Coverage is available on two levels, tailored to the nature of the agents practice. The agent can opt for coverage for claims arising out of the sale of (a) Medicare Advantage products ONLY, or (b) life insurance products in general. These modifications are made simply through changes to the definition of Professional Services.

Limits of Liability:

• $1,000,000 each claim subject to an annual aggregate of $3,000,000 each agent each policy period with a $15,000,000 annual aggregate policy limit which applies to all agents, all claims, each policy period.
• Higher policy limits available: $2,000,000 each claim, subject to an annual aggregate of $3,000,000 each agent, each policy period limit of liability. Please contact us for details at (800)621-0711.

Deductibles:

If elected and applicable premium paid, coverage includes the sale and servicing of mutual funds through any FINRA-registered broker/dealer. A $2,500 deductible applies.

If the agent’s contract with Good Health Associates, Inc. is terminated midterm, he/she will be covered up to the policy anniversary date for acts committed during the period the agent had coverage under this policy but prior to the termination date of the agent subject to the terms of the policy. Accordingly, there is no premium refund.

An Automatic One Year Extended Reporting Endorsement is available to a terminated agent at the same policy limits of the endorsed policy beginning on his or her date of termination and terminating 12 months thereafter for acts committed before his or her termination date. 

Coverage is provided by Columbia Casualty Company, a member of the CNA Insurance Companies (CNA).

See enrollment form for applicable premium and pro-rata premiums on mid-term enrollment.

1. Who is covered?

The licensed agent who is included on the roster maintained by Affinity Insurance Services while there is in effect a contract between Good Health Associates, Inc. and the licensed agent. Coverage is extended to the insured agent’s employee who is acting on behalf of the insured agent but not as an agent, sub-agent, broker or sub-broker who is licensed to sell Life and Accident & Health insurance. An insured agent’s estate will also be covered for acts committed while the agent was covered.

2. If I am a manager, does coverage extend to my agents?

No. Each licensed agent must have his or her own policy.

3. What activities are covered?

Any negligent act, error or omission by the insured or any person for whose acts the insured is legally liable, arising out of the conduct of the business of the insured in rendering services for others as a licensed Life, Accident and Health Insurance Agent; licensed Life, Accident and Health General Agent; or licensed Life, Accident and Health Insurance Broker; as respect to claims first made against the insured and reported to CNA during the policy period. Coverage provided is based upon the election of the agent and the payment of the applicable premium.

4. What is the Policy Limit of Liability?

The limit of liability is $1,000,000 each claim subject to an annual aggregate of $3,000,000 each agent/each policy period. 

5. Does this coverage apply to acts committed prior to the effective date of this policy?

Coverage is on a claims made and reported basis, and covers claims first made against the insured and reported to CNA during the policy period. When these claims arise out of acts committed prior to the inception date of coverage under the policy (i.e. Prior Acts) they will be covered provided that:

Such prior acts took place while the insured agent was covered by professional liability or errors and omissions insurance which was continuously in force back to the date of error and was one of which the insured had no knowledge as of the inception date of his coverage under this policy.

6. Is my partnership or corporation covered?

Yes. The corporation or partnership under which the insured is doing business or is employed is covered, but only as respects such corporation’s or partnership’s liability as it might arise out of the insured’s activities specified as covered in the policy.

7. What happens if an agent is terminated?

An Automatic One Year Extended Reporting Endorsement is available to a terminated agent at the same policy limits of the endorsed policy beginning on his or her date of termination and terminating 12 months thereafter for acts committed before his or her termination date.


Coverage under this program is offered on a claims made basis. The policy will only cover claims first made against the insured and reported to CNA during the policy period. The agent must not have had knowledge of the Claim or circumstances likely to result in a Claim at the effective date of his/her coverage. 

I. INSURING AGREEMENT

The Insurer shall pay on behalf of the Insured all Loss which the Insured shall become legally obligated to pay resulting from a Claim first made against them and reported to the Insurer during the Policy Period (or reported within 30 days thereafter) or the Extended Reporting Period, if applicable, for a Wrongful Act taking place on or after the Prior Acts Date solely in rendering or failing to render Professional Services.

II. DEFINITIONS

For purposes of coverage under this Coverage Part A:

1. Administration of Employee Benefit Plans means consultation with participants in an employee benefit plan in order to explain the provisions of such plan and handling day-to-day ministerial functions required by such plan, including without limitation enrollment, record keeping and filing reports with government agencies. Administration of Employee Benefit does not include third party administration of claims.

2. Insured means:

a. an Agent or General Agent;
b. any Registered Representative of a Broker/Dealer, who, at the time of rendering the Professional Services in dispute, was a member of the FINRA.
c. a 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 their capacity as such and on behalf of an Agent, General Agent or Registered Representative, provided such natural person did not receive any commission income pursuant to an agent, broker or registered representative contract with any insurance company or broker/dealer as a result of providing Professional Services offered by the Agent, General Agent or Registered Representative.

Insured does not include the Policyholder, Broker/Dealer or any subsidiary or any affiliate thereof.

3. Prior Acts Date means:

a. with respect to an Agent or General Agent, the date the Agent and/or General Agent 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 the Insurer of a Claim under this Policy).

b. with respect to a Registered Representative, the date the Registered Representative or Registered Investment Advisor contracted with the Broker/ Dealer specified in Item 2 of the Declarations for Claims otherwise covered under this Coverage Part.

