Renewal Terms of Our E&O Insurance Coverage
The renewal terms of our E&O insurance coverage are being finalized and will become effective on August 1, 2015. Over the past few years, our excellent claims history has kept our premium increases below the industry range to avoid significant increases in premium levels for our advisors.
We are in the process of finalizing the renewal for our 2015-2016 policy. The current policy is being aggressively marketed in order to obtain the best premium. I am estimating a per advisor premium at least equal to or slightly lower than last year’s rate of $2,900.
As part of our annual review of E&O, we performed our own analysis on fees assessed by other independent firms. For your review, here is a breakdown of some of our competitor’s E&O rates:
As it has been our process in collecting premiums, half of the 2015-2016 E&O premium will be paid in mid-July with the remainder paid by mid-August. Your E&O premium may be paid either through commissions or managed fee deductions or by submitting a check payable to Investment Planners, Inc.
Please contact Amber Justice to advise her of your choice of payment method on or before the close of business on Tuesday, July 14 or an automatic deduction of $1,400 will be initiated. The remaining fee balance will be due by August 14, 2015. If you choose to pay by check, please note that payment is due immediately or your commissions will be held to cover the outstanding fee. If you have questions, please call Amber at 217-542-1216 or send her an email at email@example.com.
As soon as the negotiations are finalized, you will be provided a follow up email to advise of the final premium renewal amount and the E&O carrier for this year. If you have any questions, please contact Renee at firstname.lastname@example.org or 217-542-1220.