All active real estate licensees must submit evidence of errors and omissions professional liability insurance to the Nebraska Real Estate Commission (Commission).  Williams Underwriting Group, a division of Neace Lukens (WUG) will continue to provide the group program for Nebraska licensees.  The independent insurance professional liability group program will to be written by Zurich American Insurance (Zurich).  If you enroll under the group policy, such evidence will be provided automatically by WUG.

WUG's group policy is available to each licensee with no right on the part of National Union to cancel coverage for any licensee during the policy period.  Our group policy provides the professional liability protection for covered loss that results from the conduct of your duties as a real estate licensee including real estate appraisal services when conducted by an active real estate licensee.  The policy is a claims-made insuring agreement.

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Highlights of the group program include:

•  A policy period of January 1, 2012 to January 1, 2013.
•  Choice of Limits - Minimum State mandatory limits of $100,000/$300,000 or optional limits of $250,000/$750,000 or $500,000/$1,000,000.  Defense expenses are paid in addition to the limits of liability.  The limits apply per licensee.
•  Deductible is $1,000 per claim.  There is no deductible for defense expenses.
•  Lock box damage limit of liability is $10,000 total limit.  There is no deductible for Lock Box coverage.
•  Fair Housing Discrimination sublimit of $25,000 damages and defense expenses, subject to a $1,000 per claim deductible.
• Environmental Hazards sub-limit of $10,000 per claim and $20,000 for all claims for damages and claim expense including mold and fungi.
• Escrow and Earnest Money Coverage A sub-limit of $5,000 per claim and $10,000 for all claims for damages and claim expense apply.
• Regulatory Complaint sub-limit of $2,500 per claim and $5,000 for all claims for defense expense.
• Subpoena Assistance Costs A $2,500 per subpoena limit and a $2,500 aggregate applies.  No deductible applies.
• Personal Injury liability - as determined by your choice of limits.
•  Appraising activities are covered only if you also hold and maintain an active Nebraska real estate license. 
•  Conformity Coverage. The policy automatically conforms to conditions of other mandatory states E&O requirements (Refer to enrollment form for  TN and IA instructions).
•  Coverage for certain "prior acts" if the insured has had similar claims-made coverage continually in force up until the time coverage begins under this policy.
•  Primary Residence Coverage. Provides coverage for the sale or listing of a licensee's primary or principle residence provided the sale or listing is performed under the real estate license laws of Nebraska.
• Other owned residential property coverage.  Provides coverage for the sale or listing of owned residential property in which a licensee has up to a 25% ownership/financial interest provided the sale or listing is performed under the real estate license law of Nebraska. Coverage is subject to specific conditions as listed in the policy.
•  Two Optional Extended Reporting Period Endorsements are available to licensees who do not renew their coverage.  These endorsements extend 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.  These endorsements do not extend the policy period or change the scope of coverage provided or increase the applicable limit of liability.

   Optional Coverage Endorsements (additional premiums apply)

•  Contingent Bodily Injury and Property Damage.  A sub-limit of $10,000 for all claims solely arising from Property Management Services (as defined in the policy).  This is subject to a $100 deductible.
•  Personal Identity Coverage Endorsement is available that provides up to $25,000 reimbursement for expenses from personal identity theft.

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Summary of Policy Exclusions:

•  Bodily injury, property damage, advertising injury.
•  Dishonest, fraudulent, criminal acts - etc.
•  Conversion, misappropriation, failure to pay fees or commissions, etc.
•  Violations of securities laws.
•  Failure to purchase or maintain insurance or bonds.
•  Discrimination (other than fair housing discrimination), employment related practices.
•  Pollutants including fungi/mold. (limited coverage available by endorsement)
•  Other business activities.
•  Appraisal, management or sale of property that is owned, built or developed by a licensee or spouse of a licensee or any entity, corporation, partnership or trust in which a licensee or spouse of a licensee who has over a 25% financial/ownership interest in said property.  However, this exclusion does not apply to the sale or listing of a licensees' primary residence or other residential property owned by the licensee.
• Relating to property that is constructed or developed by the Insured or the Insured's spouse, including any entity, corporation, partnership or trust in which the Insured or the Insured's spouse maintains a financial or ownership interest which exceeds twenty-five percent (25%). 

