JHA has been around for more than 20 years. During that time we have NEVER had a suit for Errors and/or Omissions. That's because we think and we learn from our experience. Some of our procedures and requirements might seem to be somewhat demanding but time has shown that they are necessary to prevent extra work and the possibility of Errors and/or Omissions for both the Agent and ourselves.

25% MINIMUM EARNED PREMIUM (MEP):

At the time coverage is bound and confirmed to an Agent, the 25% MEP becomes due and payable. This should be advised to the Insured at the time they request coverage to be bound. Our billing, reporting and policy procedures are so fast that it is virtually impossible to reverse (cancel) an item unless it is within 24 Hours of the binding action. The problem is most often caused by an Insured who needs coverage for a closing and then doesn't advise you when the transaction does not take place. The number of times that we have cancelled any risk on a "flat" basis is very few and far between. In most cases, the 25% MEP and 100% of the fees will be earned and due. State taxes will of course be partially refunded as well.

If a property closing does not take place, we must be advised within 24 hours and receive documentary evidence that the closing did not take place or the minimum premium and fees will be charged and become your responsibility.

FLAT CANCELLATIONS:

We do not permit "flat" cancellations.

AGENT OF RECORD LETTER:

This is a letter signed and dated by an Insured who wishes to transfer their business from the existing agent to your agency. This is normally in advance of an approaching renewal date.

BROKER OF RECORD LETTER:

This is a letter signed and dated by your agency stating that you wish to transfer existing business or an individual account from your existing wholesaler to JHA. Sometimes this will be with the same insuring company, sometimes for both the existing Company and various alternative markets. Again, this is normally in advance of an approaching renewal date.

JHA AGENT AND BROKER OF RECORD LETTER PROCEDURES:

These letters are not normally effective mid-term of an existing policy unless there are really exceptional circumstances. We are required to give Companies and other Wholesalers at least 5 working days notice of AOR or BOR letters so that they have a chance to obtain a rescinding notice from an Insured. Rescinding notices should not become a problem with Broker of Record letters as your office does those, and since your BOR appoints JHA as your wholesaler, we do not expect you to change your mind.

In the event that you decide to transfer a book of business from another Wholesaler, to JHA, these situations take more than the usual 5 days and a listing of all policies that are in force, should be attached to your BOR letter so that we can deal with them all at the same time.

LLOYD'S QUOTATIONS:

In most situations there is no such thing as a "Lloyds" quote. The risk will usually have been quoted under a contract authority by a Wholesale broker like ourselves.

Therefore, the terms indicated depend on which contract authority was used to quote the risk. We have at least (4) four different Lloyd's contracts so we can deal with various situations. However, if you or your insured have a "Lloyds" quotation from another wholesaler, it will not be certain that we can match or beat the other quotation although, in most cases, we probably can. Just give us the details.

VALID QUOTATIONS:

In the event that we quote a risk, the quotation will be valid for (30) thirty days. If a quotation is requested to be bound and it's more than 30 days old, the risk must be re-underwritten before binding and its possible that the premium may change.

JHA YEARLY RENEWAL APPLICATIONS:

We require renewal applications every year….Why is this?

This has come up before and I'm confused that a retail agent wouldn't want an excuse to contact their Insured to discuss a renewal. In the Commercial lines arena, annual renewal applications have always been part of the renewal process more often than not, however, in the Personal Lines arena specifically homeowners, I can only surmise that "some other Wholesalers" don't do any underwriting of an account but merely want to process a renewal order. There are lots of things that can happen in the course of a year. Did the Insured put in a pool, add an addition to the home, get a dog, or have any other changes in exposure? A fresh application will probably reveal the change, give you a chance to sell more coverage and certainly protect your agency from an errors and omissions claim when the Company denies a claim for "non-disclosure", and the Insured's attorney thinks it is your fault. You don't have to have an application before getting a renewal quote but not getting one at all is confusing and dangerous.

SIGNED APPLICATIONS:

The applications must be signed and dated by both the Insured and the producing agent.