Posted by Saundra/OH on 2/7/05 5:31pm
Msg #19676

HEY DENNIS??

Does the CGL (I think that was it) coverage you were talking about take the place of the E&O, or should one have both? I wasn't too clear on that. Thanks.

Reply by Dennis D Broadbooks on 2/7/05 5:58pm
Msg #19679

E&O is a Totally Separate Coverage.

E&O stands for Errors & Omissions & this brings up another point. Currently there is no E&O coverage available for what we do as Signing Agents, only for our Notary work. In other words 90% of what we do is on us from a risk standpoint. An example some people have used in this area is the filling out of the RTC. If we fill in the wrong date & causes a problem later on down the line, we as signing agents could (and I stress COULD, not WILL) be held liable. If we make a mistake on our Notary work (fail to place our seal, etc) then that's where your Notary E&O Insurance comes into play.

Once again...I'm not giving insurance advice. Consult an insurance professional in your own state for the definitive answer in your situation.

Reply by Saundra/OH on 2/7/05 6:01pm
Msg #19680

Re: E&O is a Totally Separate Coverage.

Thanks for the input. Having some info allows one to ask better questions. Thanks again.

Reply by Paul/MD on 2/7/05 6:24pm
Msg #19682

Re: E&O is a Totally Separate Coverage.

Maryland just passed a law that Notaries MUST have specified E&O Insurance for any mistakes in closings. This is to coinside with a biannual License which we have - to obtain the license - you must compete a 30 hour course (about $350), pass an exam ($80) and be bonded ($550) [and to be bonded you must have at least $100,000 in net assets]. My understanding is the new E & O policy is about $750.

Reply by Maureen/nh on 2/7/05 8:18pm
Msg #19698

Re: E&O is a Totally Separate Coverage.

Who is providing this insurance and do you know if it is available outside of MD?

Reply by Paul/MD on 2/7/05 8:41pm
Msg #19702

E & O Insurance SPECIFICALLY for Notary Closers



"St. Paul Travelers 1st Choice" of ST PAUL FIRE AND MARINE INSURANCE COMPANY, of St. Paul, Minnesota, underwrites my policy. It is a specific policy for "Real Estate Professionals" where they cover Notary Closers. This policy was purchased through my insurance agent who sold me the bonding.

You may fax an inquiry directly to St Paul: 877-435-7775 and they will provide you with an agent in your area.

Reply by Dennis D Broadbooks on 2/7/05 8:55pm
Msg #19704

Very Interesting!

This is the first I've heard of any kind of E&O policy being made available to us as Signing Agents, although at $750.00 there won't be too many takers. I'm going to do some investigating to see if this is available in Missouri. Thanks for the "heads up" Paul!

Reply by Joan-OH on 2/7/05 10:33pm
Msg #19709

Keep in mind....

That in MD, they have a title producer's "license". Everywhere I looked for E&O coverage I was told the reason no one wrote it was because we were not licensed like RE Agents, Appraisers, Title Producers etc. I'm willing to bet someone outside of MD couldn't get it.

Dennis, if you find out differently, please let the board know. I would drop $750 for it in a New York Minute.

Joan-OH

Reply by Paul/MD on 2/8/05 12:14am
Msg #19725

Re: Keep in mind....

FYI -- The policy isn't just for a Notary. It's for 'Real Estate Professionals' - and as part of the policy it covers "Closing Agents".

I spoke with my agent this evening and he says that the policy is available in other states... just don't know if in every state.

Reply by Joan-OH on 2/8/05 7:28am
Msg #19735

Believe me, I'm on board with this one, but...

we are back to the dilemma of whether we are "closing agents" or signing agents. I do not disperse, I do not sign as closing agent....although most people use that term when referring to me.

Believe me, I'm going to check this out. If it can be written for those unlicensed Real Estate Professionals, I'm going to shout it from the mountaintops! Worrying about my liability sometimes keeps me up at nights. After 24 years with my husband, having raised 2 kids, it certainly makes me nervious that I could lose it in one bad slimey Ameriquest deal I've signed.

Thanks for the info

Joan-OH

Reply by Dennis D Broadbooks on 2/8/05 7:39am
Msg #19736

I've Just Sent a Fax to St Paul...

...and will appraise everyone as to the substance of their reply.

Reply by Joan-OH on 2/8/05 7:46am
Msg #19737

This is what I found on their site

Real Estate Professionals
Our errors and omissions protection is designed with your business in mind.
As a real estate professional, your top priority is to serve and protect your customers. But protecting yourself from potential liabilities is just as important. That's why you need coverage from St. Paul Travelers.
St. Paul Travelers offers real estate professionals a blended errors and omissions product with coverage to protect against a wide range of exposures. This coverage applies to any or all of the following services you perform:
Abstractor
Appraiser
Auctioneer
Closing officer
Escrow agent
Notary public
Property manager
Real estate agent or broker
Title agent

If this is true, I AM A HAPPY CAMPER! I'm calling my local guy today!

Joan-OH

Reply by Dennis D Broadbooks on 2/8/05 8:41am
Msg #19739

Good Job, Joan!

This does look promising. Unfortunately for me the independent agency I write through doesn't have a contract with St Paul Travelers. I may be doing some shopping with a competing insurance agency when all is said & done.

Reply by Art_MD on 2/8/05 9:31am
Msg #19740

when can I find this law? n/m

Reply by Paul/MD on 2/8/05 10:41am
Msg #19753

Re: when can I find this law? n/m

Art,

I can't find the caselaw. But was given it by my insurance agent after I was advised by Maryland Land and Title Association. I'm not trying to advertise for my agent, but you may contact him: Chesapeak Insurance Group, Brad Swanson 410-841-5320 - I'm sure he can fax/send it to you.

Reply by Loretta Reed on 2/8/05 8:53pm
Msg #19845

Re: when can I find this law? n/m

I carry my E&O and my bond with Brad Swanson and I usually hear from him if there is something I need to be aware of. I will call him tomorrow and find out what this big buzz is.