WHEREAS, Real estate salespersons are required by section 5-20.5-25 of the general laws to carry and maintain errors and omissions insurance as a condition of maintaining the license; and
WHEREAS, The division of licensing and consumer protection for real estate, in the department of business regulation, requires the errors and omissions insurance whether or not the real estate salesperson actively engages in business; and
WHEREAS, An individual may wish to maintain his or her salesperson's license in order to keep career options open for the future, but not be actively participating in the listing or sale of real estate; and
WHEREAS, An inactive licensee does not incur the risks covered by errors and omissions insurance; now, therefore be it
RESOLVED, That this house of representatives of the state of Rhode Island and Providence Plantations hereby respectfully requests the director of the department of business regulation to study the feasibility of creating a two-tiered system of licensing for real estate salespersons, one category for licensees actively engaged in the listing and sale of real estate, and the other for inactive licensees for whom the requirement of errors and omissions insurance shall be waived; and be it further
RESOLVED, That the director be and he hereby is respectfully requested to consider clearly stating on the license the type of licensure granted as "active" or "inactive", and establishing as a crime of fraud the illegal use of an inactive license; and be it further
RESOLVED, That the secretary of state be and he hereby is authorized and directed to transmit a duly certified copy of this resolution to the director of the department of business regulation.