PFA Errors and Omissions Guidelines and Requirements

PFA requires agents to have Errors and Omissions (E&O) coverage that meets specific requirements but offers a one-time exemption for newly recruited sales associates who have their own E&O coverage in force prior to joining PFA. To qualify for the exemption, the outside E&O policy must meet certain criteria and the sales associate must agree to purchase PFA's compliant E&O coverage when the exemption expires.

The Agent will meet the following 5 requirements:

1. The Agent’s existing policy coverage limit meets or exceeds the coverage required by NLG and PFA. At least 2-million-dollar coverage with no more than a 10,000 deductible. It must reflect the individual agent’s legal name as the insured or certificate holder.
2. The Agent must show they have paid a year’s premium in advance and cannot get a refund. Installment payments are not accepted.
3. The Agent’s existing outside E&O policy was written prior to their PFA recruitment date.
4. The Agent has contacted his E&O carrier and obtained an endorsement to his coverage certificate naming “PFA, its Sales Associates, officers and employees as additional insured parties as their interests may appear” under the agent’s E&O policy. The Agent has the endorsement/addendum reflecting this change in their policy.
5. The agent agrees to purchase PFA’s compliant E&O when their exempted E&O policy expires and renew the PFA E&O each year thereafter for so long as they are members of PFA.

Agents must submit three documents to the PFA Licensing Department (Licensing@pfaoffice.com) to apply for the exemption:

1. A copy of their current E&O certificate with the outside carrier containing the required endorsement
2. A receipt showing the full years premium paid
3. A copy of the amendment to the policy reflecting the required endorsement

Due to our hierarchal structure, PFA requires agents to purchase E&O coverage from them to ensure that all supervisory personnel and the writing agent's upline are insured, as they would be involved in any complaints filed against the writing agent. Failure to carry E&O coverage that meets PFA's guidelines can result in termination by carriers.

E&O Renewal

The PFA E&O coverage expires for all Agents July 1st of the current year. E&O renewal starts at the end of June. Agents with active appointments are required to renew this coverage regardless of activity or production.

Renewals not completed within 30 days of the expiration date may lead to termination by carriers.

Agents renewing after July 30th will incur a $100 penalty fee and will be place on “As Earned” for commissions.

OBTAINING YOUR NEW PFA E&O CERTIFICATES

You may purchase E&O on PFA community using your credit card. Certificates are ordered once per week and when received by PFA from the carrier, are posted on the upload section of PTRAC. PFA Sales Associates will be responsible for obtaining, renewing and submitting copies of their new E&O certificates to all carriers with whom they are appointed with.