4. Professional Services means: Coverage is available on two levels, tailored to the nature of the agents practice. The agent can opt and remit premium for coverage for claims arising out of the sale of (4.1) Medicare Advantage products only, or (4.2) life insurance products in general. These modifications are made through changes to the definition of Professional Services.

4.1 For those Insureds who purchase Option 1 - coverage for the sale of Medicare Advantage products only), Coverage Part A of the policy, Section II. DEFINITIONS, Definition 4 Professional Services is deleted in its entirety and replaced with the following:

Professional Services means:

a. with respect to an Agent or General Agent, only the following services to the extent they are provided in the course and scope of the Insured’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:

i. sale, attempted sale or servicing of Medicare Advantage products;

ii. supervision, management and training of an Agent by a General Agent with respect to activities otherwise covered by this Coverage Part A. Provided, however, any such coverage shall not apply to any Claim alleging any employment practices of any kind.

4.2 For those Insureds who purchase Option 2 - coverage for life insurance in general the following definition will apply.

Professional Services means:

a. with respect to an Agent or General Agent, only the following services to the extent they are provided in the course and scope of the Insured’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:

i. services as a notary public;

ii. sale, attempted sale or servicing of employee benefit plans, individual retirement plans and KEOGH retirement plans;

iii. Administration of Employee Benefit Plans

iv. sale, attempted sale or servicing of life insurance, accident and health insurance, managed health care organization contracts, disability income insurance, fixed annuities, and 24 hour care coverage (as defined by statutory law);

v. financial planning activities in conjunction with services described in paragraphs i. thru iv. of this definition, whether or not a separate fee is charged;

vi. supervision, management and training of an Agent by a General Agent with respect to activities otherwise covered by this Coverage Part A. Provided, however, any such coverage shall not apply to any Claim alleging any employment practices of any kind.

b. with respect to Registered Representative,
i. only the sale, attempted sale or servicing of variable annuities, variable life insurance and mutual funds that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer is a member of the National Association of Securities Dealers and only to the extent they are provided in the course and scope of the Insured’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.
ii. financial planning activities in conjunction with the services described in paragraph i. above whether or not a separate fee is charged.

III. EXCLUSIONS
In addition to the Exclusions contained in the General Terms and Conditions, the Insurer shall not be liable to pay any Loss in connection with any Claim:

1. based upon, directly or indirectly arising out of, or in any way involving any actual or alleged sale, attempted sale or servicing of products or services other than:

a. employee benefit plans, individual retirement arrangements and KEOGH retirement plans;

b.life insurance, accident and health insurance, managed health care organization contracts, disability income insurance, fixed annuities, and 24 hour care coverage (as defined by statutory law); or

c. variable annuities, variable life insurance and mutual funds that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer that is a member of the National Association of Securities Dealers.

2. brought by or on behalf of any Broker/Dealer other than one which buys, sells or trades in securities exclusively as a principal for its own account;
3. based upon, directly or indirectly arising out of or in any way involving the use of or investment in any hedging investment vehicle whether it is registered or not with the Securities and Exchange Commission;

IV. AUTOMATIC EXTENDED REPORTING PERIOD

1. If, during the Policy Period an Agent, General Agent or Registered Representative ceases their status as such with the Policyholder, such Agent, General Agent or Registered Representative shall have a one year Automatic Extended Reporting Period, beginning on his or her date of termination and terminating 12 months thereafter, during which coverage for such Agent or General Agent or Registered Representative shall continue under this Coverage Part, but only with respect to Wrongful Acts (i) committed after the Prior Acts Date as defined in Coverage Part A; (ii) committed before his or her termination date; and (iii) which are Wrongful Acts otherwise covered under the terms and conditions of this Policy.
2. An Agent, General Agent or Registered Representative shall not be entitled to such Automatic Extended Reporting Period if he or she is currently enrolled in any broker, dealer, life agent, registered representative, registered investment adviser, financial planning or professional liability policy, other than this Policy, whether or not that policy actually affords coverage for the Claim in question.
3. An Agent, General Agent or Registered Representative shall not be entitled to such Automatic Extended Reporting Period if the Policyholder terminated its relationship with such Agent, General Agent or Registered Representative for disciplinary reasons.
4. An Agent, General Agent or Registered Representative who was Retired or Disabled on the inception date of this Policy, shall not be entitled to such Automatic Extended Reporting Period.
5. The Automatic Extended Reporting Period does not create a separate or additional Limit of Liability or Policy Aggregate Limit of Liability.

If you have any questions regarding these exclusions, please call Affinity Insurance Services the Plan Administrator who can forward you a copy of the specimen policy for your review.

NOTE: This brochure is not intended to be a legal interpretation of the policy provisions, but merely to present highlights of the more important provisions of the program. This is intended only to provide an overview of standard policy features on any endorsements. The terms of the policy itself control. 

The Underwriter:
Columbia Casualty Company - a member of CNA Insurance Companies

Plan Administrator:
Affinity Insurance Services, Inc. 
159 E. County Line Road
Hatboro, PA 19040-1218
Phone: (800) 621-0711 Fax (877) 443-9183

In the event that you have a claim, you should immediately forward notice to the CNA Claims Administrator:
Life Claims Administrator
Columbia Casualty Company
40 Wall Street, 8th Floor
New York, NY 10005
Fax: 212-440-2855
Email: CANEWCLAIMS@CNA.COM