Sec. 08.88.172. - Errors and omissions insurance. - Alaska Statutes

(a) A person licensed as a real estate broker, associate real estate broker, or real estate salesperson shall, as a condition of licensing, carry and maintain errors and omissions insurance to cover activities for which licensing is required under AS 08.88.161 .

(b) The department shall establish by regulation the terms and conditions of the errors and omissions insurance required by this section, including

(1) coverage requirements;

(2) limits of coverage;

(3) the maximum amount of premium to be charged licensees under a master errors and omissions policy under (d) of this section; and

(4) the method for adjusting these amounts based on the Consumer Price Index.

(c) A licensee may obtain the errors and omissions insurance required by (a) of this section by

(1) obtaining a master insurance policy that may be made available to licensees by the commission; or

(2) independently obtaining errors and omissions insurance that complies with the requirements established under (b) of this section.

(d) The commission may

(1) solicit bids for a master errors and omissions insurance policy for licensees that meets the minimum terms and conditions established under (b) of this section using a competitive sealed bid process under AS 36.30 (State Procurement Code); and

(2) charge a licensee a reasonable administration fee to recover costs incurred in connection with the solicitation made under (1) of this subsection.

(e) If the commission is unable to obtain a master errors and omissions insurance policy to insure licensees that meets the terms and conditions established under (b) of this section, the requirement that a real estate licensee carry and maintain errors and omissions insurance under AS 08.88.172 is void during the period that the commission is unable to obtain the insurance.

(f) A licensee seeking to obtain or renew a license shall certify to the commission that errors and omissions insurance has been obtained. A licensee who elects to independently obtain errors and omissions insurance shall provide a certificate of coverage with the application to obtain or renew a license.