North Dakota Real Estate Commission’s Group Policy

Real Estate E&O Insurance Designed for North Dakota Licensees

Online Enrollment for January 1, 2024 to January 1, 2025 is NOW AVAILABLE!

The North Dakota 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 North Dakota licensees and exceeds state minimum requirements. The state group program offers affordable E&O insurance to each and every active licensee 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 North Dakota. 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

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 against the insured and first reported to the insurance company during the individual policy period. No coverage exists for claims first made before or after the individual policy period unless, and to the extent, an extended reporting period applies.

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

IMPORTANT NOTICE:
ALL ACTIVE BROKERS AND SALES PERSONS MUST APPLY TO RENEW THEIR LICENSE BY NOVEMBER 15, 2023 FOR THE LICENSE TO BE RENEWED ON A TIMELY BASIS FOR THE FOLLOWING LICENSE PERIOD.

Enroll Online: Please Note that we now have a new online enrollment system. Unless you have made a purchase online since this site went live on October 3, 2016 you DO NOT have a login.
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:

Individual Licensee Coverage

• Prorated Enrollment Form:  Purchase coverage to be effective after January 1, 2024*
• 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. To request to backdate coverage up to 90 days, use the Backdate Request Form. 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 North Dakota. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Why Choose RISC

Pricing & Available Coverage

Limits of Liability, January 1, 2024 to January 1, 2025 – $187
$100,000 per claim / $500,000 aggregate with $1,000 damage deductible and a $1,000 claim expense deductible. (Only one deductible applies if a claim involves multiple licensees with the same firm.)

• February – $171
• March – $156
• April – $140
• May – $125
• June – $109
• July – $94
• August – $78
• September – $62
• October – $47
• November – $31
• December – $16

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

Firm Excess Policies – Subject to underwriting approval
Firm excess policies (written by Continental Casualty Company) up to $3,000,000 limits available to firms whose licensees 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 (in addition to the environmental and discrimination sublimits provided in the underlying group program). All of the firm’s licensees must participate in the group program for the firm to qualify for an excess policy.

Unlimited Defense Costs – Automatically included
There is NO LIMIT on the amount of defense costs the carrier will pay in connection with covered claims. (There are limits on defense costs under the regulatory complaints and subpoena assistance coverage, which were not traditionally covered at all under many E&O policies.)

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

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 (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 – Automatically included
Provides coverage for the sale or listing for sale of the insured licensee’s primary residence, under certain conditions.

Security Breach Coverage – Automatically included
Up to $5,000 for costs incurred by the licensee’s firm if the firm is required to notify clients of a security breach when confidential commercial information or nonpublic personal information may have been disclosed or used in an unauthorized manner. The most the carrier will pay under this coverage is $5,000 per real estate firm, regardless of the number of licensees or incidents involved.

Subpoena Coverage – Automatically included
Payment of 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 licensees who also have active appraiser licenses, with no limitation on the amount of appraisal services provided.

Property Management Activities – Property Management Endorsement Available for $150
The policy insures specified property management services that are incidental to services that require a North Dakota real estate license, provided your income from leasing and property management is 50% or less of your annual revenue.

Licensees may also purchase a property management endorsement that adds specified property management services to the definition of professional services with no revenue restrictions.

Conformity for Other States that Require Real Estate E&O Insurance – $15
A conformity endorsement is only needed if you are actively licensed in another state that mandates E&O coverage. If you are domiciled in North Dakota and have an active real estate license in North Dakota and another state that requires real estate E&O insurance, you may purchase a conformity endorsement to conform your coverage under the North Dakota 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 North Dakota (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 North Dakota. If you are not actually domiciled in North Dakota or not considered to be domiciled in North Dakota under the policy provisions, the policy will only insure professional services rendered in North Dakota.

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 North Dakota. 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:

Does the basic policy offer unlimited defense costs?

RISC: Yes. There is no limit on the amount of defense costs under the basic policy (defense costs are limited under the regulatory complaints and subpoena assistance coverages, which were not traditionally covered at all under many E&O policies).

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 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 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 licensees that do not provide coverage for the firm’s vicarious liability for the licensee’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:

“I don’t think I can express how thankful we are at how quick all of you are to respond and what a great attitude you have. Makes my job a lot easier, I’ll tell you that much.” — M.E. (Support Specialist at large ND real estate firm)

“[Your] employees went out of their way to accommodate me . . . . Although I am just a single customer, [they] made me feel as though I were your most important customer. . . .I extend my compliments to you for having such fine people . . . . Rest assured, my E&O business will always be with Rice and I will continue to recommend you to anyone willing to listen. Most important, how lucky you are to have staff members . . . who are willing to go the “extra mile” to insured your customers stay your customers.”– J.A.Z. (NE, IA, WY, & CO licensee)

“It’s nice to know that the person on the other end is actually reading and analyzing the reports. Unfortunately, far too often, that seems to be the exception rather than the norm. So, we really appreciate your attention to this case and have enjoyed working with you throughout this process.”– A.M. (NE defense counsel regarding our claim handling) 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 North Dakota. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.