193E—19.2(543B) Insurance criteria—general. The group coverage insurance policy selected by the commission is approved by the Iowa insurance division. As a condition of licensure, all active real estate licensees follow Iowa Code section 543B.47(1) regarding mandatory errors and omissions insurance.
	19.2(1) Who submits plan of coverage. The following persons submit proof of insurance when needed or when requested:
	a. 	Any active individual broker, broker associate, broker sole proprietor or salesperson.
	b. 	Any active firm.
	19.2(2) Inactive status. Individuals whose licenses are on inactive status as defined in Iowa Code section 543B.5(12) do not need to carry errors and omissions insurance as authorized by Iowa Code section 543B.47(1).
	19.2(3) Territory. All resident Iowa licensees are covered for activities contemplated under Iowa Code chapter 543B both in and out of the state of Iowa. Nonresident licensees participating under the state plan are not covered both in and out of the state of Iowa unless the state plan selected by the commission will cover participating nonresidents when involved in real estate activities in the nonresident state.
	19.2(4) Insurance form. Licensees may obtain errors and omissions coverage through the insurance carrier selected by the commission to provide the group policy coverage. The following are minimum criteria of the group policy to be issued to the Iowa real estate commission including, as named insureds, all licensees who have paid the necessary premium:
	a. 	All activities contemplated under Iowa Code chapter 543B are included as covered activities;
	b. 	A per claim limit is not less than $100,000;
	c. 	An annual aggregate limit is not less than $100,000;
	d. 	Limits are to apply per licensee, per claim;
	e. 	Defense costs are to be payable in addition to damages;
	f. 	The contract of insurance pays, on behalf of the insured person(s), liabilities owed.
	19.2(5) Contract period. The contract between the insurance carrier or program manager and the commission may be written for a one- to three-year period with the option to renew or renegotiate each year thereafter. The commission reserves the right to terminate the contract after written notice to the carrier at least 120 days prior to the end of any policy term and place the contract out for bid.
	a. 	Policy periods are not less than 12-month policy terms.
	b. 	The policy provides full and complete prior acts coverage.
	(1)	If the licensee purchased full prior acts coverage on or after July 1, 1991, that licensee continues to be guaranteed full prior acts coverage if insurance carriers are changed in the future.
	(2)	The retroactive date of the master policy is never later than July 1, 1991, for those that can provide proof of continuous coverage to that date.
	(3)	The retroactive date for each licensee is individually determined by the inception date of coverage and proof of continuous coverage to that date.
	(4)	The retroactive date for any new licensee who first obtains a license after July 1, 1991, is individually determined by the effective date of the license, the inception date of coverage, and proof of continuous coverage to that date.
	19.2(6) Any licensee insured in the state selected program whose license becomes inactive will not be charged an additional premium if the license is reinstated during the policy period.
	19.2(7) Any licenses issued other than at renewal and insured by the state selected program are subject to a pro-rata premium.
[ARC 7781C, IAB 4/17/24, effective 5/22/24]