TREC E&O Form?

Here’s the response I received today from my E&O provider…this doesn’t fill me with confidence…‘should’…SHOULD? I wanna hear “WILL”:

Also, more importantly this means that it requires both my E&O and my General Liability to meet the TREC requirement!
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Michael,

Please elaborate, as usual I do not understand what “they” (insurer) or you are saying as to your post.

Did I say I dislike them as much as lawyers and their mumbo-jumbo.

Sorry Barry, I’m not always the best communicator. I’ll try to clarify:

  1. The Texas legislature passed a law requiring all Texas HI’s to carry 'liability insurance" to protect consumers against SOP errors.
  2. TREC interpreted that to mean E&O insurance ( and rightfully so I might add) but is getting a formal opinion from the state attorney general.
  3. TREC implemented ‘emergency’ rules to require proof of E&O when renewing your license.
  4. TREC published a form for you to use when providing that proof that says your insurance "*provides for professional liability insurance for the above named Inspector for *claims for property damage or bodily injury, regardless of whether the claim arises from a negligence claim or a contract claim;".
  5. That seemed, to me at least, to overstep the bounds of what E&O provides. For example, my E&O doesn’t provide for bodily injuries to my knowledge but I wanted my E&O provider to rule on that so I asked them.
  6. My E&O provider, which also provides my General Liability coverage, responded that my insurance ‘should’ cover TREC’s requirements but it would be the “Premises Liability Endorsement” that would cover a bodily injury not the E&O portion. I read “Premises Liability Endorsement” as my General Liability.

So, bottom line is that my insurance ‘should’ meet TREC requirements but to do so will need both my E&O and GL, neither of which have been required in the past. This is a very complicated issue and I don’t know if I was able to make it any clearer or not, I hope so though.

It is unfortunate that the state has ruled with the E&O insurance without examining the cost of the insurance with the HIs. We are left with jumping thru their hoops to make a living or to look for another type of career. I have just started the inspection business and the E&O is another expense that is taking $$ from the bottom line.

Attended one TAREI meeting and I thought I was in a room full of bubbas. Their spin on the E&O was to accept the inevitable and not fight the new ruling. I think they were all scared TREC. They were not aware of any new attendees much less welcoming. I think I saved myself some $$ by not joining that association.

I agree that TAREI does not represent the HIs. Since they do not represent for me then, I will represent myself and attend the October meeting in
Austin. I feel that if a number of HIs were to attend, it would show that we are concerned about the ruling and that it should be reconsidered or reevaluated. I plan on leaving early to attend the meeting and drive back to DFW afterwards. If anyone else would like to attend from the area we could caravan or carpool.

You may already understand, but I thought I’d clarify. The Atty. General has not given an opinion yet on the matter. I got on the AG online mailing list. Everytime an opinion is given I receive an email.

Bruce

MB,

Your communication skills are just fine.
I just didn’t understand what I quoted you saying in the previous post.

and ya buddy IT is very complicated and the talking heads have dug themselves into a hole and are looking for a way out (AG) the more they say or write the deeper it gets.

Next we’ll have to provide life, health, medical, dental, and eyewear, for all parties concerned.

Barry, I need to hire you for a job next week. I need all of the above. :wink:

Good question on “should” cover you. I suggest you make a statement to TREC that the form be modified so the insurnace company is required to assure TREC you are covered not “should be covered”. If an insurance company denies coverage TREC should disallow them from future coverage in Texas. SPCB had some type of underwriting compliance wording, I think.

I also suggest TREC require a tail to be provided. If you have claims made policy bought on 1-1-2007 and do an inspection on 12-31-07 the client has no protection one day later unless a tail is guaranteed.

How long a tail? 4 years?

Late today I did receive a formal reply and signed Certificate of Insurance from my E&O provider (which is a favorite of NACHI BTW) and it does state that the policy covers me for the acts mentioned by TREC. Actually, the certificate copies word for word in the description section what TREC is looking for. I feel better now but it still does take both the E&O and the GL to meet those requirements.

Michael,

Looks like TREC pulled the page you reference below. Comes up page not found now. Wonder why? Gonna change their mind yet again?

Looks like TREC did move the file on their servers for some reason. I glanced at the moved document and it is still called the 10/1 version and I don’t see any changes. Try: http://www.trec.state.tx.us/pdf/articles/trec/InspectorRule_20071001.pdf

Michael,

I did not save the document from the first version you posted but I thought for sure that for a Professional license it was 128 core, 320 additional, and 120 ride along. The latest version is 128, 200, 120 which is what John Cahill said a few posts back. Seems they have gotten back down to 448 total.

