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The Role of Agency Procedures in E&O Loss Control

An insured has a loss that exceeds her policy limits. She claims that, a short time ago, she had called and increased her limits. The agency has no record of such a call. The adjuster has suggested that she recover the remainder of the claim from the agency's E&O policy. Without documentation, how does the agency defend itself? Answer: a written agency procedures manual that incorporates the "invariable practice" principle.

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