Errors and Omissions Insurance/Indemnity Fund Information for

State of: _____________________

Contact Person ______________________________ Phone _____________________

1. How long has E&O insurance been mandatory for real estate licensees? ___________

2. What were the motivations for making E&O insurance mandatory? ______________

____________________________________________________________________

____________________________________________________________________

_____________________________________________________________________

____________________________________________________________________

3. Did your state have an indemnity fund before E&O became mandatory?

Yes __________ No ___________

4. If yes for (3), how was the indemnity fund funded before E&O became mandatory?

____________________________________________________________________

5. Do you still have an indemnity fund?

Yes __________ No _________

6. If yes for (5), how much does it cost each year to administer the indemnity fund?

$_____________

7. If yes for (5), are licensees required to reimburse the indemnity fund for claims made

against them? Yes _________ No ___________

8. If yes to (5), are licensees suspended until they reimburse the indemnity fund?

Yes _________ No ________

9. If yes to (5), are brokers responsible for claims made against their salespeople?

Yes ________ No _________

10. If yes for (5), how is the indemnity fund currently funded?____________________

___________________________________________________________________

11. If yes to (5), what is the current balance in the indemnity fund? $ _____________

12. If yes to (5), what is the statutory minimum for the indemnity fund? $ ___________

13. If yes to (5), what was the number of claims on the fund during 2001? ___________

14. If yes to (5), what was the number of claims on the fund during 2002? ___________

15. If yes to (5), what was the number of claims on the fund during 2003? ___________

16. If yes to (5), what was the average claim amount during 2001? ___________

17. If yes to (5), what was the average claim amount during 2002? ___________

18. If yes to (5), what was the average claim amount during 2003? ___________

19. How many active real estate licensees in your state at year-end?

Brokers in 2001 _____________ 2002 ____________ 2003 ______________

Salespeople in 2001___________ 2002 _____________ 2003 ______________

20. What is the name of the insurance company(ies) your state is currently contracted

with to provide E&O insurance?_______________________________________

21. How long has this company been your designated coverage provider? ___________

22. Who is responsible for contracting with the E&O insurance company?

___________________________________________________________________

23. What state agency administers E&O program? ___________________________

24. How much does it cost annually to administer the state E&O program? $_____________

25. How frequently do you select an insurance company? _______________________

26. In the selection process, what system is used? (e.g., sealed bid) ________________

27. What is the current insurance contract period? ______________________

28. What other companies has the state contracted with for E&O insurance in the past?

___________________________________________________________________

29. If applicable, why did you last switch insurance companies?

__________________________________________________________________

30. What are the contract details of your current E&O insurance contract?

Annual premium __________________________ Paid by ___________________

Minimum coverage amounts _____________________________________________

Deductible amount____________________________________

Exclusions _________________________________________________________

31. Can licensees obtain coverage with another insurance company?

Yes _______ No ________

32. How many licensees are currently covered by the insurance company contracted with

the state?

Number of brokers ____________ Number of salespeople ______________

33. Is the percentage of licensees currently covered by the company contracted with the

state approximately the same as the percentage covered in previous years?

Yes _______ No ________ If No, please explain ___________________________

________________________________________________________________________

34. Please check the one of the following that best describes how satisfied you are with your state’s experience with mandatory E&O insurance coverage?

Very satisfied____ Satisfied____ Neutral____ Dissatisfied____ Very Dissatisfied____

35. What problems, if any, have been encountered with mandatory E&O insurance

coverage? ________________________________________________________________________

________________________________________________________________________

36. What do you consider to be the advantages of mandatory E&O insurance?

________________________________________________________________________

37. What do you consider to be the disadvantages of mandatory E&O insurance?

________________________________________________________________________

________________________________________________________________________

38. Does the company that currently provides your E&O coverage also provide other

insurance for the state? Yes ________ No _________

39. If yes to (38), why? (e.g., lower premium) _____________________________

40. What was the number of E&O claims during 2001? ___________

41. What was the number of E&O claims during 2002? ___________

42. What was the number of E&O claims during 2003? ___________

43. What was the average E&O claim amount during 2001? ___________

44. What was the average E&O claim amount during 2002? ___________

45. What was the average E&O claim amount during 2003? ___________

46. If you know, what is the AM Best rating for the company with which you are

currently contracted? ________________

47. Any other comments you would like to make?