New Mexico Real Estate Commission’s Group Policy

Real Estate E&O Insurance Designed for New Mexico Licensees

January 1, 2024 to January 1, 2025 Policy Period – NOW AVAILABLE!

Click “Enroll or Renew” to the left for more information

The New Mexico Real Estate Commission selected RISC to provide the state group E&O insurance policy, which is issued by Continental Casualty Company, a CNA insurance company. The program is designed specifically for New Mexico brokers and exceeds state minimum requirements. The state group program offers affordable E&O insurance to each and every active broker by spreading the risk over a large number of insureds. Without the group program’s low premium, other carriers have no incentive to offer real estate E&O policies at affordable prices. In states without a group program, real estate E&O premiums may cost thousands of dollars and some licensees report being unable to obtain insurance at any price.

The program referenced herein is underwritten by Continental Casualty Company, a CNA insurance company. This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the products and services offered. Only the applicable policy can provide the actual terms, coverages, amounts, conditions, and exclusions, which may be subject to change without notice. In the event of a claim, the nature and extent of coverage is determined based upon the claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in New Mexico. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Sample Policies and Endorsements

1. 2024 Sample Policy

2. 2024 Optional Endorsements

3. 2024 Policy Features Flyer

4. Claims

5. Excess Coverage

Enroll or Renew

Thank you for considering our program. If you have questions about the program or how to purchase coverage, feel free to contact us or view our frequently asked questions. Please note we CANNOT accept any payment information over the phone.

NOTICE: This policy is a CLAIMS-MADE-AND-REPORTED policy and subject to its provisions, applies only to a claim first made during the policy period. No coverage exists for claims first made after the policy period unless, and to the extent, the extended reporting period applies.

January 1, 2024 to January 1, 2025 Policy Period

NOW AVAILABLE! Enroll Online: Enroll or Renew
Enroll by Mail: Mail your completed form with applicable premium by check or money order (payable to RISC) to either address below:

Do you have multiple real estate broker license numbers? Individuals with multiple real estate broker license numbers are only required to pay one premium for coverage.

Individual Licensee Coverage

• Prorated Enrollment Form: Purchase coverage to be effective after January 1*
• Endorsement Request Form: Request to add an endorsement to an individual policy if you already have insurance through the group policy. (If you have not yet purchased insurance through the group policy, you can purchase endorsements during enrollment.)

*IMPORTANT NOTICE ABOUT GAPS BETWEEN POLICY PERIODS AND LOSS OF PRIOR ACTS COVERAGE: If you have a break between the end of one policy period and the beginning of the next, you will lose prior acts coverage. The group policy does not apply to claims concerning professional services performed before your retroactive date (the date from which you have maintained continuous real estate E&O insurance). Therefore, if you have a gap in coverage, you will lose any previously-established retroactive date and your new retroactive date will be the effective date of the new policy. The new policy will not apply to claims involving professional services performed prior to the new policy period, even if coverage was in place at the time of the professional services and again when the claim is made. A break in coverage while you have an active license also violates state law and may result in regulatory penalties and fines. Even if your coverage is backdated to January 1, this procedure does not cure failure to comply with state law, so you may still be subject to state regulatory penalties and fines. Always pay your premium on time to avoid a break in coverage, protect yourself from uncovered claims, and avoid penalties and fines.

The program referenced herein is underwritten by Continental Casualty Company, a CNA insurance company. This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the products and services offered. Only the applicable policy can provide the actual terms, coverages, amounts, conditions, and exclusions, which may be subject to change without notice. In the event of a claim, the nature and extent of coverage is determined based upon the claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in New Mexico. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Why Choose RISC

Over $19 Million in defense costs and damages have been incurred by Continental Casualty Company (a CNA insurance company) on behalf of New Mexico brokers as of September 30,2020. RISC and the carrier share a commitment to their insureds to provide valuable coverage to New Mexico brokers. When shopping for insurance, it’s important to ask about the company’s experience and paid New Mexico claims. If a company is charging a very low amount, you may find the carrier doesn’t provide much coverage or pay many claims. Remember, even frivolous claims can result in thousands of dollars in defense costs.

Experience – The Rice family and their colleagues have specialized in state-mandated real estate E&O programs since 1989. We provide the group policies in 12 of the 14 states that have group programs and require real estate licensees to maintain insurance.

Consistency – We handle all aspects of the program, providing ease and consistency throughout the entire process, from obtaining coverage to claims resolution. With other providers, you may have to contact different companies for different issues, such as purchasing coverage and reporting claims.

Customer Service – We pride ourselves on excellent customer service and the positive remarks we receive from insureds, regulators, educators, attorneys, and others.

Claims Handling – Even if you don’t think a claim will be made against you, how a company responds when a claim is made is important, because anyone can be the victim of a frivolous claim or make an honest mistake. Some people assume insurance companies look for reasons to deny coverage. Our duty to find coverage where the policy supports it is our utmost concern.

