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2019 Legislative Session

Initiated by the Montana Association of REALTORS®
HB 416, Errors & Omissions Insurance Mandate
AN ACT REQUIRING PROFESSIONAL LIABILITY INSURANCE COVERAGE FOR REAL ESTATE BROKER AND SALESPERSON LICENSEES; PROVIDING FOR INSURANCE REQUIREMENTS; ALLOWING THE BOARD TO PROVIDE FOR A POLICY; REVISING THE DEFINITION OF “UNPROFESSIONAL CONDUCT”; AMENDING SECTION 37-51-321, MCA; AND PROVIDING A DELAYED EFFECTIVE DATE.

  1. Board of Realty Regulation will be providing a group policy. The cost of this could range from $100-300 annually per agent.
  2. E&O Policies must meet the minimum criteria:
    • Minimum per-claim limit of $100,000
    • Minimum annual aggregate limit of $300,000
    • Deductible maximum of $2,500 per claim for damages
    • Provide coverage that is specific to the real estate broker or salesperson licensee regardless of changed in supervising broker.
  3. Effective Date, November 1, 2020


Initiated by the Montana Association of REALTORS®
HB 367 Repeal the Real Estate Recovery Account

AN ACT REPEALING THE REAL ESTATE RECOVERY ACCOUNT; PROVIDING FOR THE TRANSFER OF REMAINING MONEY IN THE ACCOUNT TO THE HOUSING MONTANA FUND; REQUIRING CLAIMS MADE TO THE REAL ESTATE RECOVERY ACCOUNT TO BE COMPLETED BY JANUARY 31, 2021; AMENDING SECTIONS 17-7-502 AND 37-51-102, MCA; REPEALING SECTIONS 37-51-501, 37-51-502, 37-51-503, 37-51-504, 37-51-505, 37-51-506, 37-51-507, 37-51-508, 37-51-509, 37-51-510, 37-51-511, AND 37-51-512, MCA; AND PROVIDING EFFECTIVE DATES.

  1. This bill was dependent on the E&O bill, since the recovery account will no longer be required if all agents are operating with Errors &Omisions insurance. The additional payment made in licensing to the recovery account will be removed.
  2. Effective Date: October 1st 2019.

Supported by the Montana Association of REALTORS®
SB 269, Home Inspector Licensing

AN ACT PROVIDING FOR HOME INSPECTOR REGISTRATION WITH THE DEPARTMENT OF LABOR AND INDUSTRY; PROVIDING REQUIREMENTS, FEES, AND PENALTIES; PROVIDING RULEMAKING AUTHORITY; REMOVING NONCOMPLIANCE WITH HOME INSPECTOR REQUIREMENTS AS AN UNFAIR TRADE PRACTICE; AMENDING SECTIONS 39-9-101, 39-9-102, 39-9-206, 39-9-207, 39-9-211, 39-9-301, 39-9-303, AND 39-9-304, MCA; REPEALING SECTIONS 30-14-1001, 30-14-1002, 30-14-1003, AND 30-14-1005, MCA; AND PROVIDING A DELAYED EFFECTIVE DATE.

  1. In order to be registered, and home inspector must prove:
    1. has successfully completed a minimum of 40 hours of comprehensive home inspection instruction approved by the department or a passing grade on the national home inspector examination offered by the examination board of professional home inspectors or another national examination as provided by the department by rule;
    1. is a member of a national home inspection association; and
    1. is covered by liability insurance, a minimum of $100,000 coverage in errors and omissions insurance, and either workers’ compensation coverage or, if the home inspector is self-employed with no other employees and does not have workers’ compensation coverage, an independent contractor’s exemption certificate.
  2. Specific trades, like plumbers, contractors, etc. do not need to be licensed as a home inspector as long as they are “acting within the scope of practice of the individual’s profession or occupation.”
  3. Effective January 1st, 2020