E&O Insurance for RIAs

Coverage Details for $1,797
(Insurance premium $1,641 and NEA Membership Fee $156)

Provides protection for your liability for wrongful acts solely in the rendering or failing to render professional services. This includes professional services relating to the sale, attempted sale or servicing of variable annuities, variable life insurance (that requires a securities license) and mutual funds that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer that is a member of the Financial Industry Regulatory Authority, Investment Advisory Services, securities (other than variable annuities, variable life insurance and mutual funds), life insurance, accident and health insurance, or managed health care organization contracts (that does not require a securities license), disability income insurance, indexed/fixed annuities, Medicare Advantage or Medicare Supplemental Insurance.

$1M/Each Claim
$1M/Aggregate

+ Privacy Protection Endorsement (additional premium, if purchased)

Coverage Details for $1,961
(Insurance premium $1,805 and NEA Membership Fee $156)

Provides protection for your liability for wrongful acts solely in the rendering or failing to render professional services. This includes professional services relating to the sale, attempted sale or servicing of variable annuities, variable life insurance (that requires a securities license) and mutual funds that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer that is a member of the Financial Industry Regulatory Authority, Investment Advisory Services, securities (other than variable annuities, variable life insurance and mutual funds), life insurance, accident and health insurance, or managed health care organization contracts (that does not require a securities license), disability income insurance, indexed/fixed annuities, Medicare Advantage or Medicare Supplemental Insurance.

$1M/Each Claim
$2M/Aggregate

+ Privacy Protection Endorsement (additional premium, if purchased)

Coverage Details for $2,044
(Insurance premium $1,888 and NEA Membership Fee $156)

Provides protection for your liability for wrongful acts solely in the rendering or failing to render professional services. This includes professional services relating to the sale, attempted sale or servicing of variable annuities, variable life insurance (that requires a securities license) and mutual funds that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer that is a member of the Financial Industry Regulatory Authority, Investment Advisory Services, securities (other than variable annuities, variable life insurance and mutual funds), life insurance, accident and health insurance, or managed health care organization contracts (that does not require a securities license), disability income insurance, indexed/fixed annuities, Medicare Advantage or Medicare Supplemental Insurance.

$1M/Each Claim
$3M/Aggregate

+ Privacy Protection Endorsement (additional premium, if purchased)

Overview

This policy provides protection for your liability for wrongful acts solely in rendering or failing to render professional services. This includes the following:

1. The sale, attempted sale or servicing of variable annuities, variable life insurance (that requires a securities license) and mutual funds that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer that is a member of the Financial Industry Regulatory Authority; but only if such coverage is purchased;
2. Investment Advisory Services
3. The sale or attempted sale or servicing of securities (other than variable annuities, variable life insurance and mutual funds) approved by and offered on the securities platform of the Broker/Dealer with whom the Registered Investment Advisor Investment Advisor Representative has a contract;
4. Administration of Employee Benefit Plans;
5. Financial planning activities in conjunction with services described in paragraphs 1. through 4. of this definition, whether or not a separate fee is charged;
6. Services performed as a Fiduciary Advisor as defined in the Pension Protection Act of 2006, and any amendment thereof; or
7. Only the following services as a natural person Agent or General Agent, 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 but only if such coverage is purchased and shown on Certificate of Insurance:
   • a. The sale, attempted sale or servicing of life insurance, accident and health insurance, or managed health care organization contracts (that does not require a securities license);
   • b. The sale, attempted sale or servicing of disability income insurance;
   • c. The sale, attempted sale or servicing of indexed/fixed annuities;
   • d. The sale, attempted sale or servicing of Medicare Advantage or Medicare Supplemental Insurance;
   • e. Financial planning activities in conjunction with services described in paragraphs 1. through 4. of this definition, whether or not a separate fee is charged;
   • f. The supervision, management and training of an Agent by a General Agent with respect to activities otherwise covered by the Master Policy.

