Ocean State officials say resident insurance producers should have some insurance protection against errors and omissions.
A new Rhode Island law will require the state’s insurance producers to maintain E&O coverage starting Jan. 1, 2007, according to Rhode Island Department of Business Regulation Insurance Bulletin Number 2006-6.
“The failure to carry and maintain errors and omissions insurance may result in the suspension or revocation of the resident insurance producer license,” Rhode Island Insurance Superintendent Joseph Torti III warns in the bulletin.
But Torti notes that the law creating the E&O insurance requirement does not prescribe any minimum E&O coverage limits.
“Producers should use their best judgment in the purchase of the policy,” Torti writes.
A copy of the bulletin is on the Web at Document Link