Does an agent have a potential liability for not discussing LTCI with a client?
• If the insurance broker does not bring up the subject and have a meaningful discussion of LTCI with the client, the agent is creating an E & O exposure. For example, an agent in New Jersey did talk to his client about LTCI. However, he did not have the discussion documented. Result: he had to pay out $747,000 because the children of the client sued claiming that their inheritance would not have been reduced had he done his job & discussed the importance of LTCI.