Errors and Omission Insurance
North Dakota requires all active licensees to carry errors and omission insurance, proof of which must be provided to the Commission office prior to issuing an active real estate license.
The North Dakota Real Estate Commission, in North Dakota Century Code (NDCC) §43-23-19 through §43-23-23, requires all licensees be covered by errors and omissions insurance (E&O), purchased by the licensee or firm.
North Dakota Administrative Code (NDAC) 70-02-05 details the E&O requirements for individuals with a North Dakota real estate license.
As an active individual licensee with a North Dakota real estate license, you have options to purchase your E&O insurance:
- You can purchase individual E&O insurance from Rice Insurance Service, Inc. The North Dakota Real Estate Commission negotiates an annual rate with Rice Insurance to provide E&O insurance to individual licensees. The insurance meets all the requirements in NDAC 70-02-05.
- Link to Rice Insurance at https://www.risceo.com/states/north-dakota/ for enrollment and other information.
- Prior to annual renewals, Rice Insurance sends information on their plan to all active licensees.
- You can purchase individual E&O insurance, or your firm can purchase E&O insurance for all of its licensees, from any other qualified insurance provider as long as the coverage meets the minimum coverage of not less than:
- $100,000 single-limit liability coverage for each licensee for each occurrence or claim made, not including the cost of investigation or defense, and
- An annual aggregate limit of not less than $500,000 for each licensee, not including the cost of investigation and defense.
- A designated broker may comply with this requirement by certifying coverages of a minimum of $500,000/$1,000,000, if all licensees associated with the broker are covered.
And the insurance provider must:
- Be an admitted carrier in North Dakota or an approved surplus lines carrier in the state in which the licensee resides, and
- Have coverage that contemplates all activities under NDCC 43-23-19 through 43-23-23.
As an active renewing licensee, you will be asked as part of your annual renewal if you have E&O insurance as an individual or through your firm, but you will not need to upload any proof of E&O with your renewal. Throughout the year,
- NDREC receives daily reports from Rice Insurance on licensees covered, and
- NDREC prompts firms with other insurance to provide proof of continuing E&O insurance coverage about a month before their current policy expires.
If you are an individual who resides in and is licensed in a state that has a mandated E&O insurance program, and you are also licensed in North Dakota, you meet the requirements for E&O insurance in North Dakota if you provide proof that you meet the E&O requirements of your state of residence.
As a newly licensed individual, a licensee activating an inactive license, or an active licensee transferring to a different firm:
- You will be prompted to submit proof of E&O insurance with Rice Insurance or another provider with your application to issue a license or your activation or transfer process.