Iowa Real Estate Commission’s Group Policy

Real Estate E&O Insurance Designed for Iowa Licensees

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

Click Enroll or Renew to the left for further information

The Iowa Real Estate Commission selected RISC to continue 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 Iowa 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 Iowa. 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 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.

Always pay your premium on time to avoid a break in coverage, protect yourself from uncovered claims, and avoid penalties and fines.* It is our understanding that the Iowa Real Estate Commission (IREC) may issue substantial fines for failure to renew or obtain insurance on or before January 1. Please contact the IREC if you have any questions about their licensing requirements or penalties for failure to comply.

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:

Individual Licensee Coverage

• Individual Prorated Enrollment: 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.)

Firm Licensee Coverage

• Firm Prorated Enrollment: FormPurchase coverage to be effective after January 1*

*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 Iowa. 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 – $144
$100,000 per claim / $100,000 aggregate with no deductible

• February – $132
• March – $120
• April – $108
• May – $96
• June – $84
• July – $72
• August – $60
• September – $48
• October – $36
• November – $24
• December – $12

Increased Limits Available to Individual Licensees – Available for additional premium

• $250,000 per claim / $750,000 aggregate – $78
• $500,000 per claim / $1,000,000 aggregate. – $140

Firm Excess Policies – Subject to underwriting approval
Firm excess policies (written by Continental Casualty Company) up to $3,000,000 limits (subject to underwriting approval). To qualify, all the firm’s licensees must participate in the group program. The firm’s broker or officer must complete an application to obtain a quote for a firm 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 (there are limits on defense costs under the under the subpoena and regulatory complaints, which were traditionally not covered at all under many E&O policies).

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

Expanded Definition of Professional Services – Automatically included
The definition of professional services includes property management and services performed or advice given (including as a notary public and as a real estate consultant or counselor) in connection with licensed activity.

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).

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 Sublimits – Automatically included
Coverage $25,000 per discrimination claim / $25,000 aggregate (damages) with unlimited defense costs.

Escrow / Earnest Money Sublimits – Automatically included
Coverage $5,000 per escrow claim / $10,000 aggregate (damages) with unlimited defense costs.

Environmental Sublimits – Automatically included
$10,000 per environmental claim / $20,000 aggregate (damages) with unlimited defense costs.

Lock Box Sublimits – Automatically included
$5,000 per lock box claim / $10,000 aggregate (damages) with unlimited defense costs.

Regulatory Complaints Sublimits Endorsement – Automatically included
$2,500 per regulatory complaint / $5,000 aggregate (defense costs).

Primary Residence Coverage – Automatically included
Provides $100,000 per primary residence claim (involving the sale or listing for sale of the insured licensee’s primary residence) / $100,000 aggregate under certain conditions.

Security Breach Supplementary Payment Coverage – Automatically included
Reimbursement up to $5,000 for costs incurred by your real estate firm to provide required notification to clients of a security breach when confidential commercial information or nonpublic personal information may have been disclosed or used in an unauthorized manner (up to a maximum of $5,000 per real estate firm, regardless of the number of licensees or incidents involved). This is not coverage for the licensee’s or licensee’s family’s personal identity theft risk, which is not a professional liability risk and which is usually offered to individuals by personal insurance policy providers and credit card companies.

Subpoena Coverage – Automatically included
$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.

Appraiser Trainee Endorsement – $200 per appraiser trainee
For active real estate licensees who are also supervising appraisers to add specific appraiser trainees listed in the endorsement as insureds (must also purchase appraisal endorsement).

Contingent Bodily Injury / Property Damage Coverage – $25
$10,000 per bodily injury or property damage claim / $10,000 aggregate (damages and defense costs, combined), under certain conditions.

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 Coverage – $30
Adds $100,000 per residential personal interest  claim (involving the sale or listing of residential property owned by the licensee, the licensee’s spouse, or a company owned by the licensee) / $100,000 aggregate, 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 Iowa and have an active real estate license in Iowa and another state that requires real estate E&O insurance, you may purchase a conformity endorsement to conform your coverage under the Iowa 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 Iowa (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 Iowa. If you are not actually domiciled in Iowa or not considered to be domiciled in Iowa under the policy provisions, the policy will only insure professional services rendered in Iowa.

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 Iowa. 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 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 (defense costs are limited under the regulatory complaints and subpoena assistance coverages, which were not traditionally covered at all under most traditional 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 and your spouse’s relatives. This is important since buyers and sellers often rely on a trusted relative with a real estate license.

WATCH OUT FOR: Policies that exclude coverage for claims arising from transactions involving your or your spouse’s relatives.

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 farmland 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?

RISC: Yes. Excerpts from actual emails we have received:

“Rice Insurance Services has consistently responded to our needs in a timely and professional manner. . . . With the current atmosphere of frequent litigation, it is very important to our survival as a real estate service provider to have access to this level of quality when the need arises for insurance coverage.” — M.G., Iowa Broker

“I have had many occasions to work with RISC, and I always have received timely professional service. I have consistently found RISC’s management and staff to be friendly, cooperative and fair.” — J.J., General Counsel for large Iowa real estate firm

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 Iowa. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.