Part 4 - Errors and Omissions Insurance

Division 2 - Requirements for Mortgage Brokers

Definitions

117 In this Division, "Brokerage" means mortgage brokerage.
  Resolution 2011-2

Duty to Carry Insurance
118(1) Every brokerage must have insurance against liability for errors and omissions and additional coverage for loss resulting from fraudulent acts in the carrying on of the business of a mortgage broker in accordance with these Rules. The errors and omissions insurance must:
(a) be in a form of insurance and terms and conditions approved by the executive director;
(b) include extended coverage for loss from fraudulent acts; and
(c) is sufficient to pay a minimum of:
  (i) $500,000 with respect to any one occurrence involving the mortgage brokerage or any broker or associate authorized to deal in mortgages on behalf of the mortgage brokerage; and
  (ii) $1,000,000 with respect to all occurrences during a 365-day period involving the mortgage brokerage or any broker or associate authorized to deal in mortgages on behalf of the mortgage brokerage.
118(2) Every mortgage brokerage shall, at all times while it holds an authorization, maintain errors and omissions insurance in the form of insurance and terms and conditions approved by the executive director.
  Resolution 2011-2


Continue with Part 4 Division 3 - Requirements for Real Estate Appraisers

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