Louisiana Series 103 – Life, Health, And Accident Or Sickness Insurance Practice Exam

The idea being tested is professional liability for mistakes made while providing a service. Errors and Omissions liability covers claims arising from mistakes, oversights, or negligence in performing professional duties—like an insurance agent incorrectly putting a policy into effect, misplacing coverage, or failing to apply the right endorsements. This protection helps with defense costs and damages when a client suffers a loss due to those mistakes. Insurance fraud is about criminal deceit to gain something unlawfully. Fiduciary liability comes from mishandling someone else’s money in a fiduciary role. General liability covers injuries or property damage to others arising from normal business operations. None of these address mistakes in delivering professional services like placing a policy, which is why the correct term is Errors and Omissions.