NOTICE OF CLAIMS OR POTENTIAL CLAIMS

Transcription

1 1. What are my obligations under the Policy for reporting Claims or potential claims? You are required to provide the Insurer, ( Zurich ), with notice of any Claim that is made against you (or someone insured under your policy) as soon as practicable during the same Policy Period in which you first receive notice. The Zurich American Insurance Company (A member of Zurich Financial Services Ltd) appointed Lancer Claims Services, A Division of Brown & Brown Program Insurance Services, Inc. as the administrator of all Claims that occur under the Policy. Lancer Claims Services handles only professional liability claims. Please remember that a Claim does not need to be valid to be made against you. Claims without merit are frequently brought against representatives and you have the same obligation to report a Claim that is unjustified or without merit as those based on an actual error or omission. You need not wait until the Claim is actually made; under the Notice Provision, the Policy does permit you to report a potential claim. If you become aware of any act, error or omission or Personal Injury which may reasonably be expected to give rise to a Claim under the Policy, even if you feel that the matter is unjustified, report the available particulars immediately. Notice of a potential claim should include: A detailed description of the specific act, error or omission or Personal Injury The injury or damages which has resulted, or may result, from such negligent act, error or omission or Personal Injury, The circumstances by which you first became aware of such negligent act, error or omission or Person Injury. Should the circumstances or potential claim develop into a Claim at some future date, your reporting of a possible incident will serve as a notice of Claim under this Policy Period. E&O policies generally will not cover Claims that arise out of acts, errors or omissions of which you had knowledge prior to enrolling under that policy if you knew on the date of your enrollment under that policy, that such act, error or omission could reasonably result in a Claim. For this reason, it is always better to err on the side of reporting any matters which you believe could result in a Claim being made against you during the same Policy Period in which you become aware of the potential claim. HBI-EventClm v1 CalSurance Associates 1 of 6

2 2. What is considered a Claim? A Claim means a written demand received by you or anyone insured under your policy seeking monetary damages, including the service of suit or the institution of arbitration proceedings against you or someone insured under your policy. 3. What is a potential claim? A potential claim refers to any circumstances which may reasonably be expected to give rise to a Claim, as defined in Question 2, being made against an Insured. Some examples of what might be considered a potential claim include, but are not limited to: a letter or phone call from a current or former client stating you made a mistake or that a mistake has occurred, but the client has not made a specific request for money or some action to fix the mistake or to compensate the client for any alleged loss due to the mistake; any threatened lawsuit, arbitration proceeding or FINRA Statement of Claim; or a notice of deposition or subpoena that you have received in a lawsuit or arbitration. 4. How do I report a Claim or potential claim? For all types of Claims it is important that you notify Lancer Claims Services as soon as possible. Promptly complete the attached Claim form and send it to Lancer Claims Services and to H. Beck, Inc., at the addresses indicated on the form; Please note that in FINRA arbitrations or litigated matters there may be a predetermined response time. In the event an arbitration or suit is brought against you, immediately (within 24 hours upon being served with a statement of claim or summons and complaint) forward to Lancer Claims Services and H. Beck, Inc. copies of any written statement of claim, demand, notice, summons or other process you have received; Develop a written chronology of events giving rise to the Claim; Be prepared to provide a copy of your file; and As soon as practicable thereafter, send any other information that may be requested by Lancer Claims Services. HBI-EventClm v1 CalSurance Associates 2 of 6

