Striking the Balance: Managing Policy Documents in the Digital Age

Striking the Balance: Managing Policy Documents in the Digital Age

In the ever-evolving landscape of insurance, agencies face a critical question: What is the best practice for maintaining electronic copies of policy documents in agency management systems (AMS)? As carriers increasingly provide policies directly to insureds and agencies can easily download policies, the debate centers on whether to rely solely on carrier portals or to consistently obtain and retain full policy documents in the AMS.

Response 1: Prioritizing Error Prevention

Errors & omissions classes advocate for the cautious approach of retaining all carrier forms and endorsements in the AMS. This approach safeguards agencies if issues arise, ensuring that even if carriers replace policies or endorsements, agencies have a record of what was used in their systems. This becomes especially crucial when dealing with carriers using proprietary forms, older forms, or those containing statements like “Contains Copyrighted Material."

Response 2: Upholding Professionalism and Client Servicesajad-nori-21mJd5NUGZU-unsplash

An alternative perspective emphasizes the importance of downloading policies and storing them with customer records. This ensures that agencies can verify policy accuracy and readily access them when discussing changes and coverage recommendations with clients. Expressing concern over agencies neglecting policy checks and discussions due to reliance on carrier portals, this response underscores the impact on professionalism and client service, potentially leading to increased errors and omissions claims.

Response 3: A Matter of Choice and Preparedness

The third response highlights the agency's discretion, citing a case involving asbestos claims from the '80s. While acknowledging the insurer's request for policy forms long after statutory requirements had expired, the response suggests agencies may feel more secure retaining forms independently rather than relying solely on carriers.

Response 4: Mitigating Risks and Ensuring Professional Responsibility

Emphasizing the agency's responsibility to maintain all policy records, the fourth response rejects reliance on carriers as a potential open door to errors and omissions claims. Recommending that agencies accept downloads and review policies before transmitting them to clients, this approach aligns with the digital age's capabilities while emphasizing professional responsibility.

Response 5: Balancing Accessibility and Database Integrity

The final perspective advocates for a balanced approach, suggesting that while agencies need access to forms, not every form needs to be attached to the AMS. Surplus forms should be maintained within the system, while forms accessible on carrier sites or client portals may not require attachment. More crucial, however, is ensuring the completeness of the AMS database with client information, coverage details, optional endorsements, and comprehensive documentation.

In navigating this digital age, agencies must strike a delicate balance between leveraging technology and upholding professional standards. The consensus underscores the importance of maintaining records, verifying accuracy, and embracing the digital capabilities at their disposal to ensure comprehensive client service and mitigate potential risks.

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