A N A C T
RELATING TO REAL ESTATE BROKERS AND SALES PERSONS
It is enacted by the General Assembly as follows:
SECTION 1. Section 5-20.5-25 of the General Laws in Chapter 5-20.5 entitled "Real Estate Brokers and Salespersons" is hereby amended to read as follows:
5-20.5-25. Errors and omissions insurance required of real estate licensees -- (a) All holders of real estate brokers' and salespersons' licenses issued by the state department of business regulation shall, as a condition of retaining that license, carry and maintain errors and omissions insurance covering all business activities contemplated.
(b) The department of business regulation shall make the insurance mandated under this section available to all licensees by contracting with an insurance provider for a group policy, after competitive sealed bidding in accordance with section 37-2-18 or, the department of business regulation shall make available a self-insurance program for all licensees.
(c) Any policy obtained by the department of business regulation must be available to all licensees, with no right on the part of the insurance provider to cancel any licensee, other than as prescribed by the department of business regulation.
(d) Licensees have the option of obtaining shall obtain errors and omissions insurance independently; provided, that . tThe coverage contained in the policy complies shall comply with the minimum requirements established by the department of business regulation.
(e) The department of business regulation determines the terms and conditions of coverage mandated under this section, including, but not limited to, the minimum limits of coverage, the permissible deductible, and permissible exemptions. The department of business regulation shall seek the assistance of the real estate commission as to the terms and conditions of coverage.
(f) Each licensee shall be notified of the required terms and conditions of coverage for the annual policy at least thirty (30) days prior to the annual license renewal date. A certificate of coverage must be filed with the department of business regulation by the annual license renewal date by each licensee who opts not to participate in the group insurance program administered by the department of business regulation.
(g) Should the department of business regulation be unable to obtain errors and omissions insurance coverage to insure all licensees who choose to participate in the group insurance program at a reasonable premium, not to exceed one hundred dollars ($100) per year, the insurance requirement mandated by this section is void during the applicable contract year.
(h) The errors and omissions insurance requirement mandated by this section becomes effective April 30, 1991 .
SECTION 2. This act shall take effect upon passage.