Exceptions to coverage

Except as provided in this section, coverage may not exclude claims brought against the insured licensee arising out of an act or failure to act by the licensee when performing a professional service for which a real estate license is required. Coverage may limit or exclude claims brought against a licensee which arise as follows: 1. Out of claims or suits 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 contract or agreement, except for liability the insured would have had in the absence of such agreements; 3. From any criminal, dishonest, actual fraud, or willful act or omission. This exclusion does not apply to any insured person who did not personally participate in committing such an act or omission and who, upon having knowledge of the act or omission, reported it; 4. From unlawful discrimination committed by or for the insured person; 5. From fines or penalties imposed by law; 6. From failure to maintain any type or amount of insurance for managed property; 7. From bodily injury, personal injury, advertising injury, or property damage; 8. From related business activities for which a license is not required under this chapter; 9. From involvement in any real estate investment contract or syndication as a partner, joint venturer, or underwriter; 10. From hazardous materials, nuclear materials, or pollutants; 11. From prior wrongful acts; 12. From management or sale of property in which the insured or spouse has more than a ten percent financial or ownership interest. This exclusion does not apply for one year from the date a property is acquired under a guaranteed sale listing contract if the property is listed for sale during that entire period; 13. From any violation of the Securities Act of 1933, as amended through July 1, 1993, or the Securities Exchange Act of 1934, as amended through July 1, 1993, or any state blue sky or securities law or similar state or federal statutes; or 14. Other standard exclusions that are typical in the professional liability insurance industry may be permitted, subject to the approval of the North Dakota real estate commission.