All active licensees (i.e. broker, salesperson, corporation, L.L.C., partnership, etc.) must carry uninterrupted errors & omission (E & O) insurance coverage in Iowa.
- An inactive license is a broker or salesperson whose license is on file with the Real Estate Commission as inactive. While a license is on inactive status, the licensee is precluded from engaging in any acts that require an active real estate license.
- A license issued to a firm, partnership, L.L.C., etc. cannot be placed on inactive status.
Proof of coverage must be provided in the following instances:
- Applications for initial license;
- Applications for reactivation of an inactive license that has been inactive for more than 20 days;
- If selected for a random E & O audit by the commission; and
- Transferring a license.
The group coverage insurance policy selected by the commission is with Rice Insurance Services Center (RISC.)
- While you are not required to obtain coverage from RISC, the commission strongly recommends reviewing IAC 193E--Chapter 19 before obtaining coverage through another carrier to better understand the requirements of coverage.