3 5. What actions should I avoid in the event of a Claim? Do not engage your own attorney without specific authorization from Lancer Claims Services. Do not voluntarily make payment, assume any obligation or incur any expense. If you do, your rights to coverage under the Policy could be jeopardized, resulting in the denial of your Claim. Once an incident has been identified or an errors and omissions Claim has been made, great care should be exercised to avoid any disclosures or discussion of any facts or information relating to the Claim with anyone, unless they identify themselves to be from CalSurance Associates, Lancer Claims Services, Zurich, Securian, H. Beck, Inc. or a designated representative appointed to handle your Claim. Do not admit liability. If you do, your rights to coverage under the Policy could be jeopardized, resulting in the denial of your Claim. 6. What happens after the Claim is reported? After you have reported the Claim, a representative from Lancer Claims Services will contact you within a few days by telephone to acknowledge the receipt of the Claim and discuss the particulars of the situation. Additional information or documents may be requested at that time. Coverage under the Registered Representatives E&O program will be determined and you will be advised of any coverage issues. If necessary, an attorney will be retained. In order to ensure the best possible defense, you should cooperate completely with the individual retained, provide full details, and be candid. During the evaluation and settlement of your Claim, continue to cooperate with Lancer Claims Services by: o Meeting with representatives of Lancer Claims Services, submitting to their examination and interrogation under oath if requested, and giving written statements to such representatives; o Attending hearings, depositions and trials; and o Assisting in effecting settlement, securing and giving evidence, and obtaining the attendance of witnesses in the conduct of the suit. Every effort will be made to keep you advised of all developments in a Claim. However, this is not a consent to settle policy, and Lancer Claims Services will handle claims as it deems appropriate, including but not limited to engaging in settlement without your consent. In every case, once the situation has been identified as an errors and omissions Claim, great care should be exercised to avoid any disclosures or discussions of any facts or information relating to the Claim with anyone other than CalSurance Associates, Lancer Claims Services, Zurich, Securian, H. Beck, Inc. or a designated representative appointed to handle your Claim. You are responsible for any deductible owed under the Policy and Lancer will inform you of the deductible due and how payment should be made. HBI-EventClm v1 CalSurance Associates 3 of 6

4 Important Telephone Numbers for your Reference To report a Claim or Potential claim: First Reports Desk Lancer Claims Services Phone: (800) , option 1 FirstReports@lancerclaims.com H. Beck, Inc. Ben Cooper, Esq. Phone: (301) legal@cfginc.com; or bcooper@cfginc.com Coverage questions, assistance or questions about the E&O Program: CalSurance Associates Phone : (800) info@calsurance.com Enrollment and premium payment: Sue Gibson H. Beck, Inc. Phone: (301) sgibson@cfginc.com HBI-EventClm v1 CalSurance Associates 4 of 6

5 CLAIM FORM The Agents and Representatives of Securian Financial Group, Members of the Financial Sales Professionals Purchasing Group Registered Representative of H. Beck, Inc. Professional Liability, Policy Number EOC March 1, 2017 to March 1, 2018 There is certain information that should be developed in order for the E&O Insurer to evaluate the Claim made against you. If some of the data is not immediately available, do not hold up your report to Lancer Claims Services. Please send it along while you continue to develop the additional data. Please complete the Claim form below: Date: Claim Potential Claim Insured Information: Registered Representative Full Name: Business Address: Telephone number: Representative number: Name of your customer or client or the identity of the person who has made allegations or might allege a Claim or potential claim: Name: Address: Telephone number: Attorney information, if applicable: Statement of Claim or Summons and Complaint information, if applicable: Date received: Method received (by mail or in person): Amount of demand: Venue (State or Federal court or forum for arbitration): Please list the type of product or professional services that gave rise to this Claim or potential claim (i.e. mutual fund, limited partnership, general security). HBI-EventClm v1 CalSurance Associates 5 of 6

6 CLAIM FORM The Agents and Representatives of Securian Financial Group, Members of the Financial Sales Professionals Purchasing Group Registered Representative of H. Beck, Inc. Professional Liability, Policy Number EOC March 1, 2017 to March 1, 2018 If insurance is involved, please provide the name of the sponsoring company or insurance carrier with which the coverage was placed or should have been placed. If one of the Securian Financial Group companies or placed through H. Beck or an affiliate, please provide the policy number. Describe what the customer has alleged or might allege was your error or omission for this Claim or potential claim. Provide a list of events and documents that led up to this Claim or potential claim (e.g., date you initially discussed this product; copy of the application taken; any deposits received; was coverage bound; any correspondence in your possession (chronologically dated for the sequence of events that took place)). Photocopy all documents and send to Lancer Claims Services via one of the following methods: Via - FirstReports@lancerclaims.com Fax Via Mail - First Reports Desk Lancer Claims Services 681 S. Parker Street, 3rd Floor Orange, CA The toll free number is (800) , option 1 Please also provide a copy to Ben Cooper at H. Beck, Inc.: Via - legal@cfginc.com; bcooper@cfginc.com Fax Telephone HBI-EventClm v1 CalSurance Associates 6 of 6