If this becomes rule, the next questions are (1) how many of us are magnanimous enough to help train our competition. (2) What will we charge for it? (3) Does it affect our liability? I can see some over zealous lawyer dragging me into a lawsuit because my ride along tuteledge wasn’t good enough to keep the new guy from missing something important on his 10th inspection. This bridge has been crossed no doubt in other states with similar ride along rules.

Ron,
You may be right on those numbers. TREC did change them when they published the 10/1/07 version of their proposal. I know they did want to make it the same or harder to use the fast track path, not easier, to get licensed.

Maybe I’m missing something but aren’t the ride-alongs pretty much the same process as has been in place forever for Real Estate Inspector licensing? Is it really anything different than what we’ve had in the past? Also, those ride-alongs to gain experience are only one way to gain that experience. A more likely way, I think, will be "completing an approved experience training module of at least 60 hours from an approved education provider" don’t you think? My experience and from what I’ve heard from others is that finding a sponsor to ride-along with is next to impossible.

Duh! I completely glossed over the experience training module clause when I scanned the document. Some detail oriented inspector I am! Was that in the first version?

Anyway, it seems the schools now have their bases covered again and can get on with business as usual, which of course, is the really important thing that had to be fixed.

So in a nut shell, what is the fastest way for an inspector to get his
license through education only (no previous experience credit).?

Tell me what you see and help me verify what I am seeing.

To what level? A Real Estate Inspector or a Professional Inspector? Here’s the bottom line in either case though, I think the 120 hours (or 30 hours for RE Inspector) required for the ‘experience training module’ is not clear if this is the same or an additional 120 hours that have always been required for the Professional level. So, for Professional it could be a total of 448 or 568 hours depending.

120 training module? Mmmm.
I guess the vendors can create some new ways to do this.

Latest from TAREI

Appears their membership duties supersede their E&O concerns, imagine that!

Funny how this was sent today, like we don’t have schedules to maintain as business operators.

I guess late is better than never

Y’all come on down now ya hear

Sent: Thursday, October 04, 2007 2:30 PM
Subject: TAREI Update
Dear TAREI Member,

As you are aware the upcoming TREC meeting on the 8th is important for you & your business. The two items of importance are the mandatory E & O insurance and the Education requirements as per HB1530 that went into effect September 1st.

Below are the “Fast Track” changes affecting the Inspection industry to section 1102.111 of HB 1530 by Rep. Flores.

Sec. 1102.111. SUBSTITUTE REQUIREMENTS. (a) The commission by rule shall provide for substitution of relevant experience and [or] additional education in place of:
(1) the number of real estate inspections required for licensing; and
(2) the requirement that an applicant be:
(A) licensed as an apprentice inspector before being licensed as a real estate inspector; or
(B) licensed as a real estate inspector before being licensed as a professional inspector.
(b) Rules adopted under Subsection (a) may not require an applicant to:
(1) complete more than 320 additional classroom hours of core real estate inspection courses; or
(2) have more than seven years of relevant experience.

TREC”s proposed Emergency Rule as of October 1st is as follows:
Ø Ø128 core hours
Ø Ø200 additional education hours
Ø Ø120 hands-on and/or simulated training

TAREI’s Position Statement that will be presented to TREC is:
Ø Ø128 core hours
Ø Ø320 additional education hours
Ø Ø120 hands-on and/or simulated training
We feel that these guidelines will produce a better educated Inspector and one who can serve the Consumer with confidence within his/her industry. Reducing the amount of additional education hours to 200, as proposed in the current draft of the Emergency Rule, does not serve the Consumer in providing them a well educated Inspector with real-world experience.
In addition, the original intent of HB1530 was not to decrease the amount of experience but, to require higher education prior to obtaining a license.
It is important to voice/share your concerns. We need your presence. If you are unable to attend, I would suggest contacting the TREC Commissioners before Monday’s meeting.

Thank you.

Sincerely,

Daniel F. South
TAREI President
2007-2008

*“Promoting excellence within *
*our profession by establishing *
*and maintaining the highest *
standards and ethics, since 1977”

Barry,

remind me again, who do TAREI represent ???:neutral:

Regards

Gerry

On the other hand the 10/8 TREC meeting has been widely publicized so it is not new news that it is scheduled. TAREI, formed in 1977, is the oldest and only state HI trade organization but only around 15% of the 4,250 Texas HI’s belong to TAREI. They just don’t have the clout to drive any legislation but they are not the bad guys that’s for sure. They do good things though and have very well attended and well thought of conferences and seminars. I’m not a member but I do attend their local monthly chapter meetings.