Posted by Jim/AL on 2/15/13 11:56am
Msg #455994

E&O question. Hope Harry answers.

Can I have more than one policy?

See no reason why not, but what do I know. Getting a good rate for my $25k bond, but they only offer $10k E&O...also low rate.
Can I purchase more from NotRot? Harry?

Reply by Malbrough_LA on 2/15/13 11:57am
Msg #455995

I have 2 different E&O policies through Not Rot n/m

Reply by Jim/AL on 2/15/13 11:58am
Msg #455998

Re: I have 2 different E&O policies through Not Rot

Cool...why two vs. one large?

Reply by Malbrough_LA on 2/15/13 12:01pm
Msg #456001

I use one for GNW to cover my ofc and the other covers

loan closings.

Reply by Linda_H/FL on 2/15/13 12:57pm
Msg #456019

So you have two different types of policies

Notary E&O and Signing Agent E&O

I can get $100k Notary E&O Insurance right here..

Reply by jba/fl on 2/15/13 12:05pm
Msg #456003

Contact Us button bottom of page....use it. n/m

Reply by Linda_H/FL on 2/15/13 1:02pm
Msg #456020

Jim, you can buy $100k E&O for Alabama right here

but it IS pricier than mine is.

Also, I think Harry said once before you can't stack policies - only one will cover. You can have two separate types of polices (Notary E&O and Signing Agent E&O) but you can't have two duplicate policies and get coverage from both. I believe he said that.

JMO

Reply by jba/fl on 2/15/13 9:45pm
Msg #456122

I thought that was said here before by Harry - no stacking n/m

Reply by Kenny Services - Dawn on 2/15/13 2:20pm
Msg #456038

NO!! I went through this last year. You cannot have two, they have to be converted to one and they dont like to do that, its a pain in the A$$. I was told this last year from NR and it became an issue. I wouldnt do it, just me two cents!!!

1.) they think you are price shopping to get it cheaper than full price...you will catch Hell 2.) insurance companies prohibit it from what i understand.

Reply by Pam/NM on 2/15/13 2:54pm
Msg #456045

It's my understanding that each state regulates the insurance sold within that state. This would probably be something that you would address with your state Public Regulation Commission, or whatever agency within your state would regulate insurance. That being said, I would imagine (in NM at least) that if you have 2 policies from 2 companies and a loss was incurred, the damages would be subrogated between the two companies.

Reply by Jack/AL on 2/15/13 4:00pm
Msg #456070

Jim, back when Alabama required only the $10K policy, that was what I had. With three years remaining on the policy and my commission, I walked into the local insurance company that provided the $10K coverage and asked to just drop it (no merging, no refund, no nothing) and sell me a $25K policy. Was told that they could not do that, because AL only had the $10K requirement. Sounds like the local vernacular for "we've always done it that way." I just went online at NotRot and got a $25K policy to coincide with the remaining 3 years of my four year commission period. I just go on with life as though the $10K policy does not exist. When signing up with new clients, I truthfully tell them that I have $25K coverage. When the time comes to renew my commission and the policy, I'll just do it right here on NotRot and not worry about the local yocals.

Reply by Linda_H/FL on 2/15/13 4:39pm
Msg #456081

Jack, are you confusing the bond with the E&O?

Alabama required a $10k *bond* , not a $10k *policy*...which went up to $25k, right?

Reply by Jim/AL on 2/15/13 4:51pm
Msg #456087

Re: Jack, are you confusing the bond with the E&O?

You are correct Linda. $10k went to $25k 01/01/2013...I assume you do not change until renewal.

Reply by GOLDGIRL/CA on 2/15/13 4:45pm
Msg #456085

I think that's exactly it, Dawn. You can't can't make identical claims on multiple policies. That would be like this Lifetime move I just saw where the husband bought a $1 million insurance policy on his wife, then had her whacked. He might collect the $1 million but he couldn't expect to collect on ten other $1 million policies that he thought of also buying. Otherwise, everybody would do it. Well, not whack their wife, but buy multiple policies covering the same thing, expecting all will pay.

Reply by Harry [NR] on 2/15/13 5:58pm
Msg #456100

The short answer is yes.

You may purchase multiple policies from separate carriers to effectively increase your coverage. For example, if you purchase a $100,000 Merchants Bonding policy through us, and then purchase a $100,000 CNA Surety policy through us, you would effectively have $200,000 in coverage. If you were sued, you would notify both carriers and they would decide which is going to lead the defense. Defense costs and judgments would then be paid 50/50 by the carriers.

You may also purchase multiple policies of different types from us. For example, some notaries carry a $25,000 notary errors and omissions policy for GNW, along with a $125,000 signing agent errors and omissions policy (not available in all states) to cover witness-only loan signings. Both policies would provide coverage for a notarial error made in connection with a signing, but it's likely the notary errors and omissions policy would NOT cover something like lost documents, a poor explanation of the RTC and other non-notarial errors.

So what can't you do?

Carriers will generally frown on the purchase of multiple policies of the same type from the same carrier. There are two main reasons for this: 1) Risk tolerance / contractual agreements. In some cases, sureties either do not want to go on the hook for more than $100,000 on an individual risk OR they don't have the money to confidently back a large risk and their reinsurers (insurance companies that insurance other companies) don't want to assume the excess risk. 2) Pricing. In certain cases - California, for example - the sum of four $25,000 policies is less than the cost of a single $100,000 policy. The $100k policy is priced high for a reason, and companies like Merchants don't want people gaming the system by purchasing several small policies to reach the $100k mark. If they see funky activity, they'll ask us to cancel policies to correct it.

Finally, a word about higher-limit E&O policies...

We offer policies up to $2,000,000. The higher-limit policies are underwritten (meaning you have to apply and you are scrutinized), and are claims-made and reported. A claims-made policy means the claim must occur AND be reported during the policy period. Once the policy expires, it no longer provides coverage, even for errors originally occurring during the policy period. (Although the reporting period can be extended to cover prior events at an additional cost.) For this reason, it is extremely important that you renew these types of policies each year.

In contrast, the lower-limit EO policies, which were discussed earlier, are occurrence-based policies. This means they provide coverage for errors that take place during the policy term, almost regardless of when they are reported. For example, if you have a policy running 1/15/2013 through 1/15/2014 and are sued on 7/15/2016 for something you did on 7/15/2013, the occurrence-based policy would cover it. Unless you still had coverage or had purchased extended reporting, a claims-made policy would not.

I hope this helps.

Harry
Notary Rotary