Kentucky Real Estate Commission’s Group Policy

Real Estate E&O Insurance for Kentucky Licensees

The KREC discontinued processing the Kentucky Group Program on their website on November 17, 2017. Policies will now be purchase directly through RISC.

Kentucky Individual Licensee Coverage

The Kentucky Real Estate Commission (KREC) 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 Kentucky 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.

For step-by-step instructions to enroll online, click here.

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 Kentucky. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2018 CNA. All rights reserved.

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.

April 1, 2018 to April 1, 2019 Policy Period

The KREC discontinued processing the Kentucky Group Program on their website on November 17, 2017. Policies will now be purchase directly through RISC.

Enroll Online: For the April 1, 2018 to April 1, 2019 policy period, enrollment in the state program will only be available for purchase online using a Visa or MasterCard. If for some reason you are unable to purchase online, please contact RISC at 1-800-637-7319 Option 1. 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. 

For help enrolling online, click here.

Enroll or Renew

Purchase Optional Endorsements & Backdating:
For those who already have the basic policy in place for April 1, 2018 to April 1, 2019 and need to add endorsements or backdate to April 1, 2018

*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. Contact us if you would like to request to backdate the inception of your individual policy period up to 90 days. Please note the carrier reserves the right to refuse to grant requests to backdate. Further, even if your coverage is backdated to April 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 Kentucky. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2018 CNA. All rights reserved.

Why Choose RISC

Over $23 Million in defense costs and damages have been incurred by Continental Casualty Company (a CNA insurance company) on behalf of Kentucky licensees as of September 1, 2018, since 2003. RISC and CNA share a commitment to their insureds to provide valuable coverage to Kentucky licensees. When shopping for insurance, it’s important to ask about the company’s experience and paid Kentucky 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 providing information about the policy 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 Kentucky. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2018 CNA. All rights reserved.

Pricing & Available Coverage

Limits of Liability – $126, plus municipal taxes and KY surcharge
$100,000 per claim / $1,000,000 aggregate with NO deductible

Prorated Quarterly:

  • Apr – Jun 2018: $126.00
  • Jul – Sep 2018: $94.50
  • Oct – Dec 2018: $63.00
  • Jan – Mar 2019: $31.50

Increased Limits Available – Available for additional premium
Increased limits available in the amounts of (1) $250,000 per claim / $1,000,000 aggregate or (2) $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 licensees are all insured through the group program. All of the firm’s licensees must participate in the group program for the firm to qualify for an excess policy. Our excess program automatically includes these key features at no additional cost: 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 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). The firm’s broker or officer must complete an excess application form 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. (Defense costs are limited under the environmental, discrimination, escrow, lock box, and regulatory complaints coverages and the subpoena endorsement, which were not traditionally covered at all under many E&O policies.)

Insured Professional Services – Automatically included
The definition of professional services includes licensed activity, including broker price opinions, property management, leasing, and renting.

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

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

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
$10,000 per claim / $10,000 aggregate (damages and defense costs, combined) Automatically included
Escrow / Earnest Money Coverage $2,500 per claim / $5,000 aggregate (defense costs).

Escrow / Earnest Money Coverage – Automatically included
$2,500 per claim / $5,000 aggregate (defense costs)

Environmental Coverage – Automatically included
$5,000 per claim / $10,000 aggregate (damages and defense costs, combined).

Lock Box Coverage – Automatically included
$5,000 per claim / $10,000 aggregate (damage and defense costs, combined)

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, provided the sale or listing is performed through your principal broker.

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.

Developed/Constructed by Spouse Endorsement – $250
Adds insurance for the sale or listing for sale of residential property which is constructed or developed by the licensee’s spouse under certain conditions.

Subpoena Endorsement – $6
Up to $5,000 in attorneys’ fees in connection with a covered subpoena (maximum annual aggregate of $5,000 for all subpoenas).

Residential Personal Interest Coverage Endorsement - $6
Endorsement Adds insurance for the sale or listing for sale of residential property in which you, your spouse, or an entity owned by your or your spouse have an ownership interest under certain conditions.

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 Kentucky and have an active real estate license in Kentucky and another state that requires real estate E&O insurance, you may purchase a conformity endorsement to conform your coverage under the Kentucky 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 Kentucky (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 Kentucky. If you are not actually domiciled in Kentucky or not considered to be domiciled in Kentucky under the policy provisions, the policy will only insure professional services rendered in Kentucky.

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 Kentucky. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2018 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 environmental, discrimination, escrow, lock box, and regulatory complaints coverages and the optional subpoena endorsement, 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?

RISC: Yes. Below are excerpts from actual emails we have received from Kentucky insureds:

“This went so well for all of us. . . . While being in real estate 18 years . . . I realize that every day you can learn something new which helps make us better agents for our clients. You & your company were great. I see now why it’s good to have insurance. Thanks again.” (D.W., RISC client for 12 years)

“I want to thank you for the absolute professional handling of a difficult experience. In this contentious day it was with trepidation that I called on you for help. However from the moment I spoke to [a RISC adjuster] until the issues were resolved I was advised respectfully and made aware of each potential matter up for discussion. I could have not asked for a more professional group to represent me. Thanks a million!” (J.M., RISC client for 12 years)

“I want to thank you and your company for your courtesy and the legal representation. I could not have asked for any more. [The attorney you hired to represent me] is a very competent attorney and super nice person. I will be happy to recommend your company to anyone. I hope I don’t have to call on you again, but it is very reassuring to know you are there if I need you. “(E.B., RISC client for 12 years)

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 Kentucky. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2018 CNA. All rights reserved.
© 2016 RICE INSURANCE SERVICES COMPANY, LLC
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