DISCLAIMER:  Insurance underwritten and coverage(s) by Zurich American Insurance Company.  (Zurich), an individual member company of Zurich in North America.  The descriptions herein are summaries only.  They do not in any way amend any coverage(s) you may have purchased from Zurich or any other member companies of Zurich in North America, and do not  include all terms, conditions and/or exclusions of the policy(ies) described herein.  Please refer to the actual policy(ies) for full terms, conditions, and exclusions and complete details of coverage(s). 

1. How will the Nebraska Real Estate Commission be notified that I have E&O Insurance for the 2012 policy period? Even though we are no longer the state contracted carrier and are providing an Independent carrier program, we will continue to certify your coverage directly to the Nebraska Real Estate Commission.
2. How do I obtain coverage under your group policy? Simply complete the enclosed enrollment form, per instructions -or- you may enroll on-line at http://www.wugieo.com/ and pay with Visa, Mastercard or Discover.
3. What is the cost of  coverage under your group policy? The fully earned annual premium for the minimum NREC required limits of $100,000/$300,000 is $140.00 per licensee.  Please refer to premium schedule for optional limit premium.  The premium for any limit chosen will be prorated by month of enrollment after January 31.  Please refer to premium schedule.
4. Can I obtain coverage under your group policy for my Firm? YES, Firms which are registered with the Commission may purchase this coverage, in addition to the  brokers' individual coverage.  Simply copy and fill out the form in the Firm's name indicating the choice of limits and submit the proper premium for both forms as instructed.  Or, you may go online and enroll your Firm when you enroll yourself.
5. How do I obtain an Extended Reporting Period Endorsement?  Simply mail within ninety (90) days of the expiration of your policy your request and payment to Williams Underwriting Group to have issued either a three (3) year or five (5) year Extended Reporting Period Endorsement.  The additional premium for the three (3) year optional extended reporting period is 200% of your expiring annual premium.  The additional premium for the five (5) year optional extended reporting period is 300% of your expiring annual premium.  In all cases, your request and payment for either endorsement must be received by The Williams Underwriting Group office no later than March 31, 2012.  We will not accept postmarks subsequent to this date to purchase this endorsement.

WARNING!

Licensees who do not obtain an E&O policy by January 31, 2012 will lose any previously established retroactive date (prior acts coverage).  Your new effective and retroactive date will be the 1st of the month in which your payment is received.  Further, if you do not renew your insurance on time, your license will be placed on inactive status by the Nebraska Real Estate Commission.

6. Where does coverage apply? For resident Nebraska licensees including non-resident licensees who work for or represent a real estate firm licensed and located in Nebraska, the policy applies to wrongful acts - as defined in the policy - that are committed in the coverage territory as defined in the policy (all claims must be brought in United States, its territories or possessions, Puerto Rico or Canada).  For non-resident Nebraska licensees who do not work for or represent a real estate firm licensed and located in Nebraska, the policy responds to wrongful acts - as defined in the policy - committed only within the state of Nebraska.
7. When must claims or potential claims be reported? If an incident happens that may involve liability protection provided by this policy the incident must be reported as soon as possible during the policy period or during an extended reporting period (if applicable) in order for coverage to apply.  Please refer to the policy for specific claim reporting procedures.
8. Where do licensees report claims? Licensees must report all claims or potential claims (as defined in the policy) immediately to the carrier.

   SEND TO:  

   Zurich American Insurance Company

   Attn: Colleen McNicholas

   P.O. Box 968041

   Schaumburg, IL 60196-8041

   Ph:  800-442-2935, Press 1, Ext# 5633

   Ph:  212-553-5662 (Direct)

   Fax:  866-255-2962

   E-mail:  Colleen.McNicholas@zurichna.com

    

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New license applicants or licensees joining our group program after January 31, 2012, will be required to pay the following premium amount that corresponds to the month you wish to obtain coverage and the limits of liability chosen.
 

Optional Endorsements:

• Iowa Conformity Endorsement $15.00 no prorate
• Personal Identity Coverage Endorsement - $15.00
• Contingent Bodily Injury & Property Damage for Property Management Activity - $25.00

NOTE:  In order to notify the Commission of your compliance with the Statute for 2012, we must receive your mandatory payment -or- the optional payment and the enrollment form by November 21, 2011.  Licensees submitting forms and payments after November 21, 2011 will continue to be certified to the Commission.  However, the NREC may impose a late license renewal fee and/or place your license on an inactive status if they do not receive E&O coverage certification by December 1, 2011.

OPTIONS

Limits available up to $1,000,000/$3,000,000.

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 have coverage under the group policy as issued by the Insurance Company.

Optional Coverage

1. Sale of owned property.