Williams Underwriting Group (WUG) is pleased to announce that we are again making our real estate errors & omissions coverage available in 2009 for all Tennessee licensees.  Since 1991 WUG has understood the importance of providing quality claims-made E&O coverage to real estate licensees.  For this reason, we have teamed up with National Union Fire Insurance Company of Pittsburgh, Pa, a member company of American International Group, Inc. (AIG) to provide quality coverage and value.  Our coverage meets the requirements established by the Tennessee Real Estate Commission.  In addition we include coverages (at no additional charge) that are not contained in the State contracted program. 

Policy Features:

•  Available to Tennessee real estate licensees and firms.
•  Choice of limits for both individual and firm licenses of $100,000/$300,000, $250,000/$750,000 or $500,000/$1,000,000.  Claim expenses are paid in addition to the limits of liability.
•  Deductible is $1,000 per wrongful act.  Each licensee pays this deductible.  There is no deductible for claim expenses.
•  Lock Box property damage limit of liability is $10,000 each event/$10,000 total limit.  These are the only limits of liability for Lock Box coverage.  There is $250 deductible for Lock Box coverage.
•  Fair Housing sub-limit of $10,000 maximum for damages and claims expense subject to $1,000 deductible.
•  Regulatory Complaints defense sub-limit up to $5,000
•  Primary Residence: Coverage for the sale or listing of your primary or principle residence provided the sale or listing is performed under the real estate license laws of Tennessee. (Coverage does not include For Sale By Owner sales or listings)
•  Allows up to 25% ownership/financial interest in the management or sale of property that is owned, and 10% ownership/financial interest in property built or developed by an insured.
•  90 day extended reporting period after policy expiration.
•  An optional Extended Reporting Period Endorsement is available to licensees who do not renew their coverage under this policy.  This endorsement extends the time to report certain claims that are brought against the insured after coverage under this policy ends, but which are based on wrongful acts that occurred after the retroactive date as listed on your certificate of coverage or policy and before your policy period ends. 
•  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.
•  Coverage automatically conforms to conditions of other mandatory states E&O requirements.  We will certify your coverage directly to other states where allowed.  We will provide certification to you for all other states. There is no additional charge.
•  Certification: We will certify your coverage to the Tennessee Real Estate Commission.  There are no certification forms you need to complete.
•  No additional coverage charges: All coverages listed above are included in our policy.
•  Online enrollment with Visa, MasterCard or Discover – www.wugieo.com.  We assess a $5.00 convenience fee to enroll online.  (This is in addition to and not included in the policy premium)
•  Active Real Estate Licensees, who are also Appraisers, may purchase an endorsement to cover their appraisal activities. (If you do not hold an active real estate license, then you can not purchase this endorsement and no appraisal coverage will apply.  You must also maintain an active real estate license for the entire policy period for appraisal coverage to apply)
•  A new optional Personal Identity Coverage Endorsement is now available that provides up to $25,000 reimbursement for expenses and lost wages from identity theft.
•  Claims are handled by insurance company professionals. This helps eliminate conflicts as to whom the insurance administrator works for, you or the insurance company.  We work on your behalf if there are any issues or concerns with the insurance company.

Non-Resident Licensees: Coverage only applies to wrongful acts - as defined in the policy - committed in Tennessee unless you work for or represent a real estate firm licensed and located in Tennessee.

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Summary of Exclusions:

• Bodily injury, property damage, personal injury, advertising injury
• Dishonest, fraudulent, criminal acts
• Conversion, misappropriation, failure to pay fees, earnest deposits
• Violations of securities laws
• Failure to maintain insurance or bonds
• Discrimination, employment related practices
• Pollutants – Including Mold/Fungi
• Asbestos, radon and lead
• Formation, syndication, operation or administration of a corporation, partnership, etc.
• Contractual agreements
• Claims made by an insured
• Financial interest (management or sale of property that is owned by an insured or spouse of an insured who has over a 25% ownership interest in said property , or built or developed by an insured or spouse of an insured who has over a 10% ownership interest in said property)

Licensees who elect not to maintain continuous coverage (due to retirement, failing to renew on time, putting your license on inactive status, etc.), may not have coverage for claims reported in the future for past real estate services, other than what is provided for in the limited extended reporting period included in the policy.  If, prior to the policy period, an insured is aware of any circumstance that you may reasonably expect to lead to a claim (it does not have to be in writing), it needs to be turned into your current insurance company.  The insurance company is not obligated to pay or defend any claim or potential claim of which an insured was aware before the beginning of the new policy period.  A three-year optional Extended Reporting Period Endorsement is available from the insurance company at a cost of 200% of the expiring annual premium.  This endorsement will protect an insured from covered claims reported in the future for past real estate services that occurred after the retroactive date (shown on the Certificate of Insurance) and before the policy expiration date of 01-01-09.  This endorsement does not extend the policy period, however.  If you would like to purchase this endorsement, you must contact Williams Underwriting Group @ 800-222-4035 within 90 days of your policy expiration date of 01-01-09.  Payment must be received within the same 90-day period.  If you are not insured under our program in 2008, you will need to contact the insurance company that provided your coverage in 2008 to discuss with them their terms and conditions for purchasing an extended reporting period endorsement, if any.

Additional limits of coverage are available to Brokers and/or Firms subject to underwriting considerations.  Limits are available up to $1,000,000/$3,000,000 with choice of deductible starting at $1,000.  Excess and Augmented coverage is available to firms (entities) and sole proprietorships where the majority of licensees are covered under the Williams Underwriting Group program. 

The Excess and Augmented policy also includes: Failure to advise of Pollutants - $100,000 annual sub-limit for residential property and $50,000 annual sub-limit for commercial property for defense and expense and increases Fair Housing Discrimination  annual sub-limit for loss and defense to $50,000.  You can purchase by endorsement coverage for the sale of owned property.

To obtain additional information and/or application, please contact Williams Underwriting Group at 800-222-4035

Insurance underwritten by insurance company subsidiaries or affiliates of Chartis, Inc.  All coverage descriptions, exclusions, terms, and conditions are summaries only.  They do not include all coverages, exclusions, terms, and conditions of the policy described.  Please refer to the actual policy for complete details of coverages, exclusions, terms, and conditions.  Specimen copies of the policies described can be found on our web site, www.wugieo.com.

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PROGRAM MANAGERS & ADMINISTRATORS

Williams Underwriting Group 
A Division of Maverick Insurance

Mailing Address:  P.O. Box 1086, New Albany, IN  47151-1086 

Street (overnight) Address:  826 W. Main St., New Albany, IN  47150

Toll Free:  800-222-4035

Phone:  812-941-4137

Fax:  812-944-8010

E-Mail: wug@maverick-insurance.com