Best's Review: Advice Not Given May Come Back to Haunt Agents.

OLDWICK, N.J. -- In the many insurance-coverage disputes over damage from Hurricane Katrina, some lawsuits alleged the agent was at fault for not telling the policyholders they needed flood insurance. These cases are the kind of legal action that could trigger errors-and-omissions insurance claims from independent agents in any flood-affected area, according to the June issue of Best's Review.

If the lawsuits don't gain ground with insurers, plaintiffs' attorneys may well turn their gaze to agents and brokers. But they will have to prove misrepresentation, either deliberate or unintentional, to win, said Ann Spragens, general counsel for the Property Casualty Insurers Association of America. How early cases alleging agent and broker misconduct are settled will determine whether more are filed in the near future.

As the 2006 hurricane season begins, the June issue of Best's Review also looks at how carriers have handled the record number of claims they received last year, particularly from New Orleans and surrounding Louisiana communities. With adjusters working under unimaginable conditions, insurers have settled most personal lines claims, but are looking at a long road for some commercial claims, especially business interruption.

Best's Review is published by A.M. Best Co., for insurance professionals, including home office executives, agents, brokers and others who are affiliated with the industry, including bankers, lawyers and educators.

Other highlights of the June issue include:

--How insurers can strengthen their risk management processes so they never again experience losses that are as high in comparison with direct premium written as they were with Katrina.

--A complete listing of insurance company mergers, acquisitions, name changes and redomestications in 2005.

--How an avian flu pandemic will likely affect life/health insurers and reinsurers.

To read these articles and more, subscribe to Best's Review by visiting our Web site at www.bestreview.com/subscribe, calling the A.M. Best customer service department at [phone], ext. 5742, or e-mailing your request to [e-mail].

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.