Section 230-RICR-30-20-2.28 - Errors and Omission InsuranceA. In accordance with R.I. Gen. Laws § 5-20.5-25, the Department establishes the following minimum requirements for coverage contained in a licensee's errors and omissions insurance policy: 1. In the case of an individual licensee, the insurance shall be in an amount for each claim of at least fifty thousand dollars ($50,000.00) and in an aggregate amount of at least one hundred fifty thousand dollars ($150,000.00).2. In the case of a principal broker's blanket policy for his or her licensees, a brokerage, the minimum coverage shall be:a. In an amount for each claim of at least fifty thousand dollars ($50,000.00) multiplied by the number of individual licensees employed by or associated with the principal broker, and in an aggregate amount of at least one hundred fifty thousand dollars ($150,000.00) multiplied by the number of individual licensees employed by or associated with the principal broker; orb. In an amount sufficient to provide coverage at a level of at least three hundred thousand dollars ($300,000.00) for each claim with an aggregate top limit of liability for all claims of at least one million dollars ($1,000,000.00) during any one (1) year.3. The insurance shall cover negligence, wrongful acts, and errors and omissions committed by the licensee. Where a principal broker's policy applies, the insurance shall only cover negligence, wrongful acts, and errors and omissions committed by the licensee while affiliated with the principal broker.4. The insurance required by R.I. Gen. Laws § 5-20.5-25 may provide that it does not apply to any dishonest, fraudulent, criminal, or malicious act or omission of the insured licensee.B. Cancellation or any other interruption in required insurance coverage shall require the licensee to cease any real estate activities requiring licensure immediately until such time as the licensee is in compliance with R.I. Gen. Laws § 5-20.5-25.C. A licensee must notify the Department within five (5) business days if his or her insurance coverage is canceled or otherwise interrupted. Failure to provide the required notice to the Department shall subject the licensee to disciplinary action pursuant to R.I. Gen. Laws § 5-20.5-14.230 R.I. Code R. 230-RICR-30-20-2.28
Amended effective 11/27/2019
Amended effective 5/1/2021
Amended effective 2/21/2022