Qualified advisors may be in line for substantial savings, according to industry ethics group.
SAN DIEGO, CA, March 18, 2009--The National Ethics Bureau (NEB) has introduced a new type of E&O insurance for low-risk financial professionals. With Preferred Risk E&O(TM)
, advisors pay a premium that reflects the risk they pose to the insurer.
Standing behind the NEB sponsored program are underwriter CNA Insurance and administrator Marsh Consumer. According to Linda Liner, CNA's Assistant Vice President, Global Specialty Lines, "NEB's Preferred Risk E&O(TM)
is a departure for the industry. NEB's ability to conduct background screens on potential insureds gives us a new tool for aggressively evaluating risk."
"We've been involved in many industry E&O programs over the years," adds Kathryn D. Jacobson, Senior Vice President of Seabury & Smith (Marsh). "NEB's screening methods not only unlock substantial savings for advisors, but also allow for several unique features not generally available elsewhere."
Launched in December 2008, NEB's Preferred Risk E&O(TM)
is currently available to NEB members and to non-members who successful answer NEB's screening questions. Eligible advisors can then customize their coverage based on their license type, including life/health, mutual funds/variable products (Series 6), and Investment Advisor Representative (Series 65).
"The industry response has been off the charts," says Steven R. McCarty, NEB Chairman. "With high-risk individuals purged from the pool, low risk professionals can get a much better deal. That's especially important in a tough economy."
"This is an industry breakthrough because E&O premiums are typically `one-size-fits all,'" adds Jeffrey S. Kopitz, NEB President. "Finally, those with clean records no longer have to subsidize the claims of others."
The program's underwriter, CNA, is the 7th largest U.S. commercial insurer and 13th largest U.S. property & casualty insurer. CNA provides insurance protection to more than 1 million businesses and professionals in the U.S. and internationally.
With 26,000 employees and annual revenues approaching $5 billion, Marsh Consumer serves more clients than other firm in the industry. Marsh works with businesses, public entities, organizations, and private clients in over 100 countries.
To learn more, visit www.eoforless.com
or call Marsh Consumer at (866) 795-2041.
About National Ethics Bureau:
The National Ethics Bureau(TM) (NEB) is a leading advocate for business ethics in the financial services industry. NEB promotes ethical business practices through its trade-magazine columns, conference presentations, monthly newsletter, and website content. It also maintains a membership community of background-checked advisors who have agreed to uphold its principles and membership standards.
NEB also sponsors related services such as Preferred Risk E&O insurance and state-approved ethics and compliance continuing education courses for licensed insurance agents and securities brokers.
For the general public, NEB provides the ability to purchase a background check on any financial professional prior to doing business.
NEB is not a financial designation, nor does it endorse any products or services offered by its members or sponsors.
For more information, visit www.ethicscheck.com.
One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. CNA is a service mark registered with the United States Patent and Trademark Office. Copyright © 2009 CNA. All rights reserved.