E
& O Information
All active licensees (broker,
salesperson, corporation, LLC, partnership, etc.) must carry
uninterrupted E & O insurance coverage in Iowa. (An
inactive license is a broker or salesperson whose license is on
file with the Real Estate Commission on inactive status and
during which time the licensee is precluded from engaging in any
acts that require an active real estate license. A firm,
partnership, LLC, etc. can not be placed on inactive status.)
Proof of coverage
must be provided with all new applications, when reactivating an
inactive license to active status if the license has been
inactive for more than 20 days, and if selected for a random E &
O audit by the Commission.
The group coverage
insurance policy selected by the Commission is with
Rice Insurance
Services Company, LLC. (Importance
of Maintaining Continuous E & O Coverage,
E & O Considerations if Going Inactive,
How Changing Firms May Affect Your E & O.) While you are not required to
obtain coverage from Rice, before obtaining coverage with another
carrier be sure to read
Chapter 19 of Administrative Rules 193-E to understand the
requirements of coverage.
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