Contact Information: Marketing contact: Nadeene Wood-Clater Uni-Ter Group 678-781-2435 Media contact: Mechlin Moore MDM Communications 239-777-1595
Insolvency Gap Insurance Introduced -- First Policies Issued to Risk Retention Groups
ATLANTA, GA--(Marketwire - July 24, 2008) - Agents of financially stable insurers that are
low-rated or not rated by A. M. Best Company will have access for the first
time to legal defense coverage provided by companies that obtain Insolvency
Gap Insurance available through Uni-Ter Underwriting Management
Corporation, the managing general agency.
This newly introduced policy, known officially as "Insurance Agent's Errors
and Omissions Insurer Insolvency Gap Defense Costs Insurance," permits a
designated insurance company to cover each of its duly appointed and
licensed agents by purchasing a single policy that provides legal defense
coverage in the unlikely event that the designated carrier is liquidated.
The first and second policies were issued recently to Ponce de Leon LTC
RRG, Inc. and Lewis & Clark LTC RRG, Inc., writers of General and
Professional Liability insurance for long-term care facilities in Florida
and 46 other states. Ponce de Leon and Lewis & Clark carry Financial
Stability Ratings® of "A Exceptional" from Demotech, Inc., the financial
analysis and actuarial services firm, but have not been in business long
enough to apply for Best ratings.
The policies are issued by Century Surety Company, Columbus, OH. Demotech,
Inc., Columbus, OH, provides the underwriting through a process that
includes financial analysis to qualify companies, cost of coverage, and
on-going monitoring of insured companies' financial stability. U. S. RE
Corporation, Pearl River, NY, is the retail broker.
"Most insurance agents' Errors & Omissions insurers exclude insurance
company insolvency exposure. Plugging the insolvency coverage gap for a
targeted group of financially stable, insurers and their producers levels
the playing field," said Joseph Petrelli, President/CEO of Demotech.
Sanford Elsass, President/CEO, Underwriting Manager, Ponce de Leon and
Lewis & Clark, said his companies are pleased to provide agents with this
added protection not available from the standard E & O markets.