Sec. 12 AAC 02.520 - Exceptions to coverage

ยง 12 AAC 02.520. Exceptions to coverage

Except as provided in this section, the master errors and omissions insurance policy may not exclude coverage for claims brought against the insured licensee arising out of a wrongful act by the licensee when performing a professional service for which a real estate license is required. The policy may limit or exclude coverage for claims brought against a licensee that arise as follows:

(1) out of claims or lawsuits made or brought by any insured person against any other insured person within the same firm or from compensation disputes between licensees;

(2) out of loss assumed under a contract or an agreement, except for liability the insured would have had in the absence of the agreements;

(3) from a criminal, dishonest, fraudulent, or intentional act or omission; this exclusion does not apply to an insured person who did not personally participate in committing the act or omission and who, upon having knowledge of the act or omission, reported it to the Real Estate Commission, or appropriate law enforcement authorities;

(4) from unlawful discrimination committed by or for the insured person;

(5) from fines or penalties imposed by a tribunal or other governmental agency;

(6) from bodily injury, personal injury, advertising injury, or property damage;

(7) from related business activities for which a license is not required under AS 08.88;

(8) from the presence of or the actual, alleged, or threatened discharge, dispersal, release, or escape of hazardous materials, nuclear materials, or pollutants;

(9) from prior wrongful acts unless specific prior wrongful acts coverage is provided;

(10) from any violation of 15 U.S.C. 77 a - 77aa (Securities Act of 1933) or 15 U.S.C. 78 a - 78mm (Securities Exchange Act of 1934) or any state blue sky or securities law or similar state or federal statutes; or

(11) other standard exclusions that are typical in a professional liability insurance policy and that have been approved by the director of insurance under AS 21.42.

(12) from the insolvency of an insured person;

(13) from any injury or damage that the insured had reason to expect; or

(14) from the conversion, misappropriation, commingling, or defalcation of funds or other property.

(Eff. 12/4/2011, Register 200; am 3/25/2017, Register 221, April 2017)

Authority:AS 08.88.172

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