FAQ

 

What are the requirements to qualify for PIAPRO coverage?

Before a PIAPRO policy can be issued there are three basic requirements:

  1. You must be a member in good standing of the Professional Insurance Agents (PIA)
  2. You are required to make an initial surplus investment.  Given the PIAPRO decision to form as a Risk Retention Group, policyholders must be owners/stockholders of the company.  The required surplus contribution will be 33% of the first-year premium paid at inception or in equal installments over three years.
  3. You meet the standard company underwriting requirements.

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Can I get a rate indication and, if so, what is required?

Yes you can get a rate indication by filling out a Rate Indication Form and sending it to the producer at your state PIA affiliate association.  You can also get a rate indication by submitting another carrier's application.  However, a completed PIAPRO application will be required for a bindable quote and policy issuance.

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Will the PIAPRO Policy be written on A rated paper and will my companies accept an RRG E&O Program?

Yes, the PIAPRO program is written on Argonaut-Midwest Insurance Company, an A rated and admitted company and should be accepted by all your carriers.

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Why should I use PIAPRO as an E&O market?

Because PIA members and the PIA national organization own the company and  controls the responsiveness, service, direction and success of the company, its stability in the market and product competitiveness.

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Can I get higher limits through the PIAPRO program?

Yes, higher limits up to $10,000,000 will be available by using the facultative reinsurance market.

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Are new independent agencies acceptable in the PIAPRO Program?

Yes, for agencies that have been in the agency business but are new to the independent agancy system and agencies that are new to the industry are acceptable subject to the standard underwriting guidelines.

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I really like the PIAPRO program and overall concept. Can I invest more in the program than 33% of the first-year premium?

Yes, the 33% of the first year premium is the minimum investment. There is no maximum cap on investment.

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Who will process policy applications?

ALPS Risk & Insurance Services (ARIS), a member of the ALPS Family of Professional Services will process the application. ARIS has assisted PIAPRO throughout the feasibility and captive development stages, and will handle policy issuance directly. PIAPRO applications will not be processed through the PIA national office.

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Who will process claims?

ALPS Risk Insurance Services, ARIS, will also be processing claims.  If you are a PIAPRO policy holder and you receive notice of a claim, or become aware of a wrongful act or personal injury that could reasonably be expected to be the basis of a claim, you must immediately deliver a written notice of the claim, wrongful act or personal injury directly to ARIS as soon as practicable.  ARIS also encourages reporting of any facts, events or circumstances that may give rise to a claim at the first sign of a problem.  Our claims personnel are always available through our 24 hour/365 days a year claims hotline.

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Can I sell or transfer my PIAPRO stock?

Only PIAPRO program policy holders may own stock in the PIAPRO program. If your agency discontinues coverage under the PIAPRO program and you have made your 33% minimum surplus investment, only PIAPRO may redeem your stock under the guidelines established by the PIAPRO Board. If you sell your agency to another PIA member that has coverage through the PIAPRO program, they may assume your stock. If the buying agency is not participating in the PIAPRO program then your stock will need to be redeemed by PIAPRO. At no time may stock be transferred to a non-policyholder.

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Policy Highlights

  • Pay on behalf of contract
  • Consent to settle does not include a "Hammer Clause" and includes a peer review option
  • Claims expense allowance is outside of policy limits, subject to cap
  • Broad definition of "Insured"
  • Broad definition of "Professional Services" that includes activities like consulting, an instructor of insurance related subjects, insurance expert witness, and others insurance activities
  • Deductible reduction for the use of mediation
  • Pay no more than two deductibles in a policy year
  • Offering a Standard and Enhanced policy
  • Some reimbursement outside of limits and not subject to the deductible for loss of earnings while attending a trial, hearing, arbitration proceeding or regulatory proceeding concerning a covered claim
  • Some expense reimbursement outside of limits and not subject to the deductible for attorney fees and expenses while attending regulatory proceedings

Policy Highlights are for illustrative purposes only. Please contact your PIA state affiliate association for actual policy information and samples of the policy forms.