Title 201 | Chapter 011 | Regulation 220
201 KAR 11:220.Errors and omissions insurance requirements.
Section 1.
Minimum Coverage Requirements. A licensee shall carry continuous errors and omissions coverage that, at a minimum includes:(1)
A limit of liability not less than $100,000 for any one (1) claim, excluding the cost of investigation and defense; and(2)
An annual aggregate limit of liability of not less than $1,000,000, excluding the cost of investigation and defense.Section 2.
Firm Coverage. A principal broker who purchases errors and omissions "firm coverage" insurance shall have at least the following aggregate amounts:(1)
One (1) to forty (40) licensees shall carry a $1,000,000 annual aggregate; or(2)
Forty-one (41) or more licensees shall carry a $2,000,000 annual aggregate.Section 3.
Deductibles. All errors and omissions coverage or professional liability insurance policies shall have maximum deductibles, which may be separate deductibles, which shall not exceed:(1)
$2,500 for judgment or settlement; and(2)
$1,000 for the cost of investigation and defense.Section 4.
Exclusions permitted Coverage may exclude claims brought against the insured, regardless of whether the professional service involves an activity for which a license is required by the Commonwealth of Kentucky, consistent with common custom in the market.Section 5.
Licensee certification of compliance. A licensee who chooses to obtain an insurance policy other than the group insurance policy obtained by the commission pursuant to KRS 324.395(3) shall file with the commission a Certification of Insurance Coverage, KREC Form 203, as incorporated by reference in 201 KAR 11:210, annually upon issuance of the initial private insurance policy or its renewal.HISTORY: (14 Ky.R. 1021; eff. 12-11-1987; 1579; eff. 3-10-1988; 33 Ky.R. 449; 720; eff. 10-6-2006; 33 Ky.R. 3434; eff. 8-31-2007; 40 Ky.R. 365; 787; eff. 365; 787; eff. 11-1-2013; 46 Ky.R. 606; 1463; 18296; eff. 12-16-2019.)
201 KAR 11:220.Errors and omissions insurance requirements.
Section 1.
Minimum Coverage Requirements. A licensee shall carry continuous errors and omissions coverage that, at a minimum includes:(1)
A limit of liability not less than $100,000 for any one (1) claim, excluding the cost of investigation and defense; and(2)
An annual aggregate limit of liability of not less than $1,000,000, excluding the cost of investigation and defense.Section 2.
Firm Coverage. A principal broker who purchases errors and omissions "firm coverage" insurance shall have at least the following aggregate amounts:(1)
One (1) to forty (40) licensees shall carry a $1,000,000 annual aggregate; or(2)
Forty-one (41) or more licensees shall carry a $2,000,000 annual aggregate.Section 3.
Deductibles. All errors and omissions coverage or professional liability insurance policies shall have maximum deductibles, which may be separate deductibles, which shall not exceed:(1)
$2,500 for judgment or settlement; and(2)
$1,000 for the cost of investigation and defense.Section 4.
Exclusions permitted Coverage may exclude claims brought against the insured, regardless of whether the professional service involves an activity for which a license is required by the Commonwealth of Kentucky, consistent with common custom in the market.Section 5.
Licensee certification of compliance. A licensee who chooses to obtain an insurance policy other than the group insurance policy obtained by the commission pursuant to KRS 324.395(3) shall file with the commission a Certification of Insurance Coverage, KREC Form 203, as incorporated by reference in 201 KAR 11:210, annually upon issuance of the initial private insurance policy or its renewal.HISTORY: (14 Ky.R. 1021; eff. 12-11-1987; 1579; eff. 3-10-1988; 33 Ky.R. 449; 720; eff. 10-6-2006; 33 Ky.R. 3434; eff. 8-31-2007; 40 Ky.R. 365; 787; eff. 365; 787; eff. 11-1-2013; 46 Ky.R. 606; 1463; 18296; eff. 12-16-2019.)