Advocis unveils details of new E&O program

(March 9, 2005) Advocis has released details of its new in-house errors and omissions program, to be officially rolled out in April.

Advocis created the Advocis Protective Association (APA) last year to develop a professional insurance liability program, managed by the advisor group’s current E&O provider, Aon Reed Stenhouse. The plan features enhanced coverage and reduced prices, Advocis says.

The life and mutual fund plan (Coverage A) offers coverage of $1 million, $2 million or $5 million. Premiums range from $795 a year for members for coverage up to $1 million ($895 for non-members) to $1,110 for coverage up to $5 million ($1,210 for non-members).

By comparison, last year Advocis members paid $993 million for coverage up to $1 million coverage and $2,316 for coverage up to $5 million.

The life and fund plan now includes term deposits, GICs and income trusts as well as extended coverage for appearances before a disciplinary body. It also covers prior acts and claims made in the U.S., as well as Canada.

In addition, the plan allows dually-licensed agents who give up one of their licences to purchase an extended reporting claim that will cover claims related to their former business. Administrative assistants who are licensed, but without a book of business, are also eligible for coverage of $1 million, for 50% of the applicable premium.

Defence costs are also paid in full by the insurer without a deductible, Advocis says, and are in addition to the liability limit.

The securities plan (Coverage B) covers advisors who conduct securities transactions, or deal in income tax and estate planning. Alternative investments such as hedge funds and linked notes are also included in the securities plan, although pre-approval is required for specialty products, Advocis says.

Filed by Doug Watt, Advisor.ca, doug.watt@advisor.rogers.com