Zurich being the insurer that underwrites this E&O Plan in the future:

  • A three (3) year Extended Reporting Period is available for an additional premium charge of 200% of the annual premium. 
  • A five (5) year Extended Reporting Period is available for an additional premium charge of 300% of the annual premium.
  • An unlimited Extended Reporting Period is available for an additional premium charge of 400% of the annual premium.

A written election of the Extended Reporting Period and payment of the premium must be arranged within 60 days of your contract termination.

Claims made against you and reported during the Extended Reporting Period will be considered as being reported during your final policy period for the purposes of applying the Limit of Liability.

For information about the ERP and costs, contact:

Affinity Insurance Services
159 County Line Road
Hatboro, PA 11040-1218
Phone: 800-621-0711
Fax: 877-443-9183