Frequently Asked Questions

1. Who is covered?
2. If I am a manager, does coverage extend to my agents?
   
3. What activities are covered?
   
4. What is the Policy Limit of Liability?
   
5. Does this coverage apply to acts committed prior to the effective date of this policy?
   
6. Is my partnership or corporation covered?
   
7. What happens if an agent is terminated?
   

1. Who is covered?
The licensed agent who is included on the roster maintained by Affinity Insurance Services, Inc. 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.