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Agreement

Colorado Real Estate Licensee Errors & Omissions (E&O) Group Program

Administered by Rice Insurance Services Company, LLC (RISC) and

Issued by Continental Casualty Company

 

If you are currently enrolled in the Colorado Real Estate Commission’s (the “Commission’s”) group policy, your coverage expires January 1, 2016.  Failure to timely obtain or renew coverage may lead the Commission to inactive your license and assess fines and penalties.  

The Colorado Real Estate Commission (the “Commission”) selected RISC to provide the state group E&O insurance policy for real estate licensees, which is issued by Continental Casualty Company, a CNA insurance company.  The program exceeds state requirements and provides the required limits of $100,000 per claim, up to $300,000 aggregate, per licensee with a $1,000 deductible for damages and no deductible for claim expenses.

Colorado law requires that all active individual real estate licensees carry and maintain E&O insurance to cover all licensed activities.  Active licensed real estate companies that (1) employ licensees in addition to the responsible broker and (2) are organized as corporations, limited liability companies, or partnerships are also required to carry E&O insurance.  Real estate firms that are sole proprietorships or that do not employ licensees other than the responsible broker are not required to carry E&O insurance but may choose to do so (the responsible broker is required to maintain individual E&O coverage).  Before activation of a license, a prospective licensee must obtain insurance coverage.  Licensees may purchase insurance outside of the state group program, provided the coverage complies with state minimum requirements and proof of coverage is filed with the Commission.  Once you enroll in our program, we will provide the appropriate notification to the Commission.  

Please have the following information ready to proceed with enrollment:

  • Active Individual Licensees: We will need your license number and type. You may verify your information on the Commission’s website at https://apps.colorado.gov/dre/licensing/Lookup/LicenseLookup.aspx.  We cannot verify coverage to the Commission if you do not provide the correct license number and license type.
  • Active Firm Licensees: We will need your firm’s license number and type. You may verify your firm’s information on the Commission’s website at https://apps.colorado.gov/dre/licensing/Lookup/LicenseLookup.aspx.  We cannot verify coverage to the Commission if you do not provide the correct license number and license type.
  • New Individual Licensees: We suggest you contact your employing broker to verify that your company participates in the group program before enrolling. A license number is not required to enroll, but you will not have coverage under the policy until you have been issued an active real estate license. If you have not been issued a license number, check the Pending box when the license number is requested.
  • New Firm Licensees:  A license number is not required to enroll, but your firm will not have coverage under the policy until it has been issued an active real estate license. If your firm has not been issued a license number, check the Pending box when the license number is requested. 

You must have a PDF reader (such as Adobe Acrobat Reader or Foxit PDF Reader) to download your certificate of coverage upon completion of your online enrollment. If you do not already have a PDF reader, please download one prior to online enrollment. 

Please review and agree to the following important information: 

What Is and Is Not Covered:  We urge all licensees to review a sample policy, including the Exclusions section.  A sample policy is available on our website, www.risceo.com, or by calling us toll-free at 1-800-637-7319, ext. 1, and requesting one.  

This is a Claims-Made-and-Reported Policy

  • There is no coverage for claims first made before the beginning or after the end of your individual policy period. If you have any knowledge of a claim; potential claim; or any act, error, omission, fact, or situation that may give rise to a claim against you or your company, it must be reported in writing immediately to your insurance carrier before your current policy period expires.  Failure to do so may jeopardize any coverage that would have otherwise been available. 
  • To report a claim under the group policy, you must send us written notice of the claim and a notice of claim form, available on our website or by calling us and requesting one.
  • There is no coverage for claims that arise after the policy expires unless an extending reporting period (ERP) is in place.  However, claims often arise years after the subject transaction occurred.  If you are not renewing coverage for any reason, including inactivating or retiring your license, you should consider purchasing a 1, 2, or 3 year ERP Endorsement, which extends the reporting date of your policy to apply to claims that arise within the ERP.  An ERP endorsement may be purchased within 90 days after the 2015 policy ends.  For licensees insured under the 2016 policy, ERP Endorsements will be available within 90 days of its end date.

You must have an Active Real Estate License to be Eligible to Purchase Insurance through this Program.

  • The policy provides that in the event a licensee’s license is placed on inactive status during a period in which the insured has paid the applicable premium, the policy will remain in effect for the remainder of the individual policy period, except there will be no coverage for acts, errors, or omissions that occur while the license is inactive.

Appraisal Coverage is ONLY Available to Individuals Who Have Both an Active Real Estate License and an Active Appraisal License.

  • Individuals who are licensed appraisers but do not have an active real estate license are not eligible to purchase insurance through this program.  However, they may be interested in purchasing insurance through Colorado’s state group appraiser E&O program, which we also administer.  More information about the appraiser group program is available on our website, www.risceo.com.

