One of the traditional requirements for individuals who wish to obtain a brokerage license has been to demonstrate financial capacity to cover damage judgments brought against them by clients. In order to address this concern, some states have required licensees to first obtain:
A) Private mortgage insurance (PMI)
B) Errors and omission insurance
C) Deposit insurance
D) Hazard insurance

Question

Quizplus · Accepted Answer

The traditional requirement for demonstrating financial capacity to cover damage judgments brought against them by clients can be fulfilled by obtaining errors and omission insurance. This insurance provides coverage for professionals in case a client alleges that they suffered financial harm as a result of a mistake or an omission by the professional. It is commonly required for many professional licenses, including brokerage licenses. Private mortgage insurance, deposit insurance, and hazard insurance are not relevant to this requirement.

One of the Traditional Requirements for Individuals Who Wish to Obtain