Iowa Code r. 193E-19.2 - Insurance criteria-general
The group coverage insurance policy selected by the commission is approved by the Iowa insurance division. As a condition of licensure, all active real estate licensees follow Iowa Code section 543B.47(1) regarding mandatory errors and omissions insurance.
(1) Who submits plan of coverage. The
following persons submit proof of insurance when needed or when requested:
a. Any active individual broker, broker
associate, broker sole proprietor or salesperson.
b. Any active firm.
(2) Inactive status. Individuals whose
licenses are on inactive status as defined in Iowa Code section
543B.5(12) do
not need to carry errors and omissions insurance as authorized by Iowa Code
section 543B.47(1).
(3) Territory. All resident Iowa licensees
are covered for activities contemplated under Iowa Code chapter 543B both in
and out of the state of Iowa. Nonresident licensees participating under the
state plan are not covered both in and out of the state of Iowa unless the
state plan selected by the commission will cover participating nonresidents
when involved in real estate activities in the nonresident state.
(4) Insurance form. Licensees may obtain
errors and omissions coverage through the insurance carrier selected by the
commission to provide the group policy coverage. The following are minimum
criteria of the group policy to be issued to the Iowa real estate commission
including, as named insureds, all licensees who have paid the necessary
premium:
a. All activities contemplated under
Iowa Code chapter 543B are included as covered activities;
b. A per claim limit is not less than
$100,000;
c. An annual aggregate
limit is not less than $100,000;
d.
Limits are to apply per licensee, per claim;
e. Defense costs are to be payable in
addition to damages;
f. The
contract of insurance pays, on behalf of the insured person(s), liabilities
owed.
(5) Contract
period. The contract between the insurance carrier or program manager and the
commission may be written for a one- to three-year period with the option to
renew or renegotiate each year thereafter. The commission reserves the right to
terminate the contract after written notice to the carrier at least 120 days
prior to the end of any policy term and place the contract out for bid.
a. Policy periods are not less than 12-month
policy terms.
b. The policy
provides full and complete prior acts coverage.
(1) If the licensee purchased full prior acts
coverage on or after July 1, 1991, that licensee continues to be guaranteed
full prior acts coverage if insurance carriers are changed in the
future.
(2) The retroactive date of
the master policy is never later than July 1, 1991, for those that can provide
proof of continuous coverage to that date.
(3) The retroactive date for each licensee is
individually determined by the inception date of coverage and proof of
continuous coverage to that date.
(4) The retroactive date for any new licensee
who first obtains a license after July 1, 1991, is individually determined by
the effective date of the license, the inception date of coverage, and proof of
continuous coverage to that date.
(6) Any licensee insured in the state
selected program whose license becomes inactive will not be charged an
additional premium if the license is reinstated during the policy
period.
(7) Any licenses issued
other than at renewal and insured by the state selected program are subject to
a pro-rata premium.
Notes
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