Territory

  • Licensees domiciled in Colorado are insured for professional services performed anywhere they hold an active real estate license, provided the services would require a license under Colorado law if they had been performed in Colorado.
  • Out-of-state licensees will be considered domiciled in Colorado if they reside within 50 miles of the Colorado state line and the license under which the majority of the licensee’s real estate transactions are performed is affiliated with a Colorado real estate office.
  • Licensees who are not actually or considered to be domiciled in Colorado are insured for professional services performed in only in Colorado.
  • In any event, the claim must be brought within the United States, its territories or possessions.

Importance of Timely Renewal and Continuous Coverage

  • Your “retroactive date” determines whether there is coverage for services performed before the policy’s effective date.  The retroactive date is the date you first obtained, and since which have continuously maintained, E&O insurance, with no gaps.  Even a one-day gap will result in loss of coverage for any services provided before and through the last day of the gap, even if insurance was in place at the time of the services and again when the claim arises. 
  • Colorado law requires that all active real estate licensees carry and maintain E&O insurance. Failure to maintain uninterrupted insurance is a violation of Colorado licensing law and may result in civil penalties and fines.
  • If you failed to enroll timely, call RISC immediately to see if you qualify to backdate your inception date to January 1, 2016, which may avoid a gap in coverage and loss of any previously-established retroactive date. This procedure does not remedy noncompliance with mandatory insurance laws.

Premium / Deductible

  • All premiums are fully earned at policy inception and no refunds are permitted after that date.
  • We accept Visa or MasterCard only for online enrollment.
  • A nonrefundable $5.00 convenience fee applies to online enrollment.
  • If your payment transaction is charged back for any reason or returned for nonsufficient funds, you will be responsible for payment of any resulting fees or penalties assessed by the credit card company and/or bank.
  • Licensees with an effective date after January may pay a prorated premium.
  • The deductible will be due in accordance with the policy.  You agree to reimburse the Company for any and all costs and expenses it incurs by employing a collection agency to collect any overdue deductible.

Additional information is available on our website or by calling us at (800) 637-7319, Ext. 1.

By continuing this quote, you agree to the terms of this agreement, including the following:  Applicant has reviewed and understands the information contained herein. Applicant declares that the above statements are true and that Applicant has not suppressed or misstated any material facts.  Applicant understands that it is a crime to knowingly provide false, incomplete, or misleading information to an insurance company for the purpose of defrauding the company.  Penalties include imprisonment, fines, and denial of insurance benefits.  Applicant agrees that this application shall be the basis of the contract with the Company and that coverage, if written, will be provided on a claims-made-and-reported basis.  Applicant understands and agrees that the completion of this application does not bind the Company to issue a policy. 

By continuing this quote, you agree to the terms of this agreement

Agree
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Policy Coverage

Effective Dates & License Type

Our current Colorado program expires January 1, 2016, and it’s time to enroll in the January 1, 2016 to January 1, 2017 group program. 

New Licensees: Choose the earliest date that your license will be placed on active status. 

Licensees Whose Current Coverage Will Expire January 1:  If possible, you should request an effective date that will allow you to maintain continuous coverage with no gap between policy periods (for example, if your current coverage expires January 1, you should request an effective date of January 1). If there is a gap in coverage (in other words, a break between policy periods), the policy will not apply to any professional services rendered before and through the last day of the gap, even if insurance was in place when the services were provided and again when the claim is made. 

You may not choose an effective date more than 30 days before the date of online enrollment. Requests to backdate the inception of your policy period up to 30 days will be considered, but the carrier reserves the right to refuse to backdate your individual inception date. If you failed to purchase coverage timely or within 30 days, call RISC immediately to see if you may qualify to backdate your individual policy period to January 1, which may avoid a gap in coverage and loss of your retroactive date. However, this procedure does not remedy noncompliance with mandatory insurance laws, so the Commission may still assess fines and penalties.

Licensees Switching from a Traditional Firm Policy or a Policy that Does Not Expire January 1:  If possible, you should choose the last date that you will have coverage under your current policy as your effective date.

You may not choose an effective date more than 30 days before the date of online enrollment. Requests to backdate the inception of your policy period up to 30 days will be considered, but the carrier reserves the right to refuse to backdate your individual inception date. If you have not had insurance through your prior policy for more than 30 days, call RISC immediately to see if you may qualify to backdate your individual policy period, which may avoid a gap in coverage and loss of your retroactive date.  If there is a gap in coverage (in other words, a break between policy periods), the policy will not apply to any professional services rendered before and through the last day of the gap, even if insurance was in place with another provider when the services were provided and in place under the group program when the claim is made.

