Provide approximate percentages of professional services. Must total 100%. Indicate all services that you provide. (Note: LPOA = Limited Power of Attorney)

This question helps the insurance carrier understand what your practice actually does day to day. Some services draw more underwriting scrutiny than others, such as market timing or selling products outside a financial plan. By understanding how you allocate your time, the underwriter can build a risk profile of your practice and evaluate your firm's potential exposure to Errors and Omissions (E&O) claims.

This question requires you to categorize the time you spend on various professional services. Below is a breakdown of each category.

• Modular/Comprehensive Financial Planning: Creating tailored financial plans, either for specific areas (modular) or holistically (comprehensive).
• Divorce Financial Consulting: Advising clients on the financial aspects of a divorce.
• Discretionary Asset Management (LPOA): Managing client assets with a Limited Power of Attorney (LPOA), allowing you to execute trades without prior client approval for each trade.
• Non-Discretionary Asset Management (LPOA with Prior Consent): Managing client assets but requiring client consent before executing each trade.
• Asset Monitoring (No LPOA to Direct Trades): Reviewing client portfolios and making recommendations without having the authority to execute trades yourself.
• Product Sales Based On Financial Plan: Selling financial products (e.g., insurance, annuities) that are recommended as part of a formal financial plan.
• Product Sales Not Based On Financial Plan: Selling financial products independent of a comprehensive plan, which can carry higher suitability risks.
• Publish Newsletters for Subscription or Fee: Creating and selling financial or investment newsletters.
• Investment Management or Pension/Benefit Consulting: Managing investments or consulting for institutional clients, such as pension plans.
• Hourly Advice: Providing financial or investment advice on an hourly basis for specific issues.
• Wrap Accounts: Managing accounts where clients pay a single bundled fee for advisory, brokerage, and other services.
• Tax Preparation: Preparing tax returns or providing tax-related advice.
• Seminars/Education: Conducting educational seminars or workshops on financial topics.
• Third Party Pension Administration: Administering pension or retirement plans, often involving record-keeping and compliance support.
• Timing Services: Providing advice on when to buy or sell based on market trends, which is often speculative and high-risk.
• Third Party Money Managers: Selecting or overseeing third-party managers for client assets, acting as an intermediary.
• Other: Any professional service not listed above.

To answer this question, you must estimate the percentage of your professional time you dedicate to each of the service categories listed above.

• Estimate Your Time: Think about your typical work week or month and allocate your time across the different services.
• Categorize Carefully: Use the definitions provided to place your activities in the correct category.
• Total Must Be 100%: The sum of all percentages you provide must equal exactly 100%.
• Use "Other" if Necessary: If a service you provide isn't listed, allocate the time percentage to "Other" and be prepared to provide a clear description.

An approximate breakdown is acceptable, but it should be a reasonable reflection of how you spend your time.

• Pitfall: Not ensuring the percentages add up to 100%.
  • Double-check your math before finalizing your answer. An incorrect total will require the application to be corrected.
• Mistake: Mis-categorizing services.
  • Be clear on the difference between related but distinct services, such as Discretionary vs. Non-Discretionary management. Carriers look at these differently, and some have a strong preference one way or the other, so the split needs to be accurate.
• Pitfall: Hesitating to disclose a high allocation to higher-risk services.
  • You must provide a transparent and accurate breakdown of your time. Hiding a large allocation to a service like "Timing Services" could lead to a claim being denied in the future.