193E—19.3(543B) Other coverage. Licensees are not mandated to purchase insurance coverage through the group policy selected by the commission and may obtain errors and omissions coverage independently if the coverage contained in the policy complies with the following:
	19.3(1) For active individual licensees, all provisions of Iowa Code section 543B.47 apply.
If the other coverage is an individual policy, it is each licensee’s responsibility to provide proof of independently carried insurance coverage to the Iowa real estate commission when needed.
	19.3(2) For all active partnerships and corporations, otherwise known as firms, all provisions of Iowa Code section 543B.47 apply.
	a. 	If the other coverage is an individual policy covering the firm, it is the designated broker’s responsibility to provide proof of the firm’s independently carried insurance coverage to the Iowa real estate commission when needed.
	b. 	If the other coverage is an umbrella type policy covering the firm and all licensees assigned that perform real estate activities, it is the responsibility of the designated broker of the firm to provide a list of licensees assigned to the firm that are covered under the firm’s insurance policy to the Iowa real estate commission when needed.
	19.3(3) For sole-proprietor single license brokers, all provisions of Iowa Code section 543B.47 apply.
	a. 	If the broker’s other coverage is an individual policy, it is each licensee’s responsibility to provide proof of the independently carried insurance coverage to the Iowa real estate commission when needed, as provided in subrule 19.3(1).
	b. 	If the other coverage is an umbrella type policy covering the broker and all licensees assigned that perform real estate activities, it is the responsibility of the broker to provide a list of licensees assigned to the broker that are covered under the broker’s insurance policy to the Iowa real estate commission when needed.
	19.3(4) For independently carried individual type coverage, the following apply:
	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. 	The maximum deductible for an individual policy for damages and defense, each licensee, and each claim is not more than the deductible of the commission group policy for the current policy term.
	19.3(5) For firms and sole-proprietor brokerages with independently carried firm umbrella type coverage, the following apply:
	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 aggregate limit is:
	(1)	Not less than $250,000 for a broker or firm with two through ten licensees;
	(2)	Not less than $500,000 for a broker or firm with 11 through 40 licensees;
	(3)	Not less than $1,000,000 for a broker or firm with 41 or more licensees.
	d. 	There is no maximum deductible limit for firm umbrella type coverage policy.
	e. 	If a firm size change or a sole-proprietor brokerage size change results in a higher aggregate minimum criteria, that firm or broker corrects the deficiency within one year, or the next renewal term of the insurance policy, whichever comes first.
	19.3(6) To comply with the provisions of the Iowa errors and omissions law, if other independently carried insurance is provided, as proof of errors and omissions coverage for individual or firm umbrella type coverage, the other insurance carrier agrees to either a noncancelable policy, or provides a letter of commitment to notify the Iowa real estate commission 30 days prior to the intention to cancel the policy.
	19.3(7) Whenever commission criteria, coverage, or limits change, the commission provides a reasonable transition period to allow the licensee or firm with other coverage the opportunity to change carriers or coverage to comply with all criteria and limits, providing the present policy was in effect and in compliance with all prior criteria. The licensee or firm corrects the deficiency within one year, or not later than the next renewal term of the insurance policy, whichever comes first.
	19.3(8) It is the responsibility of each individual licensee to notify the commission when changing insurance status, coverage, or provider when necessary or when requested.
	19.3(9) It is the responsibility of the designated broker of the firm to notify the commission when changing insurance status, coverage, or provider when necessary or when requested.
	19.3(10) Self-insurance does not comply with the provisions of the Iowa errors and omissions insurance law.
[ARC 7781C, IAB 4/17/24, effective 5/22/24]