Iowa Administrative Code
Agency 193E - REAL ESTATE COMMISSION
Chapter 19 - REQUIREMENTS FOR MANDATORY ERRORS AND OMISSIONS INSURANCE
Rule 193E-19.2 - Insurance requirement-general
Current through Register Vol. 46, No. 19, March 20, 2024
The group coverage insurance policy selected by the commission must be approved by the Iowa insurance division. As a condition of licensure under Iowa Code chapter 543B, all active real estate licensees shall submit evidence of compliance with the mandatory errors and omissions insurance requirement when required.
(1) Who shall submit plan of coverage. The following persons must submit proof of insurance when required or when requested:
(2) Inactive status. Individuals whose licenses are on inactive status as defined in Iowa Code section 543B.5(12) are not required to carry errors and omissions insurance.
(3) Territory. All resident Iowa licensees shall be 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 shall not be 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 requirements of the group policy to be issued to the Iowa real estate commission including, as named insureds, all licensees who have paid the required premium:
f The contract of insurance shall pay, 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.
(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 at other than renewal and insured by the state selected program shall be subject to a pro-rata premium.