Colorado Mortgage Broker Errors and Omission Insurance is now Required
On November 13, 2007, the State of Colorado adopted an emergency rule requiring individual licensed mortgage brokers to carry errors and omission insurance effective January 1, 2008.
Listed below are the minimum required limits.
| Coverage |
Limit |
| General Aggregate (most paid in policy period) |
$300,000 |
| Per Claim |
$100,000 |
| Deductible Per Claim |
$5,000 |
| Annual Premium |
$500 (In Business more than 3 Years) |
| Annual Premium |
$600 (In Business less than 3 Years) |
Requirements:
- Must have a valid, in force license on file with the Colorado Division of Real Estate
- Must have an eligible surety bond in place (If you do not have the surety bond we can provide it)
- Completed and signed application and Supplemental Claim Form (if applicable)
- Sub prime lending less than 20% of your business with average FICO score of sub prime loan originations above 600
If you are working for a mortgage broker company who carries their own errors and omission insurance your deadline is not January 1, 2008, it is January 31, 2008.
Our agency can provide you with an errors and omission insurance policy to meet your requirement of January 1, 2008 or January 31, 2008 if you act now.
The policy is issued by the insurance company once they receive a signed application and approve it. We regret we cannot authorize coverage; the insurance company will do this. You may fax the completed and signed application to our office at (412) 281-6195 or e-mail it to gmagnus@ermunro.com.
Thousands of Mortgage Brokers now need this required insurance, the longer you wait the longer it will take to obtain approval. This can take seven business days from the time the application arrives in our office.
Should you have questions or wish to discuss the recent changes in your requirements with the State of Colorado, please contact Greg Magnus, Extension 157 or gmagnus@ermunro.com. He will be happy to review the insurance requirements with you. |
