(a) Licensees or applicants may obtain errors and omissions coverage independent of the group plan from any insurance carrier subject to the following terms and conditions: - (i) The insurance carrier is licensed and authorized by the Wyoming insurance department to write policies of errors and omissions insurance in this state and is in conformance with all Wyoming statutes.
- (ii) The insurance provider maintains an A.M. Best rating of "B" or better and Financial size category of class VI or higher.
- (iii) The policy, at a minimum, complies with all relevant conditions set forth in this rule and the insurance carrier so certifies in an affidavit issued to the insured licensee or applicant in a form specified by the Commission and agrees to immediately notify the Commission of any cancellation or lapse in coverage. Independent coverage shall provide, at a minimum, the following:
- (A) The contract and policy are in conformance with all relevant Wyoming statutory requirements.
- (B) Coverage includes all acts for which a real estate license is required, except those illegal, fraudulent or other acts which are normally excluded from such coverage.
- (C) Coverage cannot be canceled by the insurance provider except for nonpayment of premiums or fraud.
- (D) Coverage is for not less than $100,000 for each licensed individual and entity per covered claim, regardless of the number of licensees or entities to which a settlement or claim may apply, with an annual aggregate limit of not less than $500,000 per licensed individual and entity.
- (E) 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.
- (F) The ability of a licensee, upon payment of an additional premium to obtain an extended reporting period of not less than 365 days.
- (G) That the provider of the independent policy has executed an affidavit in a form or manner specified by the Commission attesting that the independent policy is in force and, at a minimum, complies with all relevant conditions set forth herein and that the provider will immediately notify the Commission in writing of any cancellation or lapse in coverage of any independent policy.
(b) Licensees or applicants who obtain equivalent coverage and wish to be on active status shall present the affidavit referred to in subsection (iii) of this section to the Commission: - (i) When renewing an active license, no later than at the time of renewal, or;
- (ii) Upon any request for reinstatement or activation of a license; or
- (iii) Upon application for an active license.
(c) Applicants for a license, activation, renewal and reinstatement shall certify compliance with this rule on forms or in a manner prescribed by the Commission. Any active licensee who so certifies and fails to obtain errors and omissions coverage or to provide proof of continuous coverage, either through the group carrier or directly to the Commission, shall be placed on inactive status: - (i) Immediately, if certification of current insurance coverage is not provided to the Commission; or,
- (ii) Immediately upon the expiration of any current insurance when certification of continued coverage is not provided. Certification of equivalent coverage shall be filed with the Commission by 5 p.m. on the date of expiration of coverage. If the certification is not filed on time, the Commission shall place the license on inactive status on that date.