On March 26, 2015, the Ministry of Consumer Services launched a 45-day consultation regarding changes to the regulation governing the mandatory Real Estate Council of Ontario (“RECO”) insurance program for real estate registrants.
The ministry is seeking input on proposals to modernize the insurance requirements under the Real Estate and Business Brokers Act, 2002 for real estate Salespersons and Brokers.
Proposed amendments include:
- modernizing outdated terminology;
- stipulating that registrants are required to pay the insurance deductible;
- providing for the submission of individual applications by a specified date if an insurer requires it; and
- establishing prescribed minimum insurance coverage amounts.
TREB has been working with OREA, RECO and the Ministry over the past year and a half on changes to the insurance program for real estate registrants. Together, TREB and OREA have been fighting to retain and protect all three types of insurance coverage, which includes errors and omissions, commission protection and consumer deposit protection. We support the move to rename the term of errors and omissions to professional liability insurance.
TREB and OREA are also concerned with the proposal to remove maximum levels of coverage in the regulation as this could lead to higher claims, higher settlements and upward pressure on insurance premiums for registrants. For more information on our position, please click here to view OREA’s submission to the Ministry of Government and Consumer Services.
To help ensure changes to our industry’s insurance program are comprehensive, we are encouraging Members to provide their feedback to the province.
Click here to send your feedback.