Section 08.88.172. Errors and omissions insurance.

   (a) A person licensed as a real estate broker, associate real estate broker, or real estate salesperson shall, as a condition of licensing, carry and maintain errors and omissions insurance to cover activities for which licensing is required under AS 08.88.161.
   (b) The department shall establish by regulation the terms and conditions of the errors and omissions insurance required by this section, including
        (1) coverage requirements;
        (2) limits of coverage;
        (3) the maximum amount of premium to be charged licensees under a master errors and omissions policy under (d) of this section; and
        (4) the method for adjusting these amounts based on the Consumer Price Index.
   (c) A licensee may obtain the errors and omissions insurance required by (a) of this section by
        (1) obtaining a master insurance policy that may be made available to licensees by the commission; or
        (2) independently obtaining errors and omissions insurance that complies with the requirements established under (b) of this section.
   (d) The commission may
        (1) solicit bids for a master errors and omissions insurance policy for licensees that meets the minimum terms and conditions established under (b) of this section using a competitive sealed bid process under AS 36.30 (State Procurement Code); and
        (2) charge a licensee a reasonable administration fee to recover costs incurred in connection with the solicitation made under (1) of this subsection.
   (e) If the commission is unable to obtain a master errors and omissions insurance policy to insure licensees that meets the terms and conditions established under (b) of this section, the requirement that a real estate licensee carry and maintain errors and omissions insurance under AS 08.88.172 is void during the period that the commission is unable to obtain the insurance.
   (f) A licensee seeking to obtain or renew a license shall certify to the commission that errors and omissions insurance has been obtained. A licensee who elects to independently obtain errors and omissions insurance shall provide a certificate of coverage with the application to obtain or renew a license.

Authorities

8.88.071; 8.88.171; 8.88.172

Notes

Recent Bills that will modify this

SB 158 REAL ESTATE COMMISSION;BROKER LICENSING

Implemented As

12 AAC 02.510
12 AAC 02.520
12 AAC 02.530
12 AAC 02.540
12 AAC 02.550
12 AAC 02.560
12 AAC 02.590
12 AAC 64.600
12 AAC 64.610
12 AAC 64.620
12 AAC 64.630
12 AAC 64.640
12 AAC 64.650

References

12 AAC 02.510
12 AAC 02.530
12 AAC 02.540
12 AAC 02.590
12 AAC 64.600
12 AAC 64.610
AS 8.88.071 .071">Sec. 08.88.071. Duties and powers of the commission; grounds for disciplinary sanctions.
AS 8.88.171 .171">Sec. 08.88.171. Eligibility for license.
AS 8.88.172 .172">Sec. 08.88.172. Errors and omissions insurance.

History

(Sec. 5 ch 113 SLA 2008; am Sec. 4 ch 39 SLA 2016)