By: Tricia Hancock, CLTC, Underwriters Marketing Service


We are in the business of protecting our clients from everything - an early death, loss of income during a disability, estate taxes, running out of money during retirement, and more.

But are you protecting yourself, not from your clients, but from their heirs?

A registered rep in Utah thought he was protected. This is what happened to him. He thought he did everything right by his clients. He helped plan their retirement, even recommended long-term care insurance to protect their assets, but they turned him down. Later, their son sued him after they both suffered from dementia and the medical bills began coming in. The rep thought he was covered by his Errors and Omissions policy. He wasn’t. E&O would protect him from a suit by his clients, but not from a suit by a third party (their son). He also didn’t document his file with his advice to purchase LTCI. The end result – he paid $600,000 plus the son’s legal fees. (From Registered Rep, Scary Story, April 1, 2006, for a complete copy of the
article please ask Tricia)

So, how do you protect yourself? UMS has 2 ways.

First - ask your client what their plan is if they have an extended healthcare
event (a less scary way of saying needing long term care), and second,
if they decide against purchasing LTCI and to self insure, which is what they
are doing if they don't have insurance, ask them to sign a liability release for
your file. UMS has a sample form for you to look at & use as a template
to protect yourself.

Underwriters Marketing Service is dedicated to helping you do

what you do best, serve clients.  Here you can download a copy
of our Liability Release for LTCi. Then contact Tricia for additional
resources 800-524-1774

Designed for insurance financial professional use.

Underwriters Marketing Service

100 Century Parkway

Suite 240

Mt Laurel NJ 08054

Phone:  800-524-1774

Fax:       856-727-0600