ANSWERS TO YOUR E & O QUESTIONS To Name or Not to Name? BY MARY LAPORTE, CPCU, CIC, LIC, CPIA
Q
I attended and E & O class a few weeks ago, and they talked about including the first and last name of every person you spoke with in the documentation we enter. Our agency uses“ activities” to note every conversation with a customer or underwriter. I typically state something like“ called the insured”, or“ received a call from the underwriter.” Isn’ t that good enough? Crystal, Alabama
a
Crystal, I can relate to what you are saying. For many years I used the term“ insured” myself to clarify who I spoke with in my documentation. However, we have learned the hard way that this is often not sufficient, and it is a habit we need to break.
Imagine you have a personal lines customer insuring a husband and wife when a dispute arises about a coverage they did not have. Your defense is your documentation that states:“ The insured called and said they don’ t want the coverage under their policy.” The husband could claim he never made that call, as could the wife. You need to testify who you spoke with. You probably don’ t remember, and if you did, why doesn’ t your note verify that? In a personal lines situation, stating“ Mr.” or“ Mrs.” would certainly clear things up, or even“ Bob” or“ Sally” is sufficient rather than their full names. But, what if the customer is single? Why
E O &
Q A not use“ insured” then? Because it is a habit you want to break in order to be more specific in your documentation.
For commercial accounts, using the first name is usually sufficient. If there is more than one“ Bob”, then using“ Bob B.” or“ Bob S.” should suffice. If you are not sure, use their full name. The same rule should apply when speaking to carrier representatives( underwriting, claim, marketing, etc.). If it is someone you speak with regularly, the last name may not be needed, but when in doubt, use the last name. When speaking with third parties such as lending institutions, auto dealerships or service providers, strive to use full names. If there is an ongoing issue which results in multiple entries in a short time, the full name should only be needed on the first documentation, and the first name should be sufficient on subsequent follow-ups notes.
Remember, in the event of E & O litigation, your documentation might be read by many parties: attorneys on both sides, expert witnesses and even members of a jury. Using names helps eliminate confusion as to who was a party in any conversation.
Mary LaPorte is a consultant and educator with a strong background in Errors & Omissions loss prevention. Forward your E & O questions to her at marylp @ lpinsuranceconsult. com.
14 KANSAS INSURANCE AGENT & BROKER | May- June 2017 |