2009/2010 Kentucky Real Estate Commission

         Group Errors and Omissions Program

 $100,000 Limit Per Claim Per Insured Licensee / $1,000,000 Annual Aggregate Limit

 Administered by Rice Insurance Services Company, LLC

and Underwritten by Continental Casualty Company

Each real estate Licensee who is actively licensed in Kentucky shall, as a condition of licensing, carry and maintain errors and omissions insurance to cover all activities under their real estate license.  Each Licensee has the option of obtaining errors and omissions insurance independently, so long as the coverage complies with the minimum requirements established by the Kentucky Real Estate Commission (the Commission) and the Licensee obtains a "Certificate of Coverage" signed by an authorized agent or employee of the insurance carrier [(which shall be filed with the Commission in compliance with KRS 324.395 (6)]. 

Upon application for issuance or renewal of an active license, you must purchase insurance pursuant to the Commission Group Program or certify that you are in compliance with the insurance requirements of this chapter.  Principal brokers will receive information regarding enrollment for the Commission Group Program in the license renewal packet from the Commission. 

Enrollment for Errors and Omissions Insurance:  Rice Insurance Services Company, LLC (RISC) has an agreement with the Commission to provide its policy for Kentucky Licensees.  Continental Casualty Company, one of the CNA insurance companies, is the insurance carrier for the program. RISC's experience and excellent claims service (specializing in real estate E&O) combined with CNA's strong financial performance and ratings (rated "A" by A.M. Best) will provide a quality program for Kentucky Licensees.  If you wish to enroll in the group program, the one‑year premium payment is $117 per Licensee plus applicable tax and surcharge. Licensees purchasing coverage after April 1, 2009 may pay a prorated premium.  Late insurance payments may cause a break in coverage and/or noncompliance with the mandatory insurance requirement.                             

ACTIVE Licensees (brokers and salespersons) are REQUIRED to carry E&O insurance. INACTIVE Licensees are not required to have E&O insurance. However, Licensees with expiring policies who are placing their licenses inactive may want to purchase an Optional Extended Reporting Period Endorsement (see Extended Coverage information on web site).  Before activation or renewal of license, a Licensee is required to obtain insurance coverage.

Higher Limits Available:  Limits of $250,000 per Claim per Insured Licensee, with a $1,000,000 Annual Aggregate Limit, are available to individual Licensees.  Licensees whose real estate activity is at least 75% residential sales and who have no claims in the past five years may pay an additional premium of $60 to increase limits to $250,000.  Licensees whose real estate activity is less than 75% residential sales and/or who have had claims in the past five years may pay an additional $90 to increase limits to $250,000.  In addition, we offer a firm "excess" policy with limits at levels of $250,000, $500,000, or $1,000,000.  Information about higher limits for the firm is available.  The principal broker or officer of the firm must complete an excess application form in order to obtain a quote for firm excess coverage.  All Licensees of the firm are required to participate in the group program to qualify for firm excess coverage.

Kentucky Service for Kentucky Licensees:  RISC is located in Louisville, Kentucky and will provide the servicing (claims handling, policy issuance, marketing mailings, etc.) for our Kentucky program. The Kentucky-based management team of RISC specializes in handling programs in states with mandatory real estate E&O insurance requirements.

Any questions about our program should be directed to RISC. You may visit our website at www.risceo.com, call us at 800-637-7319, or write to us at P.O. Box 6709, Louisville, Kentucky 40206-0709. RISC looks forward to hearing from Kentucky Licensees and working with each and every one of you.

CNA is a service mark and trade name registered with the US Patent and Trademark Office.  The program referenced herein is underwritten by Continental Casualty Company, one of the CNA insurance companies.   This information is for illustrative purposes only and is not a contract.  It is intended to provide a general overview of the products and services offered.  Only the policy can provide the actual terms, coverages, amounts, conditions and exclusions.  This program is only available in Kentucky.   82008