If you have questions about the inception date, please contact RISC at (800) 637-7319, ext. 1, or policyadministrator@risceo.com.



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State License and Conformity Endorsements


License

Enrollment State Licenses

Please provide your license number for the state you are currently enrolling.



Conformity Endorsement State License Information – $ 20, regardless of number of states at time of issuance

The following states have group policies and require active individual (not firm) real estate licensees to maintain E&O insurance:  ID, IA, KY, LA, MS, ND, NE, NM, RI, SD, TN (TN conformity is not available to all licensees due to TN regulations), and WY.

The following states have group policies and require active firm real estate licensees to maintain E&O insurance:  ID, IA, and LA.

If you/your firm have an active real estate license in any of those respective states, you/your firm may be eligible* to purchase a conformity endorsement to conform your/your firm’s coverage under the Colorado policy to meet the other state’s insurance requirements for professional services performed in that state.

If you/your firm have an active license in another state that does not have specific real estate E&O insurance requirements, a conformity endorsement is not needed and would not impact your/your firm’s policy, since the purpose of a conformity endorsement is to conform your/your firm’s coverage under the Colorado policy to meet another state’s requirements.   Click here for more information.

*Eligibility Requirements:  You/your firm may only purchase this endorsement if

1.     You/your firm are domiciled in Colorado or

2.     If you/your firm are not domiciled in Colorado, you/your firm meet both of the following two requirements

a.     you/your firm reside within 50 miles of the Colorado state line and

b.     your/your firm’s principal real estate license is affiliated with a real estate office located in Colorado.

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Additional Endorsements

OPTIONAL ENDORSEMENTS:

Individual licensees are eligible for the optional endorsements below. Firm licensees may only purchase the conformity endorsement for other states that require E&O insurance for firm licenses and where the firm has an active real estate license. Additional information about optional endorsements is available on our website.

Sample endorsements are available by clicking here.

Endorsement Price
You must have both an active real estate license and an active appraisal license to qualify for this endorsement. Basic coverage under the policy excludes coverage for appraisal activities, so appraisers must purchase this endorsement to insure to appraisal activity. This endorsement is not available to, and the policy provides no coverage for, appraisers or appraiser trainees who do not have an active real estate license.
$ 140.00
Adds insurance for specified property management activities.
$ 25.00
• Environmental Endorsement: $10,000 for damages and claim expenses, combined, per covered environmental claim, up to an aggregate of $20,000 aggregate for all covered environmental claims. • Residential Personal Interest Endorsement: Provides coverage for claims relating to the sale or listing for sale of residential property under certain conditions. • Increased Sublimits for Fair Housing / Discrimination Claims Endorsement: Increases sublimits to $50,000 per covered fair housing / discrimination claim, up to a $50,000 aggregate (the basic policy automatically includes sublimits of liability of $30,000 per claim, up to a $30,000 aggregate, for fair housing and discrimination claims). • Increased Claim Expenses Coverage for Regulatory Complaints (Disciplinary Proceedings): Increases defense cost coverage to $5,000 per covered regulatory complaint, up to a maximum of $5,000 (the basic policy automatically includes defense costs of $2,500 per covered regulatory complaint, up to a maximum of $5,000).
$ 15.00
Increased Limits of Liability of $250,000 per claim / $750,000 aggregate.
$ 178.00
$ 213.00
Increased Limits of Liability of $500,000 per claim / $1,000,000 aggregate.
$ 293.00
$ 337.00
$ 
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Claims

Are you aware of a claim or potential claim that has not been reported to your current E&O carrier?
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Your Information

Enter the licensee's information as you wish it to appear on the certificate of insurance coverage.

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Review

This quote is only valid for the applicant.

  • Premium is fully earned upon the policy’s inception. No refunds are permitted after that date.
  • We accept Visa or MasterCard only for online enrollment.
  • A nonrefundable $5.00 convenience fee applies to online enrollment.
  • If your payment transaction is charged back for any reason or returned for nonsufficient funds, you will be responsible for payment of any resulting fees or penalties assessed by the credit card company and/or bank.
  • Licensees with an effective date after January may pay a prorated premium.

If you wish to enroll an additional licensee you may begin a new enrollment after you complete this transaction.

CNA is a service mark and trade name registered with the US Patent and Trademark Office. The program referenced herein is underwritten by Continental Casualty Company, CNA insurance company. This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the products and services offered. Only the policy can provide the actual terms, coverages, amounts, conditions and exclusions. This program is only available in Colorado. © 2016

Totals
Effective Date
License State
License Type
License Number
Basic Premium
$ N/A
Endorsements
Convenience Fee
$ N/A
Total
$ N/A