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September 19, 2012

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There are many frauds in Real Estate Brokery. When the people are not as vigilant as possible, they can be the next victim of those in syndicates. The only thing they can do is to be careful when agents come to them.

I FIND MYSELF INACTIVE, AND UNTIL I REACTIVATE NEED THE OPT ERP E&O INS THAT I NEED TO GET A NEW POLICY FOR 2014 ANYWAY ASAP. MY LAST E&O INS WAS WITH RISC/COLORADO. SHOULD I TALK TO THEM ABOUT TAIL INS?. UNTIL I PASS THIS COURSE TO REACTIVATE? J. D. WARD/ER157341 jimwardrmrsinc@yahoo.com

@ J.D.
The only time Tail Coverage will be available is at the time you inactivate or expire, so we would not recommend you try to get it at this time. There would still be a gap in coverage.

Instead, go ahead and finish the required education and then apply for a new policy (RISC is still a recommended company and the Group Policy carrier in Colorado, so they would be an excellent choice) at the time you prepare to submit your application to Activate.

In other words, first finish the course, then get the insurance, then submit the signed application to the Division of Real Estate. That is likely your best option at this time.

Tail coverage is on my to do list as the need arises.

Good advice!! I will first finish the course, then get the E&O insurance, then submit my signed application to DRE.
Thanks, GDP

Didn't realize I would need to continue E&O after I retire.

@Barbara - Keep in mind that having a policy for a period of time after retirement is a good idea, but how long you do that for should likely depend on a number of factors, including how long you were in business and how many/dollar volume of transactions you completed.

I have been practicing for almost 3 years and definitely feel protected having E&O!

Do I have to obtain E&O with my old provider in order to forego the 10 year requirement for past coverage?

In other words, if I obtain a new E&O policy with my old provider, does that save me from having to need tail coverage?

.@John the simple answer here is typically no.

Under the terms of any policy you can see if they will continue coverage beyond the year of coverage (or 10 years), but typically coverage ONLY goes through the end of the current period.

This means that you need to do one of two things to remain covered for an even that occurred previously. One, you can purchase tail coverage from the current carrier before leaving. Two, you can purchase prior acts coverage from your new carrier. In either case the prior acts coverage will likely only go back, and forward, for a defined period of time.

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