Limits of Liability

Limits of liability for $1,797 Plan

$1,000,000 each claim
$1,000,000 in the aggregate
$15,000,000 total Master Policy aggregate (for all non-New York Insureds)

Limits of liability for $1,961 Plan

$1,000,000 each claim
$2,000,000 in the aggregate
$15,000,000 total Master Policy aggregate (for all non-New York Insureds)

Limits of liability for $2,044 Plan

$1,000,000 each claim
$3,000,000 in the aggregate
$15,000,000 total Master Policy aggregate (for all non-New York Insureds)

Privacy Protection Endorsement Sublimits (if purchased):

$100,000 aggregate for all loss per insured
$100,000 each claim and in the aggregate for Privacy Injury Liability
$100,000 each claim and in the aggregate for Privacy Regulation Proceedings
$25,000 each claim for Privacy Event Expenses

Wire Transfer Claim Endorsement Sublimits

$150,000 per Wire Transfer Claim/$150,000 per Insured

Deductibles (Retentions):

$5,000 each Claim for Securities (other than Mutual Funds/Variable Annuities/Variable Insurance), Investment Advisory Services, Fiduciary Advisor

$5,000 each Claim for Variable Annuities/Variable Insurance (that requires a securities license) and Mutual Funds sold through any Broker/Dealer

$500 each Claim for Life, Accident, Health Insurance and Long Term Care Products through any Insurance Company (that does not require a securities license)

$2,500 each Claim for Indexed Annuities/Fixed Annuities

$2,500 each Claim for Disability Income Insurance

$5,000 Each Claim for the Privacy Protection Endorsement (if purchased)

$5,000 Each Claim for Wire Transfer

Endorsements (included)

Amend Definition of Investment Advisor Representative
This endorsement is for those insureds who continue to purchase Errors & Omissions coverage even though they are no longer in the industry and whose licensing may not be current due to this. Agents/Registered Representatives will be eligible to enroll for Errors & Omissions coverage for mutual funds/variable annuities even if they are no longer registered to sell such products (but had been in the past).

Additional Features Include:

• Competitive rates
• Prior Acts Coverage going back to the first continuous E&O policy subject to policy provisions
• Coverage for any corporation, partnership, or other business entity owned or controlled by an Insured for rendering or failing to render Professional Services
• Individual Annual policy term
• A one year extended reporting period at no additional charge subject to policy provisions
• Quick and easy online enrollment with certificate available online upon satisfactory confirmation of premium payment
• Quick and easy online certificate renewal
• Coverage extended to spouses, domestic partners, estates, heirs or legal representatives for claims arising out of their status as such
• Secretarial, clerical and administrative personnel are insured if acting on behalf of the insured while the insured is providing Professional Services

Plan Eligibility

Coverage is subject to answering all questions on the application correctly.

Underwritten by:

Continental Casualty Company (CNA)

• $9.6 billion in revenues
• 100+ years in business
• 7,000 employees
• U.S., Canada and International operations
• “A” rated for financial strength by A.M. Best
• 8th largest U.S. commercial lines insurer***
• Assets of $45.3 billion
• Statutory surplus of $10.9 billion****

*** Based on 2013 Net Written Premium, A.M. Best

**** Continental Casualty Company

Administered by:

Mercer Consumer, a service of Mercer Health & Benefits Administration LLC. Mercer is a global consulting leader in talent, health, retirement, and investments. Mercer helps clients around the world advance the health, wealth, and performance of their most vital asset—their people. Mercer’s 20,500+ employees are based in more than 40 countries. Mercer is a wholly subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital.

P.O. Box 8146
Des Moines, IA 50306-8146
Phone: 1-866-795-2041
Email: plsteam2.service@mercer.com

This highlights sheet, which has been prepared by Mercer Consumer, contains a summary of the insurance policy provisions. In the instance of conflict between this sheet and the actual policy, the policy language will prevail and control. See the policy for complete list of coverage and exclusions at
eo2017.staging.wpengine.com.

Disclaimer: 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 registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the “CNA” service mark in connection with insurance underwriting and claims activities. Copyright © 2017 CNA. All rights reserved.

This specimen policy is valid for effective dates of 10/15/2017 through 10/14/18.

RIA Policy Specimen PDF