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Mistakes happen, but a diligent CPA can take steps to prevent them.
Because of their often complex nature, insurance transactions provide fertile ground for mistakes. When reviewing these transactions, CPAs have a golden opportunity to protect clients from making potentially costly errors. With care, patience and knowledge of what to watch for, you can be a hero to both your clients and their insurance advisers.
Most insurance blunders occur on one--or both--ends of the transaction. Often agents are so focused on closing the deal, they forget to look at the big picture; that's where CPAs can help. Here are a few of the most common insurance errors and some recommended solutions.
Even before the insurance company issues a policy, there are several errors that can creep into the process.
Disclosing unnecessary information. As in any legal process, a client should provide information only if it has been specifically requested--without first hedging your bets. For example, say a client has offers from two insurance carriers. Company A gives a firm offer at a high price. Company B offers a lower price but asks for medical information company A has …