760 IAC 1-51-5 Errors and omissions policy requirement

Sec. 5. (a) All reinsurance intermediary-managers shall acquire and maintain an errors and omissions insurance policy with limits equal to those specified in subsection (b). (b) The policy coverage limits shall be two hundred fifty thousand dollars ($250,000) or twenty-five percent (25%) of the annual reinsurance premium managed by the reinsurance intermediary-manager, whichever is greater, except that mandatory policy limits under this subsection shall not exceed ten million dollars ($10,000,000). (c) The policy limits shall be adjusted accordingly on or before the license renewal of the reinsurance intermediary-manager each year. (d) Proof of such insurance shall be filed with the commissioner of the department of insurance at the time of the initial license application. (e) The insurer shall provide the department of insurance with appropriate documentation to show that the errors and omissions policy remains in force or that a new policy has been secured at each renewal.