Errors And Omissions Insurance Coverage

It shall be a requirement for an active licensee to carry errors and omissions insurance to cover all activities contemplated under the Tennessee Real Estate Broker License Act unless the Commission is unable to obtain coverage pursuant to T.C.A. § 62-13-112(g) which would void the requirement of coverage under the applicable contract period. (1) A licensee who places his license in an inactive or retired status is not required to carry errors and omissions insurance until such time as his license is activated. (2) New licensees, licensees who activate their license from an inactive or retired status, and licensees who reinstate their license from an expired status at a time other than the beginning of the licensing period shall pay a prorated premium in accordance with a schedule provided by the insurance provider. (3) The Commission shall perform random audits to assure that licensees have met the requirements of this rule. (4) Any independently obtained errors and omissions insurance policy shall, at a minimum, be issued upon the same terms and conditions as the policy obtained by the Tennessee Real Estate Commission pursuant to T.C.A. § 62-13-112, including, but not limited to, the limits of coverage, the permissible deductible, the permissible exemptions and the term of the policy. (5) Each errors and omissions insurance policy shall include, but is not limited to: the limits of coverage, each individual licensee’s name, the permissible deductible, the permissible exemptions, and the term of policy.