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Policy Highlights

Underwritten by:
Continental Casualty Insurance Company (CNA)
CNA is the 7th largest U.S. commercial insurer and the 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.  Highlights include:

$10 billion in revenues
100+ years in business
9,400 employees
U.S. and International operations
“A” rated for financial strength by A.M. Best

Offered & Administered by:
The plan offerer & administrator is Marsh (a service of Seabury & Smith) is part of the family of MMC companies. With 24,000 employees and annual revenues approaching $5 billion Marsh serves more clients in more industries worldwide than any other firm in our industry. Marsh works with businesses, public entities, organizations, and private clients in over 100 countries.

Limits of Liability:
$1,000,000 each claim
$2,000,000 individual insured annual aggregate
$10,000,000 total policy aggregate all insured

Retentions:
$500 - Life, Health, Accident, Long Term Care
$2500 - Disability Income, Fixed or Indexed Annuities
$5000 - Mutual Funds, Variable Annuities, Investment Advisor (RIA)

Overview:
Provides protection against your liability for wrongful acts in the rendering of or failure to render professional services. This includes (but is not limited to) activities relating to the sale, attempted sale, or servicing of term life insurance, fixed universal life insurance, fixed whole life insurance, accident and health insurance, managed health care organization contracts, long term care insurance, and Medicare supplemental insurance. 

Optional Coverage if Purchased:
This includes (but is not limited to) activities relating to the sale, attempted sale, or servicing of disability income insurance, fixed annuities (including indexed annuities), variable annuities, variable universal life insurance, variable whole life insurance, mutual funds registered by the SEC and offered through a FINRA-registered Broker/Dealer, and Investment Advisory Services offered through a Registered Investment Advisor (RIA).

Extended Reporting Period:
Unlimited extended reporting period is granted to the insured in the event of retirement, disability, career change, or death (coverage extended to heirs) for no additional premium.

Retroactive Date:
Prior acts are dependent on your designation.

With respect to an agent or general agent, it is the date the agent or general agent became continuously insured without interruption under any claims made professional liability policy (subject to written proof of such coverage at the time the insured gives written notice to the insurer of a claim under the policy).

With respect to a Registered Representative or a Registered Investment Adviser, it is the latest date the Registered Representative or Registered Investment Adviser contracted with the Broker/Dealer.

Plan Eligibility:
NEB Members are eligible to receive this coverage subject to their favorably answering all qualifying questions on the application. Non-Members who answer favorably to the questions on the application may also be enrolled into this program.

National Ethics Bureau (NEB) 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.

SAN DIEGO, CA, October 24, 2008—National Ethics Bureau members (and nonmembers with clean professional backgrounds) can purchase coverage under a new product to be issued by Continental Casualty Insurance Company (CNA) and offered 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

Preferred Risk E&O™ substantially lowers the cost of E&O insurance. 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.

 “Preferred Risk E&O™ is the next-generation of professional liability insurance for insurance professionals,” says Steven R. McCarty, National Ethics Bureau Chairman. “Now that high-risk agents are purged from the pool, low-risk agents can get a much better deal.”

Preferred Risk 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.

Applicants can select from three levels of protection as follows:

• 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 (see below).*
• 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 (see below).*
• 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 (see below).*

Applicants 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 (see below).*

Applicants 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 (see below).*

Not only is CNA offering these competitive rates to NEB members, it has also agreed to provide a host of innovative 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
• Severability for all personal conduct exclusions
• Coverage for failure to supervise, manage, or train
• 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) if purchased
• Optional coverage for discretionary authority is provided to Registered Investment Advisors for professional services as defined under the policy

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 this E&O insurance 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 offerer & administrator is Marsh (a service of Seabury & Smith) is part of the family of MMC companies. With 24,000 employees and annual revenues approaching $5 billion Marsh serves more clients in more industries worldwide than any other firm in our 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 Marsh web site.  To learn more, visit www.EOforLess.com or call Marsh Consumer at (866) 795-2041.

CNA 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 © 2009 CNA. All rights reserved.

Marsh Consumer Disclaimer: Marsh Consumer, a service of Seabury & Smith (Marsh) is the producer, offerer, and program administrator for the National Ethics Bureau - sponsored E&O insurance program, and is the agent for all the coverages offered above. Marsh is acting as the exclusive insurance agent and program manager for CNA for this type of coverage, and not as the insurance broker. Should you have any questions regarding the insurance coverages offered under this program, including coverage underwriting, terms and conditions, and price quotes, please call Marsh at 866-795-2041.

Marsh is part of the family of MMC companies located at: 12421 Meredith Drive, Urbandale, IA 50398.
D/B/A in CA Seabury & Smith Insurance Program Management. CA Ins. Lic. #0633005. AR. Ins. Lic # 245544.

*NEB admin fees are calculated monthly and cover sponsorship and affiliation management, plus the administration of mandatory compliance, ethics, and business practice updates for the Preferred Risk E&O program. Monthly NEB admin fees for NEB members: Option (A) $8.83; Option (B) $10.58; Option (C) $10.16; RIA coverage $2.66; Disability coverage $2. Monthly NEB admin fees for non-members: Option (A) $10.58; Option (B) $12.33; Option (C) $11.92; RIA coverage $2.66; Disability coverage $2. All prices ($395/$495/$595) or ($495/$595/$695) reflect the total cost of their respective coverage, which includes both premium and NEB admin fees listed above.

1According to a 2008 NEB marketing analysis, most advisors pay from $800 to $1,200 annually for Life, Accident, Health, and Fixed Annuity E&O coverage. Therefore, the NEB equivalent total annual cost of $495 (member) and $595 (non-member) represents a potential annual savings of 20% to 50%.

For more information go to www.EOforLess.com or call Marsh at: (866) 795-2041