The group policy is available to each licensee with no right on the part of the insurance company to cancel coverage for any licensee during the policy period, other than as set forth by Commission rules and regulations.

The group policy provides professional liability protection for covered loss that results from the conduct of your duties as a real estate licensee.  This policy is a claims-made and reported insurance policy.

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Highlights of the group program include:

• A group E&O policy covering all real estate licensees that pay the required premium. Real estate firms may apply for coverage on the same basis as individual licensees. A separate firm enrollment form is included in the mailing to principal brokers.
• A policy period of April 1, 2008 to March 31, 2009.
• Choice of Limits – Minimum State mandatory limits of $100,000/$1,000,000 or optional limits of $250,000/$1,000,000 or $500,000/$1,000,000.  Defense
  expenses are paid in addition to the limits of liability.
  The limits apply per licensee.
• Deductibles – No deductible applies to either claim expense or damages.
• Lock Box property damage limit of liability of $5,000 for each occurrence and $10,000 aggregate is included with a duty to defend.
• Franchise Grantor is automatically included as an additional insured. A separate endorsement is not required.
• Conformity Clause is automatically included.  A separate endorsement is not required. Does not apply to certifying coverage to Tennessee.  Please contact us if you need certification of coverage to Tennessee.
• Allows up to 25% ownership/financial interest in the management or sale of property that is owned by an insured or spouse or 10% ownership/financial interest in property built or developed by an insured or spouse.
• 90 Day limited extending reporting period after policy expiration.
• An Optional Extended Reporting Period Endorsement (Tail Coverage) is available, by request, under the group policy for licensees who do not renew or who do not renew their coverage on a timely basis under this policy.  This endorsement extends for one (1), two (2) or three (3) years the time to report certain claims alleging wrongful acts that are committed before the end of the policy period, but not before your retroactive date.  The claim must be made and reported during the applicable extended reporting period.  This endorsement does not extend the policy period or change the scope of coverage.
• Coverage for certain “prior acts” if the insured had similar claims-made coverage continually in force up until the time coverage begins under the group policy.

Available Endorsements:

• Fair Housing Discrimination will provide up to $2,500 per claim and $5,000 aggregate for defense expenses of such claims or suits alleging violations of Title VII of the Civil Rights Act of 1968 (as amended) or the Fair Housing Act of 1988 (as amended).
• Regulatory Complaint Endorsement will provide up to $2,500 per claim and $5,000 aggregate for defense expenses of complaints to a real estate regulatory commission or board provided such complaints are otherwise covered under this policy.
• Pollution Exclusion Amendatory Endorsement will provide up to $2,500 per claim and $5,000 aggregate for defense expenses for claims or suits resulting from a licensee’s failure to detect or advise of the presence of “pollutants”.
• Personal Identity Coverage Endorsement is available that provides up to $25,000 identity theft insurance for expenses and lost wages ($0 deductible) to the real estate agent and his or her family.  In addition a case manager is assigned to assist the agent in the identity restoration process.
• Appraisal Endorsement is available to individual licensees who also hold and maintain an active real estate license.

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Summary of Policy Exclusions:

• Bodily injury, property damage, personal injury, advertising injury
• Dishonest, Fraudulent, Criminal acts
• Unfair Competition, Piracy, Intellectual Property
• Conversion, misappropriation, failure to pay fees, commission
• Failure to pay or collect money held for others
• Violations of securities laws
• Failure to purchase/maintain insurance or bonds
• Discrimination, employment related practices
• Pollution including mold/fungi
• Asbestos, Radon and Lead
• Other business
• Contractual Agreements
• Claims made by an insured
• Financial Interest – management or sale of property that is owned by an insured or spouse who has over 25% ownership interest or built/developed by an insured or spouse who has over a 10% ownership interest
• Notarizing signatures not signed before the insured
• Wrongful act committed while an inactive licensee
• Appraisal Activity

The above descriptions are summaries only.  They do not include all terms, conditions and exclusions of the policy described.  Please refer to the actual policy for complete details of coverage and exclusions.  For a copy of the policy, please view our website at www.wugieo.com.

