If an Errors and Omissions policy is not renewed on the annual date of coverage, it is considered lapsed. As stated under Prior Acts coverage, E&O coverage must remain constant for claims to be reported for review and coverage is subject to underwriter approval. If the effective date is missed on purpose or by accident, it is considered a lapsed policy. On rare occasions with underwriting approval, lapsed policies can be reinstated to retain Prior Acts coverage.
If a policy is lapsed because of accounting issues, our accounting department does have the discretion to reinstate policies by charging an amount to make the policy current with a late fee.
If you have a lapse in E&O coverage, you can add the Full Prior Acts endorsement to cover all transactions since your original license date, whether you had E&O coverage at the time or not.
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.
Real estate brokers: do you really know what your agents are doing? Claims are on the rise due to agents’ “hidden”… https://t.co/VfBklIV9yIGive your sellers a CRES Qualified Home Warranty from First American. This includes 14 SEER compatibility, no cap o… https://t.co/X4pX5u66tZ