National Ethics Bureau Introduces Groundbreaking Errors&Omissions Insurance Program for Preferred-Risk Financial Professionals Low-risk agents can now save up to 50% on their E&O insurance premium, according to industry ethics group

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SAN DIEGO, CA, December 17, 2008—National Ethics Bureau members (and nonmembers with clean professional backgrounds) can purchase high-quality E&O coverage under a new product to be issued by Continental Casualty Insurance Company (CNA) and administered by Marsh Consumer, a service of Seabury & Smith. Coverage under this product will cost up to 50% less than comparable coverage for higher risk individuals.1

NEB’s Preferred Risk E&O™ substantially lowers the cost of E&O insurance for NEB members. Reason: It allows agents to pay a premium commensurate with the risk they pose to the insurer. Since NEB members have passed a comprehensive series of background checks, CNA’s premium is substantially lower than the premium charged for non-qualifying risks.

 “NEB’s Preferred Risk E&O™ is the next-generation of professional liability coverage for insurance agents and investment advisors,” says Steven R. McCarty, National Ethics Bureau 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.”

“NEB standards created a unique low-risk category for errors and omissions insurance that has never existed before,” adds Jeffrey S. Kopitz, NEB President. “Finally, those with clean records no longer have to subsidize the claims of others.”

NEB’s sponsored E&O product provides a $1,000,000 limit of liability for each claim and a $2,000,000 individual insured annual aggregate limit, and deductibles start at just $500 per insured for life, accident, and health products.

Members can select from three levels of protection:

• Package A covers activities relating to life, accident, and health insurance for a total annual cost of only $395, which includes premium plus NEB administrative fee. 
• Package B covers all of the above plus indexed and fixed annuities for a total annual cost of $495 which includes premium plus NEB administrative fee.
• Package C covers all of the above, plus mutual funds and variable life/annuities for a total annual cost of $595, which includes premium plus NEB administrative fee.

Members who have purchased either Package A, B, or C may also add disability income insurance coverage to their plan for an additional total annual cost of $50, which includes premium plus NEB administrative fee. 

Members who have purchased Package C may also add registered investment advisor representative coverage (which includes the sale and servicing of mutual funds, variable products, stocks, and bonds) for an additional total annual cost of $400, which includes premium plus NEB administrative fee.

Non-members can also qualify for coverage by successfully answering NEB’s screening questions and paying an additional $100 regardless of package chosen.

Not only is CNA offering competitive rates to NEB members and non-members, it has also agreed to provide a host of innovative coverage features, including: 

• Post-retirement claims for no additional premium
• Notary public activity
• Legal fees, court costs, and costs of appeal
• Coverage extended to spouses, domestic partners, beneficiaries, estate, or legal representatives for claims arising out of their status as such
• Employees or administrative personnel if acting on behalf of insured
• Coverage for failure to supervise, manage, or train staff
• Acting as a fiduciary advisor for ERISA plans
• Fee-based financial planning services ancillary to professional services

Other features include:

• Competitive rates
• Unlimited extended reporting period
• Individualized coverage options
• Optional coverage for the sale and servicing of mutual funds, variable products, stocks, and bonds by a Registered Investment Advisor (series 65) representative
• Optional coverage for discretionary authority is provided to Registered Investment Advisor representatives for professional services as defined under the policy

(Note: See Policy for complete list of coverage and exclusions at www.eoforless.com.)

NEB’s Preferred Risk E&O™ also offers flexible payment options through Marsh Consumer, including annual pay with credit card, annual pay by check, and monthly payments via checking account or credit card. Monthly payments require an additional $5.00 monthly processing charge.

Standing behind NEB’s E&O offering are two of the strongest players in the marketplace. The underwriter is CNA, 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.

The plan administrator is Marsh Consumer. With 26,000 employees and annual revenues approaching $5 billion, Marsh Consumer serves more clients than any other firm in the industry. Marsh works with businesses, public entities, organizations, and private clients in over 100 countries.

NEB members and non-members can purchase coverage quickly and conveniently using a dedicated NEB/Marsh web site.  To learn more, visit www.eoforless.com or call Marsh Consumer at (866) 795-2041.

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About National Ethics Bureau:

The National Ethics Bureau™ (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.

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 service mark registered with the United States Patent and Trademark Office. Copyright © 2008 CNA. All rights reserved.

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