answers to your E&O questions
Can underwriting files
be kept electronically?
by mary laporte, cpcu, cic, lic, cpia
Q
Our office went paperless a few
years ago, but in the Personal
Lines department, we still maintain
paper files for the carriers who have
given us underwriting authority. It is
my understanding that it was in the
agreement when they gave us the
authority that we had to maintain
the underwriting file for a period of
five to seven years (depending on the
carrier).
EO
&
QA
amend the agreement to allow retention
of a digital record instead of paper,
or respond in writing that storing the
underwriting file digitally is acceptable.
Then store that written documentation
with your agreement.
Going forward, you no longer need to
keep a paper underwriting file. But what
By Mary LaPorte, CPCU,
about all of that paper you are storing
CIC, to now? You will need to weigh
prior LIC, CPIA
the cost of scanning
Agent’s questions about Errors and it against the cost how E&O lo
Omissions, and
of storing it until the end of the required period.
Do you think we are still in compliance with our
prevented. For most agencies, it is not worth the effort to go
agreement if we scan the underwriting files and
back and scan the older files, but others choose to
keep them electronically?
I just scan the mostE&O class, andtwo, so that the paper
attended an recent year or they told us about how important it i
– Cindy, Kansas
runs off sooner. There are some agencies, like Over the years, our
when writing new business for Personal Lines.
wholesalers, who may have older contracts which
number of different checklists but we just don’t use them any more. The bigges
require the paper file be kept indefinitely. This
Cindy, this is a common dilemma for many
new business is typically entered directlyyou no longer have a
into the carrier’s system on line. A lot
can become problematic if
agencies who have underwriting authority,
contract with the carrier and there is no willingness
whether it be in Personal or Commercialon the checklist is redundant, or we don’t need it to get a policy issued. It is a w
Lines.
the checklist out their part then transfer requirement. So it is the carrier’s syste
on by hand, to amend the the information into
better to address the issue earlier, rather than later.
The solution is quite simple, but it starts withclass I started to question our procedure. Do you feel that a checklist is really
the your
agreement. Pull out that contract/agreement Michigan
Laura,
This is simply one of those areas we need to clarity
relating to the underwriting authority and locate
as our agencies and carriers continue to adjust it
the clause which addresses maintaining the
Laura, many times when we attend an E&O class,to is tempting to di
the The f