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Part 1601 Chapter 9: Errors and Omissions Insurance Coverage Rule 9.1 Administration
- Invitations to bid on the Errors and Omissions coverage shall be by advertisement published in the appropriate newspaper having statewide coverage.
- Selection and approval of the Errors and Omissions Insurance carrier shall be by Commissioners utilizing consultants or committees as deemed appropriate by the Commission.
- Upon approval of the carrier, invoices shall be sent via First Class Mail to all licensees; including companies and corporations; along with the necessary information describing the various available coverages, the period of coverage and the minimum requirements for independent coverage if desired by a licensee.
- Coverage shall be a twelve (12) month period beginning October 1, 1994 and continuing thereafter on twelve-month basis.
- Premiums shall be collected by the carrier or the Commission, at the Commission’s discretion.
- The Commission may maintain computer or written records as required for accurate documentation and administration of this program.
Miss. Code Ann.§73-35-35
Rule 9.2 Licensee Status
- Active licensees not submitting the required premium or providing the required proof of acceptable independent coverage within 30 days after the due date of the premium shall be placed automatically
on inactive status at the end of the 30-day period.
- Inactive licensees will not be required to pay the premium until changing to active status and the premium will be assessed on a pro rata basis. However, inactive licensees will be invoiced at the beginning of the policy period. They may pay the full premium at that time if they desire.
- New licensees will be given notice when their license is issued to provide proof of coverage within 30 days of the issuance of license or pay the premium specified on a pro rata basis. Failure to do so will result in their license being changed to inactive status.
Miss. Code Ann.§73-35-35
Rule 9.3 Independent Coverage
- Licensees having independent coverage shall submit proof of coverage by the beginning of the policy period as set forth above. Any deficiency in supplying proof of coverage must be corrected within no more than 30 days after the beginning of the policy period. Proof of coverage shall be by a “Certificate of Insurance” provided by the independent insurance carrier.
- Minimum requirements of independent coverage shall be:
- Coverage must be for all activities for which a real estate license is required under this Chapter.
- A per claim limit is not less than $100,000.00.
- The deductible is not more than $2,500.00 per licensee, per claim, for any damages and the deductible is not more than $1,000.00 per licensee, per claim, for defense costs.
- The independent insurance carrier shall agree to a noncancelable policy or provide a letter of commitment to notify the Commission 30 days prior to intention to cancel.