Make sure the company is “Admitted” in your state, meaning they are approved by the state’s insurance department. Admitted companies must abide by the state’s insurance regulations, and will file their rates, rules, and forms with the state. The state will step in to back up claims if the insurance company fails (a safety net of sorts). Here’s a hint: if you have to pay a “State Tax” or “Stamp Fee”, the company is probably not Admitted.
Beware of non-admitted companies trying to sell E&O in your state. Because non-admitted companies don’t file their rates, rules and forms with each state, they can change rates or coverage whenever they want.
CRES Insurance operates as a Managing General Agent. In each state where we offer real estate E&O policies, we underwrite only for carriers that are licensed and admitted by the state’s real estate department. We don’t charge state tax or stamp fees, and you can rest easy knowing you’re with a company that complies with all state insurance regulations.
This blog/website is made available by CRES Insurance Services for educational purposes to give you general information and understanding of legal risks and insurance options, not to provide specific legal advice. This blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. Claims examples are for illustrative purposes only. Read your policy for a complete description of what is covered and excluded.
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