A first-of-its-kind program launched last year is still sitting on the shelf, according to the program's underwriting manager, who said sellers' attitudes are responsible for the lack of movement.

While creators of Complication Insurance and Plaintiff Contract Litigation Insurance say doctors and lawyers are enthusiastic about pushing sales, insurance brokers have been less inclined to inform customers that their best efforts might result in adverse outcomes, according to Richard Robin, CEO of NAS Insurance Services in Encino, Calif.

“Candidly, that's one program where the product just hasn't succeeded,” said Mr. Robin, when asked for an update on Claims Dispute Insurance, a product conceived by wholesaler Swett & Crawford and underwritten by NAS on behalf of syndicates at Lloyd's.

The coverage was designed to fund up to $250,000 in legal expenses associated with contesting denials of insurance claims brought under other commercial insurance policies. (See NU, July 7, 2008, page 8 or http://bit.ly/b84f2n.)

“The producer who brought it to us was confident that it would be a huge wave, but at the end of the day, brokers felt uncomfortable selling a policy that indicated that the other policies they'd sold might not be adequate,” Mr. Robin said.

“We've had a few recent inquiries to see if we should approach it by [selling directly] to risk managers. So it's sort of on our shelf,” he said.

“With any new product, you want to write enough so you're not being selected against. That one has been on the shelf long enough that we're suspicious when people are shopping for it,” he said.

NAS Insurance, which is celebrating its 35th year in business in 2010, has had tremendous success with other programs, including MEDEFENSE–an endorsement to physicians' medical malpractice policies.

Special Reports /

Seller Resistance Puts Claims Dispute Insurance On The Shelf

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