Our adjusters specialize in real estate E&O claims. Being faced with a claim is often frustrating. Our adjusters handle each claim with knowledge and understanding.

Dedication – You can be confident we will be here for you after you purchase coverage. Unlike some providers, we won’t cancel your policy or refuse to renew your coverage simply because you have a claim. Even the most careful professional may make an honest mistake or be the victim of a frivolous claim, and we are here to help if it happens to you.

The program referenced herein is underwritten by Continental Casualty Company, a CNA insurance company. This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the products and services offered. Only the applicable policy can provide the actual terms, coverages, amounts, conditions, and exclusions, which may be subject to change without notice. In the event of a claim, the nature and extent of coverage is determined based upon the claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in New Mexico. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Pricing & Available Coverage

Limits of Liability, January 1, 2024 to January 1, 2025 – $349
$100,000 per claim / $500,000 aggregate with $1,000 damage deductible.  (Only one deductible applies if a claim involves multiple licensees with the same firm.)

• February – $320
• March – $291
• April – $262
• May – $233
• June – $204
• July – $175
• August – $145
• September – $116
• October – $87
• November – $58
• December – $29

Increased Limits Available- Available for additional premium
Increased limits available to individual brokers in the amounts of $250,000 per claim / $750,000 aggregate and $500,000 per claim / $1,000,000 aggregate.

Firm Excess Policies- Subject to underwriting approval
Firm excess policies (written by Continental Casualty Company) with $1,000,000 limits available to firms whose brokers are all insured through the group program. In addition to traditional excess coverage, our excess program automatically includes these key features at no additional cost: (1) Environmental Hazards Claims Coverage sublimits of $100,0000 per claim and in the aggregate for covered claims alleging failure to advise of the existence of pollutants, asbestos, radon, or lead and (2) Discrimination Claims Coverage sublimits of $100,000 per claim and in the aggregate for covered claims alleging discrimination in the performance or failure to perform professional services (this is in addition to the environmental and discrimination sublimits provided in the underlying group program). All of the firm’s brokers must participate in the group program for the firm to qualify for an excess policy.

First Dollar Defense- Automatically included
Applies WITH NO CONDITIONS to all covered claims.

Unlimited Defense Costs- Automatically included
There is NO LIMIT on the amount of defense costs the carrier will pay in connection with claims covered under the basic policy limits.

Expanded Definition of Professional Services– Automatically included
The definition of professional services includes property management; auctioning real property; and services as a real estate consultant or counselor, notary public, or escrow agent in connection with services as a licensed real estate broker.

Firm / Team / Franchise Coverage – Automatically included
Real estate firm, real estate team, and real estate franchisor included in the definition of insured for vicarious liability for covered claims.  We offer a franchise endorsement at no additional cost to add a specific franchise group that the insured licensee is affiliated with to the policy’s definition of real estate firm to satisfy many franchise groups’ franchise requirements (to request a franchise endorsement, contact us at info@risceo.com or 1-800-637-7319, Ext. 1).

Firm/Franchisor Coverage- Automatically included
Coverage Real estate firm and franchisor included in the definition of insured for vicarious liability for covered claims.

Spousal Coverage- Automatically included
Broker’s spouse or domestic partner considered an insured in certain situations.

Retroactive / Prior Acts Coverage- Automatically included
Insures prior transactions, provided you have maintained continuous real estate E&O insurance (from any provider) from the date of the professional services to the date the claim arises. Some policies do not apply to professional services performed while the insured was with a different carrier or associated with a different real estate firm.

Discrimination /Fair Housing Coverage –Automatically included
$25,000 per claim / $25,000 aggregate (damages) with no limit on defense costs.

Escrow / Earnest Money Coverage-Automatically included
$5,000 per claim / $10,000 aggregate (damages) with no limit on defense costs.

Environmental Coverage- Automatically included
$10,000 per claim / $20,000 aggregate (damages) with no limit on defense costs.

Lock Box Coverage- Automatically included
$5,000 per claim / $10,000 aggregate (damages) with no limit on defense costs.

Regulatory Complaints Coverage- Automatically included
$2,500 per regulatory complaint / $5,000 aggregate (defense costs)

Primary Residence Coverage Sublimits- Automatically included
$100,000 per primary residence claim / $500,000 aggregate (Damages) no limit on defense costs. Insures the sale or listing for sale of the insured broker’s primary residence, under certain conditions.

Subpoena Coverage– Automatically included
Up to $2,500 in attorneys’ fees to represent the insured in connection with a covered subpoena (maximum for all subpoenas $2,500).

Appraisal Endorsement- $200
Up to policy limits available to active real estate brokers who also have active appraiser licenses, with no limitation on the amount of appraisal services provided.

Appraisal Trainee Endorsement  – $200 per trainee
Insureds who purchase an appraisal endorsement may also purchase an appraisal trainee endorsement to add specific appraiser trainees listed in the endorsement as insureds.

Property Management Activities- Automatically included
The group policy insures leasing and property management services.

