Wednesday, August 23, 2006
Financial advisers liable for LTC oversight
[Harley Gordon, J.D., "Financial Planners Risk Lawsuits for Failing to Recommend Realistic Plans for Long-Term Care," The Journal of Financial Planning, August 2005.]
Stephen Moses of The Center for Long-Term Care Reform reports in the latest LTC Bullet that financial advisers face significant risk if they do not adequately alert clients to the costs of LTC:
As long-term care planning becomes more and more important, the risk to financial advisors, including lawyers, financial planners, and insurance agents, of failing to cover it becomes much greater. If they carelessly neglect to advise their clients of the need to plan and insure for long-term care, they can be vulnerable to accusations of malpractice. And now it is starting to happen!
[Harley] Gordon's newsletter for his Certified in Long-Term Care graduates (CLTC E-Alert - Putting Advice in Writing, 8/15/2006) reports the following:
"The obvious has happened.
"A story in Registered Rep detailed the travails of a registered advisor who recommended long-term care insurance to his clients. The problem is that he did not put it in writing assuming the clients would take note. They didn't, but the children did. They sued the advisor for malpractice after both parents were diagnosed with Alzheimer's. The article made a number of points that are relevant to financial service professionals, first among them is that failure to discuss a plan for long-term care and protect the plan with long-term care insurance is grounds for professional malpractice. Other points addressed in this first rate article:
* Always put the advice in writing. The article stated that if the recommendation had been clearly stated in a letter, it is unlikely an action would have been filed.
* Check your E&O policy carefully. When the advisor put the claim in the carrier denied coverage claiming that although the policy would have covered an action brought by the clients there was a specific exclusion for third party plaintiffs, in this case the children who filed the suit.
"The full story, "Scary Story," by Janet Arrowood can be read here.
[Stephen Moses, "Its time to end welfare for the well-to-do," The Kansas City Kansan, 26 April 2006.
Stephen Moses, "Estate Recoveries Needed to Help Pay for Medicaid," The Wichita Eagle, 27 September 2005.
Stephen Moses, "Nursing home system in need of reform," The Pittsburg Morning Sun, 22 May 2005.]
Stephen Moses of The Center for Long-Term Care Reform reports in the latest LTC Bullet that financial advisers face significant risk if they do not adequately alert clients to the costs of LTC:
As long-term care planning becomes more and more important, the risk to financial advisors, including lawyers, financial planners, and insurance agents, of failing to cover it becomes much greater. If they carelessly neglect to advise their clients of the need to plan and insure for long-term care, they can be vulnerable to accusations of malpractice. And now it is starting to happen!
[Harley] Gordon's newsletter for his Certified in Long-Term Care graduates (CLTC E-Alert - Putting Advice in Writing, 8/15/2006) reports the following:
"The obvious has happened.
"A story in Registered Rep detailed the travails of a registered advisor who recommended long-term care insurance to his clients. The problem is that he did not put it in writing assuming the clients would take note. They didn't, but the children did. They sued the advisor for malpractice after both parents were diagnosed with Alzheimer's. The article made a number of points that are relevant to financial service professionals, first among them is that failure to discuss a plan for long-term care and protect the plan with long-term care insurance is grounds for professional malpractice. Other points addressed in this first rate article:
* Always put the advice in writing. The article stated that if the recommendation had been clearly stated in a letter, it is unlikely an action would have been filed.
* Check your E&O policy carefully. When the advisor put the claim in the carrier denied coverage claiming that although the policy would have covered an action brought by the clients there was a specific exclusion for third party plaintiffs, in this case the children who filed the suit.
"The full story, "Scary Story," by Janet Arrowood can be read here.
[Stephen Moses, "Its time to end welfare for the well-to-do," The Kansas City Kansan, 26 April 2006.
Stephen Moses, "Estate Recoveries Needed to Help Pay for Medicaid," The Wichita Eagle, 27 September 2005.
Stephen Moses, "Nursing home system in need of reform," The Pittsburg Morning Sun, 22 May 2005.]
Comments:
Post a Comment
