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| For information about the registration requirements for representatives appointed after December 31, 2006 to receive direct payment of fees, click here.
The CE requirements for the Demonstration Project have changed. Please see the CE page of our website for the updated requirements.
IMPORTANT! KEEP YOUR CONTACT and INSURANCE INFORMATION UP TO DATE!
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Insurance
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Aggregate coverage amounts have been reduced.
Types of Insurance
Non-attorney participants are required to have professional liability insurance, or equivalent insurance, which the Commissioner has determined to be adequate to protect claimants in the event of malpractice by the non-attorney representative. The insurance policy must be underwritten by a business entity that is legally permitted to provide professional liability insurance in the State in which the non-attorney representative conducts business. The policy also must provide coverage for professional liability insurance claims made in those States in which the non-attorney representative represents claimants before SSA.
Prior Per Incident Coverage Requirements
Previously applicants were required to have professional liability insurance coverage of errors and omissions committed by the non-attorney representative, with a minimum total annual aggregate coverage of $1 million (for all incidents in that year) plus per incident coverage of $250,000. Subsequently, the per incident coverage requirement was reduced to $100,000.
Also, it was determined that business liability insurance would be considered equivalent coverage, if the business insurance provides protection for the claimant equaling that provided under the requirements established for personal professional insurance for both the per incident and aggregate coverage.
New Aggregate Coverage Requirements
After further consideration, and based on experience gained in the first application period, the Commissioner has now decided to reduce the minimum annual aggregate coverage. An individual must still carry professional liability insurance coverage of at least $100,000 per incident, but the annual aggregate coverage has been reduced to $500,000. Under a business policy, the minimum per incident coverage remains at $100,000, but the minimum annual aggregate coverage required will be determined in accordance with the following schedule—
| Number of Covered Employees | Minimum Aggregate Amount |
| 1 to 10 | $500,000 |
| 11 to 25 | $1 million |
| 25 to 50 | $2 million |
| 51 to 100 | $3 million |
| 101 to 200 | $4 million |
| 201 or more | $5 million |
An applicant who fails to submit proof of the required insurance before the application period closes shall be precluded from establishing, based on his or her current application, eligibility to take the examination and to participate in the demonstration project. However, the applicant may re-apply to participate in the demonstration project during a subsequent application period.
Non-attorney representatives who establish eligibility to participate in the demonstration project will be required to maintain their insurance coverage in order to continue to receive direct fee payments from SSA.
REMEMBER, your liability insurance must be current for you to be eligible to participate in the demonstration project. For example, you take the exam on November 15, 2005 and your insurance lapses on December 1, 2005. You are notified on December 15, 2005 that you achieved a passing score. You will not be eligible to participate in the demonstration project, regardless of your test score, until you notify us that you have again obtained the necessary liability insurance and we verify that your coverage meets minimum demonstration project requirements.
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