New Mexico Administrative Code
Title 16 - OCCUPATIONAL AND PROFESSIONAL LICENSING
Chapter 61 - REAL ESTATE BROKERS
Part 5 - ERRORS AND OMISSIONS INSURANCE
Section 16.61.5.9 - TERMS OF COVERAGE

A. coverage of all acts for which a real estate license is required, except those illegal, fraudulent or other acts which are normally excluded from such coverage;

B. an annual premium not to exceed the amount set by statute 61-29-4.2B NMSA 1978;

C. that the coverage cannot be cancelled by the insurance carrier except for non-payment of the premium or in the event a broker becomes inactive or has their license revoked or an applicant is denied a license;

D. pro-ration of premiums for coverage which is purchased during the course of the calendar year but with no provision for refunds of unused premiums;

E. not less than $100,000 coverage for each licensed individual and entity per covered claim regardless of the number of brokers or entities to which a settlement or claim may apply;

F. an aggregate limit of $500,000 per licensed individual or entity;

G. a deductible amount for each claim of not more than $1,000 per claim and no deductible for legal expenses and defense;

H. payment of claims by the provider shall be on a first dollar basis and the provider shall look to the insured for payment of any deductible;

I. the obligation of the insurance carrier to defend all covered claims with payment of defense costs outside of policy limits;

J. coverage of a broker's use of lock boxes which may include a sublimit of not less than $5,000 per claim for property damage or loss of use of property arising from a lock box claim;

K. the ability of a broker, upon payment of an additional premium, to obtain higher or excess coverage or to purchase additional coverage from the insurance provider as may be determined by the provider;

L. that coverage is individual and license specific and will cover the associate broker regardless of changes in qualifying broker;

M. an extended reporting period of not less than 365 days;

N. a conformity endorsement allowing a New Mexico resident broker to meet errors and omissions insurance requirements for an active license in another group mandated state without the need to purchase separate coverage in that state.