proposal question

[littlebroker]

I submitted the app for Med-malpractice to the carrier, got the quote, proposed to insured, approved to bind. This Dr. A own 50% and Dr. B own 50% of the business, but the coverage we apply is mal-practice for Dr. A and Dr. A is name insured. We don't apply the entity coverage. When the carrier release the quote, they ask me to confirm if this coverage is for Dr. A only and I said yes. The carrier also said that they won't cover the entity (in their quote). Now the carrier came back and said that they can not bind it because this Dr. A is 50% owned to the entity.

Please advise if this is right? Thank you!

[LadyBroker]

Why wouldn't you include the Entity in the quote? Also, did you submit proof that Dr B has his own Med Mal? The carrier may not now want to bind, if they feel like they have exposure in the entity, and that entity is uninsured. I am just guessing, though. Did you talk to the underwriter yet?

[littlebroker]

Hi Ladybroker, thank you for replying. Here is the things:

Dr. B works for the hospital 100% & has his coverage through the hospital. He does not work at this business. The entity had insurance already. I already talked to the underwriter but he stills said no.

[Shagster12]

It sounds to me like the underwriter didn't get all the information they needed up front. The entity ownership issue and outside coverages should be disclosed up front to avoid this type of situation. That said, It seems that the exposure to the carrier here is limited by the seperate entity coverage and the fact that Dr. B has coverage outside as well as the limited exposure to your entity. It doesn't seem to make sense that the underwriter won't consider these factors, unless they maybe feel like there was relevant information 'hidden' from them up front and are now just digging in their heels on principle (I am married to an underwriter and believe me stranger things have happened).
Maybe you can go above the underwriter to a manager and get a more useful explanation, or even better an approval for your risk.

[littlebroker]

Hi Shagster12,

I took your advice and called a higher level....Got the binder. Thank you very much

[Shagster12]

You're very welcome little and good luck in the future!
Shagster

[darnovak]

My M.O. has always been to get all of the entity/entities info, ownership percentages, other insurance, underlying insurance, etc and give your underwriter so much information they will have no choice but to find a reason to say "yes, of course" instead of "no" or "wait a minute.... you didn't disclose such and such to us.." Developing a rapport with underwriters is critical. Even doing them a favor once in a while (like replacing a risk at renewal [or immediately in certain circumstances....] they say they really don't want or isn't really eligible, etc) has enormous value. When you have a borderline submission and need an "exception" or can "call in a favor", your underwriter will come shining through. Never abuse such a relationship - years of trust and integrity can be wiped away with one misrepresentation, omission, or lie on your behalf. As a producer, make sure your CSR/Account Manager/etc is on the same channel and is a part of the relationship. This is how real agents and brokers get the risks written. Regards,