Tenn. Code Ann. § 62-13-112 (2026)

• (a) Each licensee who is licensed under this chapter shall, as a condition to licensing, carry errors and omissions insurance to cover all activities contemplated under this chapter. The requirements of this section shall not apply to acquisition agents.

• (b) It is not mandatory that a person who has been issued a firm license obtain errors and omissions insurance in the name of the firm. Persons issued a firm license by the Tennessee real estate commission shall have the option of obtaining errors and omissions coverage in the name of the firm in addition to the mandatory individual coverage for the brokers and affiliate brokers within the firm.

• (c) The commission shall make the insurance required under this section available to each licensee by contracting with an insurance provider for errors and omissions insurance coverage for each licensee after competitive, sealed bidding in accordance with title 12, chapter 3.

• (d) Any policy obtained by the commission shall be available to each licensee with no right on the part of the insurance provider to cancel coverage for any licensee, other than as set forth by the commission and in compliance with § 56-7-1803.

• (e) Each licensee shall have the option of obtaining errors and omissions insurance independently, if the coverage contained in an independently obtained policy complies with the minimum requirements established by the commission.

• (f) The commission shall determine the terms and conditions of coverage required under this section, including, but not limited to, the minimum limits of coverage, the permissible deductible and the permissible exemptions.

• (g) Each licensee shall be notified of the required terms and conditions of coverage for the policy at least thirty (30) days before the licensee's renewal date. A certificate of coverage, showing compliance with the required terms and conditions of coverage, shall be filed with the commission by the license renewal date by each licensee who elects not to participate in the insurance program administered by the commission.

• (h) If the commission is unable to obtain errors and omissions insurance coverage to insure all licensees who choose to participate in the insurance program at a reasonable premium, in such amount as determined by the commission, the requirement of insurance coverage under this section shall be void during the applicable contract period.

• (i) The errors and omissions insurance coverage required by this section shall become effective as a condition of license granting or renewal on December 31, 1990.

• (j)
  • (1) If a licensee fails to obtain, maintain or renew the licensee's errors and omissions insurance which meets or exceeds the minimum requirements established by the commission and provide proof of compliance to the commission if such proof is required by subsection (g), then the licensee's license shall be suspended.
  • (2) The commission shall send notification of the license suspension by regular mail:
    • (A) To the licensee at the last known business address and home address of the licensee as registered with the commission; and
    • (B) To the licensee's broker at the broker's address as registered with the commission.
  • (3) While a license is suspended pursuant to this section, the licensee shall not engage in activities which require a license under this chapter, nor will the license be renewed or a new license issued. Any license suspended pursuant to this section shall remain suspended until the licensee establishes, to the satisfaction of the commission, compliance with this section.
  • (4) The licensee may, upon written notice to the commission, request a formal hearing on any license suspended pursuant to this section.

• (k)
  • (1) A license suspended pursuant to this section shall be reinstated if, within thirty (30) days of suspension, the licensee provides proof of insurance that complies with the required terms and conditions of coverage to the commission without the payment of any fee.
  • (2) A license suspended pursuant to this section shall be reinstated if, on or after thirty-one (31) days of suspension, the licensee provides proof of insurance that complies with the required terms and conditions of coverage to the commission and the licensee pays:
    • (A) For a license suspended more than thirty (30) days but less than one hundred twenty (120) days, a penalty fee of not more than five hundred dollars ($500); or
    • (B) For a license suspended for more than one hundred twenty (120) days but less than one (1) year, a penalty fee of five hundred dollars ($500), plus an additional penalty fee of not more than one hundred dollars ($100) per month for months six through twelve (6-12).

• (l)
  • (1) A license suspended more than one (1) year pursuant to this section shall be automatically revoked without any further action by the commission.
  • (2) The commission shall send notification of the license revocation by regular mail:
    • (A) To the licensee at the last known business address and home address of the licensee as registered with the commission; and
    • (B) To the licensee's broker at the broker's address as registered with the commission.
  • (3) The licensee may, upon written notice to the commission, request a formal hearing on any license revoked pursuant to this section.
  • (4) Upon revocation of license, any individual seeking reissuance of such license shall reapply for licensure and pay the penalty fees in subsection (k); provided, however, that the commission may, in its discretion:
    • (A) Waive reexamination or additional education requirements for such an applicant; or
    • (B) Reinstate a license subject to the applicant's compliance with such reasonable conditions as the commission may prescribe, including, but not limited to, payment of a penalty fee, in addition to the penalty fee provided in subdivision (k)(2)(B), of not more than one hundred dollars ($100) per month, or any portion thereof, from the time of revocation.

• (m) Notwithstanding subsections (k) and (l), if the licensee proves to the commission that the license suspension or revocation pursuant to subsections (k) or (l) was in error and that the licensee obtained, maintained or renewed the licensee's errors and omissions insurance as required by this section, then the commission shall immediately reinstate the license to the date of suspension.

Amended by 2013 Tenn. Acts, ch. 84, s 1, eff. 7/1/2013.

Acts 1989, ch. 79, § 1; 1991, ch. 305, § 1; 2002, ch. 812, § 4.