Friday, April 8, 2011

Some Appraiser E&O Policies Now Exclude FDIC or Other Regulatory Agency Claims

Note: this post has been updated since it first appeared.  Appraiser E&O policies are changing rapidly in the present litigation environment and an appraiser's policy terms may change from policy year to year.  This may be the first year that some appraisers see an FDIC exclusion in the policies they purchase.  At this time, no policies issued by LIA contain FDIC exclusions and I believe no policies from Intercorp and FREA contain such exclusions either.  Here are a few examples of what to look for with respect to FDIC exclusions in various policies:

The exclusion below is found within the main policy text of the Five Star/Lloyd's policies I have seen in 2011.  It excludes:

General Star has indicated it will apply the following endorsement to E&O policies issued after June 1, 2011 to appraisers with prior acts before August 1, 2008:


The following "regulatory claims" endorsement is added to policies issued by Navigators Insurance Company in some states (I believe the states are: Arizona, California, Florida, Georgia, Illinois, Michigan, Nevada, and Washington):


The exclusion below is contained in endorsements to some E&O policies sold by CNA to appraisers (it is not clear how often the endorsement is applied):