Professional Liability Adjusters Insurance - IMPORTANT NOTICE
Amendments to the Insurance Agents & Adjusters Regulation were passed into law April 11, 2001, making these minimum requirements mandatory for residents and non-residents.
Under Section 385(5.1) of The Insurance Act of Manitoba and Section 16 of the Insurance Agents & Adjusters Regulation state all licensed adjusters must at minimum, maintain professional liability insurance in the amount of $1,000,000 in respect of any one occurrence with an overall policy aggregate of at least $1,000,000.
The policy will also include such elements as; coverage amounts that are exclusive of defense and investigative expenses; coverage for the insured's supervisory activities, if applicable and any unlicensed employee for whose acts the insured is responsible; and shall not be restricted to particular insurer's products. The coverage will include an extended reporting for a period of 12 months, and will include extended coverage for errors or omissions that were made before the inception of the insurance, provided that the errors and omissions were made on or after July 1, 2001 and the insured had no knowledge of the claims before the inception of the insurance.
You will be required to provide proof satisfactory to the Insurance Council of the existence of this policy when you are renewing your licence. The adjusters licence applications, including renewal applications, shall also require that the adjuster attest to having errors and omissions insurance in force, which is in compliance with this section, and that he or she shall immediately cease acting as an adjuster if such insurance ceases to be in force.
Pursuant to Section 385(8.1) of The Insurance Act of Manitoba, no licensed insurance adjuster shall carry on the activities of an insurance adjuster while he or she is not insured under a policy of liability insurance that meets the requirements of 385(5.1).
In addition, Section 385(8.2) of The Insurance Act of Manitoba states, a licensed insurance adjuster whose liability insurance lapses, or is cancelled by the adjuster or the insurer, shall notify THE INSURANCE COUNCIL OF MANITOBA without delay.
