Notice Of Proposed Changes Relating To Real Estate Errors And Omissions Insurance In The Regulations Of The Department of Commerce, Community, and Economic Development
Brief Description: The Department of Commerce, Community, and Economic Development proposes to update regulations regarding real estate errors and omissions insurance requirements, including minimum standards, exceptions to coverage, standards for equivalent coverage, notification for cancellation, maximum amount of premium, method of adjustment, and definition of terms.
The Department of Commerce, Community, and Economic Development (Department) proposes to adopt regulation changes in Title 12, Chapter 02 of the Alaska Administrative Code, dealing with real estate errors and omissions insurance requirements, including the following:
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12 AAC 02.510, Minimum standards, is proposed to be changed to alter the minimum standards for errors and omissions insurance policy coverage.
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12 AAC 02.520, Exceptions to coverage, is proposed to be changed to alter the provisions related to exceptions to coverage for claims brought against the insured licensee.
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12 AAC 02.530, Standards for equivalent coverage, is proposed to be changed to alter the minimum coverage standards, and providing that current certificates of insurance are current.
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12 AAC 02.540, Notification required for cancellation, is proposed to be changed to alter the reporting requirements for all covered employed licenses.
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12 AAC 02.550, Maximum amount of premium, is proposed to be changed to alter the maximum amount of premium to be charged a licensee annually.
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12 AAC 02.560, Method of adjustment, is proposed to be changed to alter the timing of the method of adjustment in the limits of liability for errors and omissions insurance policy.
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12 AAC 02.590, Definitions, is proposed to be changed to amend the definition of “errors and omissions insurance”.
You may comment on the proposed regulation changes, including the potential costs to private persons of complying with the proposed changes, by submitting written comments to Jun Maiquis, Regulations Specialist, Division of Corporations, Business and Professional Licensing, P.O. Box 110806, Juneau, AK 99811-0806. Additionally, the Department will accept comments by facsimile at (907) 465-2974 and by electronic mail at RegulationsAndPublicComment@alaska.gov. The comments must be received not later than 5:00 p.m. on October 13, 2016. Comments received after this deadline will not be considered by the Department.
Oral comments relevant to the proposed action, including the potential costs to private persons of complying with the proposed action, may be submitted at a hearing to be held on September 21, 2016, at the Atwood Building, 550 W. 7th Avenue, Suite 1270, Anchorage, Alaska. If you wish to give your comments via telephone during this meeting, please call 1-800-315-6338 access code 98168. The hearing will begin at 10:30 a.m. and will end when those who have signed up before 10:30 a.m. to give oral testimony have had the opportunity to comment. The chair of the Real Estate Commission may limit each participant’s length of oral testimony to a time limit, determined by the chair before the hearing begins, to allow enough time for all those present and timely registered to give testimony.
You may submit written questions relevant to the proposed action to Jun Maiquis, Regulations Specialist, Division of Corporations, Business and Professional Licensing, P.O. Box 110806, Juneau, AK 99811-0806 or by e-mail at jun.maiquis@alaska.gov. The questions must be received at least 10 days before the end of the public comment period. The Department will aggregate its response to substantially similar questions and make the questions and responses available on the Alaska Online Public Notice System and the Department’s website at https://www.commerce.alaska.gov/web/cbpl/ProfessionalLicensing/RealEstateCommission.aspx. The Department may, but is not required to, answer written questions received after the 10-day cut-off date and before the end of the comment period.
If you are a person with a disability who needs a special accommodation in order to participate in this process, please contact Jun Maiquis at (907) 465-2537 or jun.maiquis@alaska.gov not later than September 16, 2016 to ensure that any necessary accommodations can be provided.
A copy of the proposed regulation changes is available on the Alaska Online Public Notice System and by contacting Jun Maiquis at (907) 465-2537 or jun.maiquis@alaska.gov, or go to https://www.commerce.alaska.gov/web/portals/5/pub/REC-EO-Insurance-0916.pdf.
After the public comment period ends, the Department will either adopt the proposed regulation changes or other provisions dealing with the same subject, without further notice, or decide to take no action. The language of the final regulation may be different from that of the proposed regulation. You should comment during the time allowed if your interests could be affected. Written comments and questions received are public records and are subject to public inspection.
Statutory Authority: AS 08.88.081; AS 08.88.172
Statutes Being Implemented, Interpreted, or Made Specific: AS 08.88.081; AS 08.88.172
Fiscal Information: The proposed regulation changes are not expected to require an increased appropriation.
DATE: 9/9/16
Jun Maiquis, Regulations Specialist Division of Corporations, Business and Professional Licensing
For each occupation regulated under the Division of Corporations, Business and Professional Licensing, the Division keeps a list of individuals or organizations who are interested in the regulations of that occupation. The Division automatically sends a Notice of Proposed Regulations to the parties on the appropriate list each time there is a proposed change in an occupation's regulations in Title 12 of the Alaska Administrative Code. If you would like your address added to or removed from such a list, send your request to the Division at the address above, giving your name, either your e-mail address or mailing address (as you prefer for receiving notices), and the occupational area in which you are interested.
ADDITIONAL REGULATION NOTICE INFORMATION
(AS 44.62.190(d))
1. Adopting agency: Department of Commerce, Community, and Economic Development, Division of Corporations, Business and Professional Licensing.
2. General subject of regulation: Real Estate Errors and Omissions Insurance.
3. Citation of regulation: 12 AAC 02.510 – 12 AAC 02.590.
4. Department of Law file number: To be assigned.
5. Reason for the proposed action: Update and clarification of current regulations.
6. Appropriation/Allocation: Corporations, Business and Professional Licensing – #2360.
7. Estimated annual cost to comply with the proposed action to:
A private person: Increase amount of up to $2,500 premium for an E & O Insurance policy.
Another state agency: None known.
A municipality: None known.
8. Cost of implementation to the state agency and available funding (in thousands of dollars): No costs are expected in FY 2017 or in subsequent years.
9. The name of the contact person for the regulation:
Sharon Walsh, Executive Administrator
Alaska Real Estate Commission
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community, and Economic Development
Telephone: (907) 269-8197
E-mail: sharon.walsh@alaska.gov
10. The origin of the proposed action: Division of Corporations, Business and Professional Licensing and the Real Estate Commission.
11. Date: 9/9/16
Prepared by: Jun Maiquis
Regulations Specialist
(907) 465-2537