Williams Underwriting Group, Inc. was chosen as the program administrator for a group professional liability policy underwritten by National Union Fire Insurance Company of Pittsburgh, Pa., Inc., a member company of American International Group, Inc. (AIG).

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.  The policy is a claims-made and reported 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.  Licensed Real Estate Firms may, at their option, apply for coverage on the same basis as individual licensees.
• A policy period of January 1, 2008 to January 1, 2009.
• Choice of Limits - Minimum State mandatory limits $100,000/$500,000 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.
• Deductibles are $1,000 per wrongful act and $1,000 for defense expenses.  Only one of each such deductibles will apply to the same claim for licensees of the same real estate firm.
• Lock box property damage limit of liability is $10,000 total limit. A $250.00 deductible will apply to each occurrence.
• Fair Housing Discrimination A $10,000 sub-limit for damages and expenses is included subject to each wrongful act and defense deductibles.
• Regulatory Complaint Defense Expense A $5,000 sub-limit for damages and expenses is included subject to each wrongful act and defense deductibles.
• Sale of or listing of your primary or principle residence is included provided the sale or listing is performed under Wyoming's Real Estate Laws.  (coverage does not include For Sale By Owner sales or listings.)
• Franchise Grantor is automatically included as an additional insured.
• Allows up to 25% ownership/financial interest in the management or sale of property that is owned by an insured or 10% ownership/financial interest in property built or developed by an insured.
• 90 day limited extended reporting period after policy expiration.
• An Optional Extended Reporting Period Endorsement is available, by request, under the group policy for licensees who do not renew their coverage under this policy.  This endorsement extends for three (3) years the time to report certain claims alleging wrongful acts that are committed before the end of the policy period, and after 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.
• 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 conforms to conditions of other mandatory states E&O requirements.
• Appraisal Endorsement is available to individual real estate licensees who also hold and maintain an active real estate license.
• A Personal Identity Coverage Endorsement is available that provides up to $25,000 reimbursement for expenses and lost wages from identity theft.

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Summary of Policy Exclusions:

• Bodily injury, property damage, personal injury, advertising injury.
• Dishonest, fraudulent, criminal acts.
• 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.
• Pollutants including fungi/mold.
• Asbestos, radon and lead.
• Other business.
• Contractual agreements.
• Claims made by an insured.
• Financial interest.

The above descriptions are a summary 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. 

1. Are all real estate licensees required to buy coverage under the group policy?
NO.  Licensees who do not desire coverage under the group policy may purchase insurance coverage elsewhere.  However, all licensees obtaining coverage other than that provided by the group policy must provide proof of coverage to the Wyoming Real Estate Commission, and all coverage must meet the minimum equivalency requirements as established by the WREC.
2. What is the cost of  coverage under the group policy?
The minimum WREC required limits of $100,000/$500,000 is $150.00 per license.  Please refer to premium schedule for optional limit premiums.  The premium for any chosen limit after January 31, 2008 will be prorated.  All premiums are fully earned.
3. Where does coverage apply under the group policy?
For resident Wyoming licensees, including non-resident licensees who work for or represent a real estate firm licensed and located in Wyoming, 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 Wyoming licensees who do not work for or represent a real estate firm licensed and located in Wyoming, the policy responds to wrongful acts - as described in the policy - committed only within the state of Wyoming.
4. When must claims or potential claims be reported?
If an incident occurs that may involve liability protection provided by this policy, the incident must be reported as soon as possible during the policy period or any applicable extended reporting period in order for coverage to apply.  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.
5. Where do licensees report claims?
Licensees must report all claims or potential claims (as defined in the policy) immediately to the Insurance company.

REPORT CLAIMS TO:  

AIG Domestic Claims

175 Water Street

8th Floor

New York, NY  10038

Attn: Robert Hershkowitz

Ph:  212-458-2028 (Direct)

Ph:  877-867-3783 (Toll Free)

Fax:  866-830-3675

E-mail:  Robert.Hershkowitz@AIG.com

6. 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 after your retroactive date and before your coverage ends.

7. 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 continuously in force.

8. What is the importance of a “Retroactive Date”? 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.  It is therefore very important for licensees enrolling in the group policy carefully determine what his/her “retroactive date” is if they are currently covered under a claims-made policy.

9. What will be my “Retroactive Date” if I am not currently insured under a Claims-Made policy? Licensees joining the group policy who are not currently insured under a claims-made policy will have a “retroactive date” the first day of the month in which they become insured under the group policy.

10. 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. 

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New license applicants or licensees joining the group program after January 31, 2008 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 Coverage

Appraisal Endorsement - $100.00

Personal Identity Coverage Endorsement - $13.50

NOTE:  In order to notify the WREC of your compliance with the Statute for 2008, we must receive your mandatory payment -or- the optional payment and the enrollment form prior to December 17, 2007.  Licensees submitting forms and payments after December 17, 2007 will continue to be certified to the WREC.  However, the WREC 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 January 1, 2007.

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 - $40,000 sublimit.

excess over primary coverage

Paid claim and/or defense

• First dollar defense - unlimited.
• Includes coverage for Franchise Grantor.

Optional Coverage

1. Sale of owned property.