Tennessee Real Estate Commission’s Group Policy

Online Enrollment for the January 1, 2019 to January 1, 2021 policy period is now available! Click “Enroll or Renew” to the left for more information.

Real Estate E&O Insurance Designed for Tennessee Licensees

The Tennessee Real Estate Commission (TREC) 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 Tennessee 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 Tennessee. 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.

January 1, 2019 to January 1, 2021 Policy Period

Enroll Online: NOW AVAILABLE! 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:

Mailing Address:
Rice Insurance Services Company, LLC
PO Box 6709
Louisville, KY 40206

Overnight Address:
Rice Insurance Services Company, LLC
4211 Norbourne Blvd
Louisville, KY 40207

Individual Licensee Coverage

Optional Firm Licensee Coverage

January 1, 2017 to January 1, 2019 Policy Period

Individual Licensee Coverage

  • Prorated Enrollment Form: Purchase coverage to be effective after January.*
  • Endorsement Request Form: Request to add an endorsement to an individual (not firm) 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.)

Optional Firm Licensee Coverage

  • Prorated Enrollment Form: Purchase coverage to be effective after January.* Real estate firms are not required to carry E&O insurance but may choose to do so. Real estate firms must be registered with the Nebraska Secretary of State to enroll in the group policy.

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

Why Choose RISC

Over $23.9 Million in defense costs and damages have been incurred by Continental Casualty Company (a CNA insurance company) on behalf of Tennessee licensees as of September 1, 2018 since 2003. RISC and the carrier share a commitment to their insureds to provide valuable coverage to Tennessee licensees. When shopping for insurance, it’s important to ask about the company’s experience and paid Tennessee 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 Tennessee. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2018 CNA. All rights reserved.

Pricing & Available Coverage

Limits of Liability for 2-year policy term January 1, 2019 to January 1, 2021 – $221
$100,000 per claim / $300,000 annual aggregate with $1,000 damage deductible.  (Only one deductible applies if a claim involves multiple licensees with the same firm.)

  • February 2019$212
  • March 2019 - $203
  • April 2019 - $193
  • May 2019 - $184
  • June 2019 - $175
  • July 2019 – $166
  • August 2019 - $157
  • September 2019 - $147
  • October 2019 - $138
  • November 2019 - $129
  • December 2019 - $120
  • January 2020 - $111
  • February 2020 - $101
  • March 2020 - $92
  • April 2020 - $83
  • May 2020 - $74
  • June 2020 - $64
  • July 2020 - $55
  • August 2020 - $46
  • September 2020 - $37
  • October 2020 - $28
  • November 2020 - $18
  • December 2020 - $9

Increased Limits Available- Available for additional premium
Increased limits available to individual (not firm) licensees in the amounts of $250,000 per claim / $750,000 annual aggregate & $500,000 per claim / $1,000,000 annual 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. 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 licensees 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 or sublimits . (There are limits on defense costs under the regulatory complaints and subpoena assistance coverage, since those features are typically not offered for the standard program.)

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

Spousal Coverage- Automatically included
Licensee’s spouse or domestic partner considered an insured in certain situations. Automatically included.  Expanded Definition of Professional Services The definition of professional services includes opinions on recommended listing or purchase prices under certain conditions and services performed or advice given (including as a notary public and as a real estate consultant or counselor) in connection with licensed activity.

Expanded Definition of Professional Services – Automatically included
The definition of professional services includes opinions on recommended listing or purchase prices under certain conditions and services performed or advice given (including as a notary public and as a real estate consultant or counselor) in connection with licensed activity

Retroactive / Prior Acts Coverage- Automatically included
Prior Acts Coverage 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
Fair Housing Coverage $5,000 per claim / $10,000 aggregate annual (damages) with no limit on defense costs

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

Environmental Coverage- Automatically included
$100,000 per claim / $300,000 aggregate annual (damages) with no limit on defense costs.

Lock Box Coverage- Automatically included
$5,000 per claim / $10,000 aggregate annual (damages) with no limit on defense costs (reduced damage deductible of $250 applies to covered lock box claims).

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

Regulatory Complaints Coverage- Automatically included
$2,500 per regulatory complaint / $5,000 annual 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.

Appraisal Endorsement- $175 for 2-year term
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.

Appraisal Trainee Endorsement- $175 for 2-year term
Insures specific appraiser trainees listed in the endorsement up to policy limits.

Property Management Endorsement – $100 for 2-year term
Adds coverage for specified property management services.

Contingent Bodily Injury / Property Damage Coverage – $50 for 2-year term
$10,000 per claim / $10,000 aggregate (damages and defense costs, combined) for claims arising out of professional services under certain conditions.

Residential Personal Interest Endorsement – $50 for 2-year term
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

Endorsement Bundle (includes 5 different endorsements)- $30 for 2-year term

  • Security Breach Notification Endorsement: $5,000 per real estate firm for cost incurred to notify clients of a security breach ($5,000 maximum per real estate firm, regardless of number of insureds or incidents involved).
  • Increased Sublimits for Fair Housing/Discrimination Coverage: Increases sublimits to $50,000 per covered fair housing / discrimination claim, up to 50,000 aggregate for damages
  • Increased Sublimits for Lock Box Claims: Increases sublimits to $50,000 per covered lock box claim, up to$50,000 aggregate for damages
  • Increased Sublimits for Subpoena Assistance: Increases sublimits to $5,000 per subpoena, up to $5,000 aggregate
  • Increased Claim Expense Coverage for Regulatory Complaints (Disciplinary Proceedings): Increases regulatory complaints coverage to $5,000 per complaint /$5,000 aggregate (defense costs)

Conformity for Other States that Require Real Estate E&O Insurance- $20 for 2-year term
A conformity endorsement is only needed if you are actively licensed in another state that mandates E&O coverage. If you are domiciled in Tennessee and have an active real estate license in Tennessee and another state that requires real estate E&O insurance, you may purchase a conformity endorsement to conform your coverage under the Tennessee 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 Tennessee (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 Tennessee. If you are not actually domiciled in Tennessee or not considered to be domiciled in Tennessee under the policy provisions, the policy will only insure professional services rendered in Tennessee.

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 Tennessee. 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:

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 (defense costs are limited under the regulatory complaints and subpoena assistance coverage, 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?

“I very much appreciate your support. Every experience I’ve ever had with Rice has been positive. You all are great to work with.”— J.S. (TN licensee)

“I just didn’t realize, especially these days, how many [people] are out there who can AND WILL bring suit against us even when we have done everything right, legal and proper. It is frightening, so I thank God for E&O insurance, RISC, and for the [attorney you retained to represent me].”— N.G. (TN licensee)

“I can’t thank you enough for your support and backing during this 4 ½ year ordeal. Mostly I can’t tell you how grateful I am that you provided me such an able, dynamic young attorney . . . . [W]e’ve prevailed in this major portion of the lawsuit. [I]t’s not only because you had an innocent insured but that [defense counsel] was able to convince the jury of our innocence.”— C.V. (TN licensee) 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 Tennessee. 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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