SECTION 660:11-7-21. Errors and omissions coverage

(a)   Every investment adviser who is required to maintain an errors and omissions insurance policy under 660:11-7-11 must submit proof of an errors and omissions insurance policy to the Department as condition of registration.

(b)   Every investment adviser registered under Section 1-406 of the Securities Act must submit proof of an errors and omissions insurance policy annually as set forth in 660:11-7-31.

(c)   If subject to 660:11-7-11, proof of insurance may be demonstrated by submitting to the Department an attestation of compliance on a form approved by the Administrator and a policy declaration page, or a certificate of liability coverage specifying errors and omissions coverage. For purposed of compliance with 660:11-7-31, proof of insurance may be demonstrated by submitting to the Department an attestation of compliance on a form available on the Department's website.

(1)   An attestation must include:

(A)   The name of the insurer;

(B)   The policy number;

(C)   Name of the insured; licensee; and

(D)   Date of the policy period.

(2)   For purposes of compliance with this Section, 660:11-7-11, and 660:11-7-31, a policy may not contain exclusions for investment management and advisory services performed in this state on behalf of the investment adviser or for persons performing investment management and advisory services in this state on behalf of the investment adviser.

(3)   The requirements for this insurance may be fulfilled by a policy provided through membership in a professional association so long as the requirements are otherwise met, or at the discretion of the Administrator.

(4)   The requirements for this insurance may be fulfilled by the policies of one or more insurance carriers which policies together meet such requirements.

(d)   For purposes of this rule, policies written by admitted or authorized insurers, registered surplus lines insurers, and registered risk retention and purchasing groups will satisfy the errors and omissions requirement of 660:11-7-11 and 660:11-7-31.

(e)   Every investment adviser registered under Section 1-406 of the Securities Act shall immediately notify the Department in writing if its errors and omissions insurance policy is cancelled, terminated, or substantially modified.

[Source: Added at 37 Ok Reg 2194, eff 11-1-20]