E.L.M.’s Mortgage Banker/Broker Program to Include E&O

December 5, 2002

E.L.M. Insurance Brokers Inc., a specialist in professional liability, has tailored a new, comprehensive program for mortgage bankers and mortgage brokers that includes errors & omissions and financial institution bond coverages. The program has capacity of $25 million for both the E&O and the bond, and multi-year programs are available for both coverages.

The E&O liability form includes the following:

· Coverage for commercial, multi-family and residential mortgage loan activity.

· Standard mortgage impairment coverage.

· Optional Employment Practices Liability (EPL) coverage and loss prevention program.

· $250,000 in punitive damages coverage (where insurable by law).

· Coverage for independent contractors.

· No repurchase exclusion.

· No exclusions for emotional distress or mental anguish.

· No exclusion for claims arising from fees or charges.

Highlights of the Financial Institution Bond are as follows:

· The broadened fidelity agreement eliminates the need for a minimal financial benefit.

· Fraudulent document coverage for any loss suffered by the mortgage banker as a result of false information provided by a mortgage applicant.

· Computer fraud coverage.

· Claims expense coverage that pays the cost of a professional audit by a CPA if the audit determines that a loss actually occurred.

· Trading coverage.

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