Montana Board of Realty Regulation’s Group Policy

Real Estate E&O Insurance Designed for Montana Licensees

Enrollment for November 1, 2023 to November 1, 2024 NOW AVAILABLE!
Click Enroll or Renew on the left for more information.

The Montana Board of Realty Regulation 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 Montana licensees and exceeds state minimum requirements.  The state group program offers affordable E&O insurance to each and every 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.

IMPORTANT NOTICE:
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 Montana. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Sample Policies and Endorsements

1. 2023 Sample Policy

2. 2023 Optional Endorsements

3. 2023 Policy Features Flyer

4. Claims

Enroll or Renew

Enrollment for November 1, 2023 to November 1, 2024 NOW AVAILABLE!

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.

November 1, 2023 to November 1, 2024 Policy Period

Enroll Online:  Enroll or Renew

Enroll by Mail: Mail your completed enrollment form with applicable premium by check or money order (payable to RISC) to either address below:

Individual Licensee Coverage

• Broker and Salesperson Enrollment Form:  Purchase coverage for brokers and salesperson licensees to be effective after November 1*
• Property Manager Enrollment Form:  Purchase coverage for property manager licensee to be effective after November 1*
• Prorated Enrollment Form: Purchase coverage for individual licensee to be effective AFTER November 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

November 1, 2022 to November 1, 2023 Policy Period

Individual Licensee Coverage

• Prorated Enrollment Form: Purchase coverage for individual licensee to be effective AFTER November 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. To request to backdate coverage up to 90 days, use the Backdate Request Form. Even if your coverage is backdated to November 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 Montana. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Why Choose RISC

The state group program offers affordable E&O insurance to each and every 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.

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 all 15 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.

IMPORTANT NOTICE: 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 Montana. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Pricing & Available Coverage

Limits of Liability – November 1, 2023 to November 1, 2024: ONLY $168 PER LICENSEE
$100,000 per claim / $300,000 aggregate with $1,000 damage deductible.  (Only one deductible applies if a claim involves multiple licensees with the same firm.)  All policies expire November 1, 2024.

• December 2023 – $154
• January 2024 – $140
• February 2024 – $126
• March 2024 – $112
• April 2024 – $98
• May 2024 – $84
• June 2024 – $70
• July 2024 – $56
• August 2024 – $42
• September 2024 – $28
• October 2024 – $14

Increased Limits Available

• $250,000 per claim / $500,000 aggregate  – $100 additional premium per licensee
• $500,000 per claim / $1,000,000 aggregate – $160 additional premium per licensee

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 or the lock box sublimits. (There are limits on defense costs under the limited regulatory complaints and subpoena coverages which were typically not offered under most traditional E&O policies.)

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
$25,000 per discrimination claim / $25,000 aggregate with unlimited defense costs.

Escrow / Earnest Money Sublimits- Automatically included
$5,000 per escrow claim/ $10,000 aggregate with unlimited defense costs.

Environmental Sublimits- Automatically included
$10,000 per environmental claim / $20,000 aggregate with unlimited defense costs.

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

Primary Residence Sublimits- Automatically included
$100,000 per primary residence claim (involving the sale or listing for sale of the insured licensee’s primary residence) / $300,000 aggregate with unlimited defense costs (conditions apply).

Limited Regulatory Complaints Coverage- Automatically included
$2,500 per regulatory complaint / $5,000 aggregate (defense costs) for fees, costs, and expenses resulting from the investigation, adjustment, defense, and appeal per complaint to a real estate regulatory board or commission.

Supplemental Security Breach Coverage- Automatically included
$5,000 maximum reimbursement to the real estate firm for costs incurred to provide required notification to clients of a security breach when information may have been disclosed or used in an unauthorized manner, regardless of number of licensees involved.

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

Limited Subpoena Coverage- Automatically included
$2,500 in attorney’s fees to represent the insured in connection with a covered subpoena.

Expanded Definition of Professional Services- Automatically included
The definition of professional services includes licensed activity, issuance of market analyses and valuations for the purpose of listing a property for sale or guiding a buyer in making an offer, issuance of a broker price opinion, and services performed or advice given (including as a notary public and as a real estate consultant or counselor) in connection with licensed activity performed by the insured licensee (provided all necessary licensee are held at the time of the professional services).

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).

Developed/Constructed by Spouse Endorsement- $250
$100,000 per developed/constructed by spouse claim (involving the sale of residential property constructed or developed by the insured licensee’s spouse) / $300,000 aggregate with unlimited defense costs (conditions apply).

Property Management Endorsement- $150
Adds insurance for specific property management services

Residential Personal Interest Endorsement- $50
$100,000 per claim (claims involving the sale or listing for sale of residential property owned by the licensee, the licensee’s spouse, or a company owned by the insured licensee) / $300,000 aggregate with unlimited defense costs (conditions apply).

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

IMPORTANT NOTICE:
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 Montana. 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 limited regulatory complaints and subpoena coverages, which were not 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’ve received:

I would like to take this opportunity to express our satisfaction with RISC. . . .  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., IA insured and broker of large firm

The level of professionalism, responsiveness and knowledge by RISC’s staff has consistently been outstanding.  Between RISC and the local attorneys working with RISC, our company and its agents are very well protected.  J.J., V.P. and General Counsel of large IA firm

I wasn’t looking forward to the process of getting my E&O insurance but you made it painless and simple.  T.B., IA licensee

I’ve never seen better service than what you provide for us each year.  I ask for something and it’s always answered by the end of the day.  I wish all companies had your work ethic.  I know I’m not the only one asking many questions and you’re always there. . . . Thank you.  B.F., CO insured

Thank you for all of hard work and effort you put in on our E&O file.  [I was] so appreciative of everything you and RISC did to help us – we felt like you were truly in our corner.  You never know how good a company is until you really need them – RISC was a shining star!  We will be clients for life!  C.S., CO insured

I want to thank you and your company for your courtesy and for the legal representation.  I could not have asked for any more.  [Defense counsel retained by RISC] is a very competent attorney and super nice person.  I hope I don’t have to call on you again, but it is very reassuring to know that you are there if I need you.  E.B., KY insured

Thanks for doing such a good job handling this claim. You guys are the best. I would highly recommend RISC to anyone.  M.C., KY insured

I have yet to see any insurance company offer what RISC does as far as quality service and professionalism in the industry. You have definitely set the bar, and it is such a pleasure to work and do business with friendly, service-oriented professionals.  T.G., LA insured

You are a dream on a cloud of wonderful! Thank you SO very much. Not going to lie, our butts were on the line . . . we had a lot of assets in jeopardy and you saved the day and we greatly appreciate it. K.S., NM insured

A lot of agents are enrolling online and it’s wonderful!!!  A.M., Bookkeeper of large SD firm

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

IMPORTANT NOTICE:
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 Montana. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.