N.M. Admin. Code § 16.61.5.9

Current through Register Vol. 35, No. 19, October 8, 2024

Section 16.61.5.9 - TERMS OF COVERAGE

The group policy shall provide, at a minimum, the following terms of coverage:

A. coverage of all acts for which a real estate license is required, except those illegal, fraudulent or other acts which are normally excluded from such coverage;

B. an annual premium not to exceed the amount set by statute 61-29-4.2B NMSA 1978;

C. that the coverage cannot be cancelled by the insurance carrier except for non-payment of the premium or in the event a broker becomes inactive or has their license revoked or an applicant is denied a license;

D. pro-ration of premiums for coverage which is purchased during the course of the calendar year but with no provision for refunds of unused premiums;

E. not less than $100,000 coverage for each licensed individual and entity per covered claim regardless of the number of brokers or entities to which a settlement or claim may apply;

F. an aggregate limit of $500,000 per licensed individual or entity;

G. a deductible amount for each claim of not more than $1,000 per claim and no deductible for legal expenses and defense;

H. payment of claims by the provider shall be on a first dollar basis and the provider shall look to the insured for payment of any deductible;

I. the obligation of the insurance carrier to defend all covered claims with payment of defense costs outside of policy limits;

J. coverage of a broker's use of lock boxes which may include a sublimit of not less than $5,000 per claim for property damage or loss of use of property arising from a lock box claim;

K. the ability of a broker, upon payment of an additional premium, to obtain higher or excess coverage or to purchase additional coverage from the insurance provider as may be determined by the provider;

L. that coverage is individual and license specific and will cover the associate broker regardless of changes in qualifying broker;

M. an extended reporting period of not less than 365 days;

N. a conformity endorsement allowing a New Mexico resident broker to meet errors and omissions insurance requirements for an active license in another group mandated state without the need to purchase separate coverage in that state.

N.M. Admin. Code § 16.61.5.9

16.61.5.9 NMAC - N, 1-1-2002; A, 1-1-2006; A, 12-31-2008, Amended by New Mexico Register, Volume XXVII, Issue 22, November 30, 2016, eff. 1/1/2017