TREC E&O Form?

[Michael R. Boyett]

Looks like TREC answered some of your questions today John. See the 10/1 revisions to the proposed rules http://www.trec.state.tx.us/pdf/arti...ule_200709.pdf

[Bruce Thompson]

Michael,

Is it an open meeting? Should we all try to attend?

Bruce

[Barry Adair]

TAREI's spin

Fellow Colleagues,
This past week, I requested a meeting be established with TAREI & TREC members. J.D. Fuller, TAREI President-Elect and Andrea Barnard, TAREI Executive Director met with new TREC Administrator Tim Irvine, TREC General Council Loretta DeHay & Staff Attorney Devon Bijansky.

Mr. Irvine presented some information regarding historic aspects of the Fast Track Program. Ms. DeHay then suggested the Emergency Rules are needed quickly but TREC is certainly open for suggestions to present to the TREC Commissioners on the 8th.
Once these comment(s) are voted on, they will post for public comment. Once the public has had time to respond, TREC will suggest a rule change according to the respective feedback received.

All present are in agreement that the “intent” of this ruling is to make the Fast Track program more difficult than the previous version. The current proposed version actually makes this process easier for an Inspector to obtain his/her Inspector license.
TAREI’s suggestion for TREC Staff consisted the following for the Fast Track program:
128 core hours
320 additional education hours
120 hands-on and/or simulated training

This suggestion seemed to greatly satisfy all present. That said, our TAREI membership needs to contact the respective Commissioners to share our sentiments on this important issue. I would suggest planning on attending the TREC meeting October 8th to voice/share your sentiments.
Within the next couple of days, TAREI will send out a Position Statement for the general membership to use as a template to draft their own letter for the TREC Commissioners.
As always, TAREI will continue to the "voice" of the Inspection industry in Texas.
Thank you for your loyalty to our industry.
Sincerely,
Daniel F. South
TAREI President
2007-2008

[Michael R. Boyett]

Originally Posted by bthompson1

Is it an open meeting? Should we all try to attend?

The 10/8 TREC Commissioners meeting is most definitely an open meeting. The meeting room will hold around +/- 200 and is usually about 1/3 full. Remember the majority of TREC business has to do with Realtors so that is usually the bulk of the attendees and I have seen the agenda and will try to find it and post it here. I think it would be great for as many HI's to attend a TREC meeting as possible but, keep in mind that there is little to be accomplished at that meeting. From our perspective it would be more to hear first hand who the new Inspector Committee members are and to show the Commissioners that HI's are listening and concerned about some of the new rules. And that will only happen if one or two very articulate HI's voice our concerns in a succinct, professional manner. 6-8 guys ******** and moaning just isn't going to get the right point across. Don't expect to change anything at that meeting, go with the idea of gaining knowledge and perspective on how TREC business gets done.

Originally Posted by badair

This suggestion seemed to greatly satisfy all present.

That's just the problem though....those present don't have the clout to make anything happen. TAREI -vs- TREC -vs- TAR.....guess which way that pendulum swings. I have nothing against TAREI but they are not the 'voice of the inspection industry' in Texas or, if they are, then they are whispering. TAREI is simply not big enough nor funded well enough to have much impact.

OK, here's the agenda: TREC Agenda 100807.pdf

[John McKenna]

It is interesting that the President elect of TAREI lives down the road from
me and charges $190 for an inspection. I went to one TAREI conventions
and attended a marketing class where we were taught how to please the
Realtors. It made me sick.

I really don't see TAREI as much of voice for anything... IMHO.

[Michael R. Boyett]

Originally Posted by mboyett

Look at the bottom of the form where it says:
"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;"

...there may be no E&O policy that provides the above. I think I shall pose that question to my E&O provider....i.e. does it insure for the above?

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":

Your Premises Liability Endorsement should cover their requirement.
Attached is the Texas Real Estate Commission certiciate required to renew your license. Also, attached is the Evidence of Liability Insurance that states in the "Description of Operations" section the Premises Liability Endorsement.

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

[Barry Adair]

Originally Posted by mboyett

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!

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.

[Michael R. Boyett]

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.

[rcleveland]

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.

[Bruce Thompson]

Originally Posted by rcleveland

It is unfortunate that the state has ruled with the E&O insurance without examining the cost of the insurance with the HIs.

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

[Barry Adair]

Originally Posted by mboyett

Sorry Barry, I'm not always the best communicator. 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.

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.

[John Cahill]

Originally Posted by badair

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.

[John Cahill]

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?

[Michael R. Boyett]

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.

[rdawes]

Michael,

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

Originally Posted by mboyett

Looks like TREC answered some of your questions today John. See the 10/1 revisions to the proposed rules http://www.trec.state.tx.us/pdf/arti...ule_200709.pdf