Two-Year Errors & Omissions Insurance Policy Term Change-Effective January 1, 2025
The Nebraska Real Estate Commission is requiring for all policies written on or after January 1, 2025, the errors and omissions policy term to be changed from one year to two years. This requirement is for any active licensee who has errors and omissions insurance either with the Commission Offered Plan, an Individual Plan, or a Group Plan.
The requirement states: Any applicant for issuance of an original license on active status or the renewal of a license on active status, shall not be issued such active license unless he or she has submitted proof, or had proof submitted, of Errors & Omissions (E&O) Insurance coverage to the Nebraska Real Estate Commission office.
E&O Insurance may be acquired from any qualified carrier as long as the coverage is equivalent to that made available through the Real Estate Commission. We are notifying you directly since our records indicate that you have acquired coverage through a qualified carrier. (You will need to contact your provider to alert them of this change to ensure they have made the appropriate changes to comply with the two-year requirement on or before January 1, 2025.)
According to the Nebraska Department of Insurance (NDOI), they advised that policy holders “…check with the companies to see if they have any system constraints regarding issuing a two-year policy.” They indicated “If the insurance company has the ability to show the policy term as two years, there would not be a need to make a filing with the NDOI.” They also indicated that any changes that would require a filing would take no more that two weeks.
We are therefore trying to get this information to you, as a policy holder, in a timely manner so that you have time to work with the provider on this matter.
Licensees who are obtaining equivalent E&O Insurance independently of the Group Plan, and whose E&O Insurance coverage expires on or before January 2, 2025, must submit with the license renewal form, or must arrange to have submitted, a certificate of equivalent coverage which shows renewed coverage for two-years and is signed by an authorized insurance representative before their license will be renewed. It is the licensee’s responsibility to make sure that all filing deadlines are met.
In instances where a licensee's E&O coverage does not correspond to the calendar year, certifications of equivalent coverage for the new two-year policy period must be submitted on or before the current E&O expiration date in order to remain licensed on active status.
When a licensee fails to provide, or have provided, a certificate of equivalent coverage, or fails to have coverage certified to our office, his/her license shall immediately be placed on inactive status or will not be permitted to renew their active real estate license.
Active licensees that are licensed through License Recognition and have the equivalent Commission Offered plan, must adhere to the requirements of that plan, and proof of coverage is provided to the Nebraska Real Estate Commission annually on the form as prescribed by the Nebraska Real Estate Commission office.
