All active licensees licensed in accordance with the provisions of R.S. 37:1430, et seq., are mandated to carry errors and omissions insurance to cover all activities contemplated under this Chapter. See R.S. 37:1466. Errors and omissions insurance; mandatory for all licensees.
Initial or renewal licensees electing to obtain equivalent errors and omissions insurance coverage in lieu of the group policy shall submit one of the following Real Estate Errors and Omissions Insurance Independent Coverage Information forms before a license will be issued:
GROUP ERRORS AND OMISSIONS PROGRAM
(Click here to view a sample policy and endorsements.)
Rice Insurance Services Company, LLC ("RISC") has been awarded the Louisiana Group Errors and Omissions Insurance Program. Highlights of the program are listed below. The issuing company will be the Continental Casualty Company, one of the CNA insurance companies, rated "A" by A.M. Best.
- Premium - $190 ($183 premium + $7 transaction fee) for $100,000 per claim/$300,000 aggregate limits
- Deductible - $1,000 per claim for damages
- No deductible for defense of covered claim
- Allows up to 25% ownership/financial interest by licensee
- Primary residence coverage under certain conditions
- Prior acts coverage, provided the subject professional services were performed on or after the licensee's retroactive date
- $25,000 supplementary payment for damages and expense for claims arising out of Fair Housing Discrimination-subject to $1,000 deductible
- $5,000 per claim/$10,000 aggregate sublimit for damages for environmental claims (defense costs do not reduce available environmental sublimits)
- $5,000 per claim/$10,000 aggregate sublimit for property damage or loss of use of property resulting from property damage claims arising out of Lock Box Liability (defense costs do not reduce available lock box sublimits)
- $2,500 aggregate limit for attorneys fees to respond to a covered subpoena in a lawsuit relating to a transaction where the insured performed professional services
Optional Coverage By Endorsement
You may purchase additional coverage as separate endorsements to the policy. The following endorsements are available to individual licensees. Firm licensees are only eligible to purchase a conformity endorsement to other states that require that firm licensees maintain real estate E&O coverage and where the firm has an active real estate license. Please indicate your selection of endorsements on the supplementary enrollment form. Send the supplementary enrollment form with your check made payable to RISC.
A. Limited Claim Expenses Coverage Regulatory Complaints Endorsement - provides defense of any complaint to a real estate regulatory board or commission which arises from a negligent act, error or omission in the rendering of Professional Services that would otherwise be covered by the policy. Continental Casualty Company will pay Claim Expenses up to a maximum of $2,500.00 per claim/$5,000.00 Aggregate in defense of such complaint pursuant to this endorsement. The cost of this endorsement is $20.00.
B. Conformity Endorsement - If you have a real estate license in another state that has mandatory requirements for insurance, you may purchase a Conformity Endorsement to make your Louisiana policy conform to the requirements of that state. The cost of this endorsement is $20.00 regardless of the number of mandatory states listed on the endorsement.
C. Increased Limits of Liability
- $250,000.00 per claim/$750,000.00 total limits: Individual licensees may purchase $250,000.00/$750,000.00 total limits. Licensees whose real estate activity is at least 75% residential sales AND who have had no claims in the past 5 years may purchase for $289.00 total premium ($190.00 to LREC for group coverage + $99.00 to RISC for Increased Limits Endorsement).
- Licensees with residential sales contributing less than 75% of their total real estate activity and/or who have had claims in the past 5 years may purchase for $339.00 total premium ($190.00 to LREC for group coverage + $149.00 to RISC for Increased Limits Endorsement).
- $500,000.00 per claim/$1,000,000.00 aggregate: Individual licensees may purchase $500,000.00/$1,000,000.00 total limits. Licensees whose real estate activity is at least 75% residential sales AND who have had no claims in the past 5 years may purchase for $364.00 total premium ($190.00 to LREC for group coverage + $174.00 to RISC for Increased Limits Endorsement).
- Licensees with residential sales contributing less than 75% of their total real estate activity and/or who have had claims in the past 5 years may purchase for $427.00 total premium ($190.00 to LREC for group coverage + $237.00 to RISC for Increased Limits Endorsement).
Excess Program For Firms
Higher limits are also available on an underwritten basis for real estate firms domiciled in Louisiana. The principal broker or officer of the firm must complete an excess application form in order to be considered for this excess coverage. All Licensees associated with the firm must be insured under the group policy. This program is written by Continental Casualty Company and is not guarantee-issue; however, most Louisiana firms qualify for excess coverage. Please call RISC's toll-free number if you have any questions.
Send the basic premium to the Commission with your application. Do not send payments for optional coverage and/or higher limits to the Commission.
Contact Rice Insurance Services Company, LLC at:
(800) 637-7319 or (502) 897-1876 or email@example.com.
LREC AND PREMIUM PAYMENTS
The Louisiana Real Estate Commission accepts premium payments for the group errors and omissions insurance policy as a courtesy and convenience to licensees. The premiums are forwarded to the program administrator upon receipt and are not maintained by the Commission. Although it is our desire to assist you in any way that we can, questions about your coverage, or requests for policy documents, must be submitted directly to the program administrator. See Group Program Highlights above for contact information.