Terms Of Coverage

The group policy shall provide, at a minimum, the following 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.