1. What is the cost of the group policy?  The fully earned premium for the minimum Kentucky Real Estate Commission (KREC) required limits of $100,000 per claim and $1,000,000 aggregate is $130.00 per license, plus any applicable taxes and surcharges.  A tax chart can be found on the KREC web site, www.krec.ky.gov.
2. How do I obtain coverage?  Your principal broker should remit your payment, made payable to the KREC, along with your license renewal or application to the KREC at 10200 Linn Station Road, Suite 201, Louisville, KY 40223.  To obtain the optional endorsements or higher limits, please complete the supplementary enrollment form and send a separate check made payable to Williams Underwriting Group, PO Box 769, Jeffersonville, IN 47131-0769.
3. Where does coverage apply under the group policy?  For resident Kentucky licensees and non-resident licensees who live within fifty (50) miles of the Kentucky state line and who have their principal real estate license affiliated with a real estate office located in Kentucky, the policy applies to wrongful acts – as defined in the policy – that are committed in the coverage territory as described in the policy.  All claims must be brought in the United States, its territories or possessions, Puerto Rico or Canada.  For all other licensees, the policy responds to wrongful acts – as described in the policy – committed only within the commonwealth of Kentucky.
4. Can Principal Brokers obtain coverage under the group policy for their firm?  Yes.  Firms that are registered with the KREC may purchase this coverage just as an individual licensee may.  Please complete the enrollment form for Firms and mail your check made payable to Williams Underwriting Group at PO Box 769, Jeffersonville, IN 47131-0769.  Individual licensees will still be required to purchase coverage for their licenses.  This is not the same as excess and augmented coverage.  You would be purchasing the same coverage as individual licensees, but in the name of the firm.  A summary description of the excess and augmented coverage is included in the mailing to principal brokers.
5. When must claims and potential claims be reported?  If a claim is made or a suit is brought against you during the policy period, you must report the claim or suit to the insurer in writing as soon as practicable thereafter, but not more than ninety (90) days after you become aware of such claim or suit. If during the policy period you become aware of an act, error, omission or occurrence that reasonably could be expected to give rise to a claim or suit against you, you must report the specific act, error, omission or occurrence in writing during the policy period.  Then, any actual claim that is subsequently made against you arising from such act, error, omission or occurrence will be deemed to be a claim made during the policy period.  Please refer to the
   policy for specific claim reporting procedures.  Claim forms will be provided with your certificate of insurance or you can obtain them from our website, www.wugieo.com.
6. What if a claim is made after the policy period?  It is important to remember that this is a claims-made and reported policy.  Claims must be reported in the same policy period that they are made against you.  Claims made after the policy period are generally not covered unless reported to the insurer during the ninety (90) day limited reporting period included in the policy or any applicable Extended Reporting Period.
7. What is a Claims-Made Policy?  Under a claims-made policy, you are protected for covered claims reported under the policy that is in effect at the time you report the claim, not when the real estate transaction occurred.  However, the real estate transaction must have occurred on or after your retroactive date and before your coverage ends.
8. Where do licensees report claims?  Licensees must report all claims or potential claims (as defined in the policy) in writing immediately to the insurance company.

   REPORT CLAIMS TO:  

   AIG Domestic Claims

   C - Claims Department

   175 Water Street, 8th Floor

   New York, NY  10038

   Attn: Robert Hershkowitz

   Fax:  866-830-3675 (Direct)

   Ph:  877-867-3783 (Toll Free)

   Ph:  212-458-2028 (Direct Line)

   E-mail:  Robert.Hershkowitz@AIG.com

9. What is a “Retroactive Date”?  Each licensee covered under the group policy will have his/her own retroactive date.  It is the earliest date that a licensee is first insured under a claims-made policy that has been continually in force.  A claim resulting from a wrongful act – as described in the policy – which took place before a licensees “retroactive date” will not be covered under the policy.

10. What will be my “Retroactive Date” if I am not currently insured under a Claims-Made policy or if I renew late?  Licensees joining the group policy who are not currently insured under a Claims-Made Policy or renew late will have a “retroactive date” which coincides with the date which your payment is processed by the KREC.

11. Is appraisal activity covered?  No.  Appraisal activity is not included in the definition of “real estate services”.  An Appraisal Endorsement must be
    purchased to amend the definition of “real estate services” to include appraisal activity. Individual licensees must hold and maintain an active real estate license for coverage to apply.

12. Are Regulatory Complaints Covered?  No.  The definition of a claim does not include Regulatory Complaints.  Please note that if you become aware of a
    complaint that is to be brought before a regulatory board or commission, the complaint must be reported to the insurance company in writing before the end of the policy period (see question #5).  Any subsequent claim made against the insured resulting from the original complaint will have been considered made at the time the original claim was received by the insurance company.  An endorsement can be purchased that will provide up to $2,500 per claim and $5,000 aggregate in coverage for claim expenses for Regulatory Complaints.

13. Are Fair Housing Act Claims Covered?  No.  Claims alleging violations of Title VII of the Civil Rights Act of 1986 (as amended) or the Fair Housing Act of 1988 (as amended) are not covered.  An endorsement can be purchased that will provide up to $2,500 per claim and $5,000 aggregate in coverage for claim expenses for Fair Housing Act claims.

14. Are Pollution Claims Covered?  No.  Claims alleging the failure to detect or advise of pollutants are not covered.  An endorsement can be purchased that will provide up to $2,500 per claim and $5,000 aggregate in coverage for claim expenses for the failure to detect or advise of pollutants.

15. What is an Extended Reporting Period Endorsement (Tail Coverage)?  This endorsement extends the time to report certain claims alleging wrongful acts that are committed before the end of the policy period, but not before your retroactive date.  The claim must be reported during the applicable Extended Reporting Period.  This endorsement does not extend the policy period or change the scope of coverage.  This coverage must be requested and paid for within ninety (90) days after your coverage under this policy ends. 

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  IMPORTANT NOTICES

Licensees who do not obtain insurance by May 15, 2008 may lose any previous established retroactive date (i.e., “prior acts” coverage). Your new retroactive date will be the date in which the Kentucky Real Estate Commission processes your payment.  (This prior acts warning only applies to coverage purchased through our program.  Other insurance companies may or may not have their own requirements.) 

All premiums, whether for the basic limit of liability or any endorsements, are fully earned (no refunds) once coverage is in effect. 

For any questions not answered in the brochure, please contact Williams Underwriting Group at the location listed on the back of this brochure.
 

OPTIONS

Limits available up to $1,000,000/$3,000,000 with choice of deductible starting at $1,000.  The deductible only applies to claims which would not otherwise be covered by the primary limits.  This Coverage is available only to firms whose licensees are covered under the group policy as issued by the Insurance Company.

• Failure to detect pollutants with limits up to:

$100,000 residential

$50,000 commercial

Paid claim and/or defense

• Fair Housing Discrimination - $25,000 sublimit.

excess over primary coverage

Paid claim and/or defense

• First dollar defense
• Includes coverage for Franchise Grantor

Optional Coverage

1. Sale of owned property.