The State of Colorado, Boards of Real Estate Brokers (REB), Real Estate Appraisers (APPR) and Mortgage Loan Originators (MLO) are seeking one qualified insurance company to provide Errors and Omissions insurance for all its licensees in accordance with the following: 2.1. Real Estate Brokers § 12-10-204, C.R.S. Errors and omissions insurance required – rules . Editor’s note: This section is similar to former §12-61-103.6 as it existed prior to 2019. Every licensee under this part 2, except an inactive broker or an attorney licensee who maintains a policy of professional malpractice insurance that provides coverage for errors and omissions for their activities as a licensee under this part 2, shall maintain errors and omissions insurance to cover all activities contemplated under parts 2 to 6 of this article 10. The division shall make the errors and omissions insurance available to all licensees by contracting with an insurer for a group policy after a competitive bid process in accordance with article 103 of title 24. A group policy obtained by the division must be available to all licensees with no right on the part of the insurer to cancel a licensee. A licensee may obtain errors and omissions insurance independently if the coverage complies with the minimum requirements established by the division. If the division is unable to obtain errors and omissions insurance coverage to insure all licensees who choose to participate in the group program at a reasonable annual premium, as determined by the division, a licensee shall independently obtain the errors and omissions insurance required this section. The division shall solicit and consider information and comments from interested persons when determining the reasonableness of annual premiums. The division shall determine the terms and conditions of coverage required under this section based on rules promulgated by the commission. The commission shall notify each licensee of the required terms and conditions at least thirty days before the annual premium renewal date as determined by the commission. Each licensee shall file a certificate of coverage showing compliance with the required terms and conditions with the commission by the annual premium renewal date, as determined by the division In addition to all other powers and duties conferred upon the commission by this article 10, the commission shall adopt such rules as it deems necessary or proper to carry out the provisions of this section. Rule 3.9. Errors and Omissions Insurance Pursuant to section 12-10-204, C.R.S., every Active Broker, including Brokerage Firms with more than one (1) Broker, must have in effect a policy of errors and omissions insurance to cover all acts requiring a License. The Division must enter into a contract with a qualified insurance carrier to make available a group policy of insurance (“Commission Insurance Policy”) under the following terms and conditions: The insurance carrier is licensed or authorized by the Colorado Division of Insurance to write policies of errors and omissions insurance in this State.