Developed/Constructed By Spouse Sublimits Endorsement  –  $250
Adds $100,000 per developed / constructed by spouse claim (involving the sale or listing for sale of residential property which is constructed or developed by the licensee’s spouse) / $100,000 aggregate, under certain conditions.

Residential Personal Interest Endorsement  – $50 Up to policy limits for claims concerning the sale or listing for sale of the licensee’s residential property (defined in the endorsement), under certain conditions

Conformity for Other States that Require Real Estate E&O Insurance- $20
A conformity endorsement is only needed if you are actively licensed in another state that mandates E&O coverage. If you are domiciled in New Mexico and have an active real estate license in New Mexico and another state that requires real estate E&O insurance, you may purchase a conformity endorsement to conform your coverage under the New Mexico policy to meet the other state’s requirements for professional services performed in that state.

Territory- Subject to Policy Provisions
If you are domiciled in New Mexico (either actually domiciled or considered to be domiciled by the policy provisions), the policy will insure professional services provided anywhere in the world, provided you are duly licensed in the state where services were provided, and the services would require a real estate license had they been performed in New Mexico. If you are not actually domiciled in New Mexico or not considered to be domiciled in New Mexico under the policy provisions, the policy will only insure professional services rendered in New Mexico.

The program referenced herein is underwritten by Continental Casualty Company, a CNA insurance company. This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the products and services offered. Only the applicable policy can provide the actual terms, coverages, amounts, conditions, and exclusions, which may be subject to change without notice. In the event of a claim, the nature and extent of coverage is determined based upon the claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in New Mexico. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Comparing Policies: What to Consider

What to Consider When Selecting an E&O Policy

Always Review the Actual Policy Provisions – The most accurate representation of what a policy covers is the policy itself. Some questions you might want to consider:

RISC WATCH OUT FOR

Does the basic policy provide first dollar defense?

RISC: Yes. There is no deductible for defense costs.

WATCH OUT FOR: Stringent requirements that must be followed to qualify for first dollar defense.

Does the basic policy offer unlimited defense costs?

RISC: Yes. There is no limit on the amount of defense costs under the basic policy

WATCH OUT FOR: Caps on the amount of defense costs an insurer will pay.

Does the basic policy insure transactions you do for relatives?

RISC: Yes. Our group policy applies to claims involving services performed for your parents; grandparents; siblings; aunts; uncles; cousins; children; and your spouse’s or domestic partner’s parents, grandparents, siblings, and children

WATCH OUT FOR: Policies that exclude coverage for claims arising from transactions involving parents; grandparents; siblings; aunts; uncles; cousins; children; or your spouse’s or domestic partner’s parents, grandparents, siblings, or children. This is important, since buyers and sellers often rely on a trusted relative with a real estate license.

Does the policy insure claims relating to all types of real property?

RISC: Yes. Our policy insures claims relating to professional services, regardless of the type of property involved.

WATCH OUT FOR: Limits on the type of property coverage applies to or additional premium for property other than residential. Even if you currently handle only residential transactions, consider whether you are willing to forgo an opportunity to work with commercial property or farm land or to risk not having coverage for a claim resulting from the transaction.

Does the policy insure your firm for its vicarious liability for your professional services?

RISC: Yes. Our policy insures covered claims alleging your firm’s vicarious liability for negligence in your professional services.

WATCH OUT FOR: Policies issued to individual brokers that do not provide coverage for the firm’s vicarious liability for the broker’s actions, which may leave the firm uncovered in the event of a claim.

Are insureds satisfied with the provider’s service?

Yes. Below are excerpts from actual emails we have received from New Mexico insureds:

“I can say, without any reservation, that in every situation I have encountered, RICE has demonstrated a consistent attitude of caring for their customer, the real estate broker. Many insurance companies I have dealt with take the position of defending their claim to premium ratio as primary with the practical needs of the practitioner being a distant second. Not so with RICE. They clearly understand the important balance between staying in business and simultaneously making life easy for the broker. I could not image running my risk management program without RICE and wholeheartedly endorse them.” — P.P. (former NM Real Estate Commissioner)

“As Managing Broker [for a large New Mexico real estate company], I have had occasion to work with various Professional Liability Errors and Omissions Insurance carriers over the past nineteen years. Rice Insurance Services stands out as delivering quality service at a reasonable price.”– S.B. (NM Managing Broker for large NM Real Estate Firm)

“I have worked with Rice Insurance since May 2005 both as a qualifying broker . . . and . . . as an associate broker. It has been a pleasure to work with a company who returns phone calls and gets your questions answered and information you need in a timely manner.”– L.C. (NM broker) Insurance providers who do not consider you their top priority.

WATCH OUT FOR: Insurance providers who do not consider you their top priority.

The program referenced herein is underwritten by Continental Casualty Company, a CNA insurance company. This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the products and services offered. Only the applicable policy can provide the actual terms, coverages, amounts, conditions, and exclusions, which may be subject to change without notice. In the event of a claim, the nature and extent of coverage is determined based upon the claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in New Mexico. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.