Unit 4: Real Estate Brokerage Exam
Questions & Answers (Grade A+)
Brokerage -
correct answer✅Is considered a legal entity and has the same
rights as a person.
Broker's license -
correct answer✅Associates and Associate Brokers must have 2
years experience within previous 5 years and be able to be
employed as the broker by a brokerage.
*Note: a brokerage can only have one licensed broker!!!
Homeowner's insurance -
correct answer✅Business tools and equipment may be subject to
loss, theft, damage and may be covered under this type of
insurance, subject to certain limitations and restrictions.
Vehicle insurance -
correct answer✅REPs may be required by their brokerage to
provide proof of insurance for business use of their vehicle as well
as having a certain level of liability coverage as part of their policy.
, Unit 4: Real Estate Brokerage Exam
Questions & Answers (Grade A+)
CGL -
correct answer✅Comprehensive General Liability Insurance
A policy that provides broad coverage for claims made against the
insured for bodily damage to property of others for which the
insured may become liable and which arise out of the insured's
business.
Professional Liability -
correct answer✅(aka REIX)
Errors and Omissions Insurance (E&O insurance), protects the
insured against legal actions (eg. lawsuits) arising from the
professional services rendered.
Actuary -
correct answer✅A person who compiles and analyzes statistics
and uses them to calculate insurance risks and premiums.
(Ie. REIX premiums are determined by annual indemnities paid (a
sum of money paid as compensation) and potential claims in
progress.)
Questions & Answers (Grade A+)
Brokerage -
correct answer✅Is considered a legal entity and has the same
rights as a person.
Broker's license -
correct answer✅Associates and Associate Brokers must have 2
years experience within previous 5 years and be able to be
employed as the broker by a brokerage.
*Note: a brokerage can only have one licensed broker!!!
Homeowner's insurance -
correct answer✅Business tools and equipment may be subject to
loss, theft, damage and may be covered under this type of
insurance, subject to certain limitations and restrictions.
Vehicle insurance -
correct answer✅REPs may be required by their brokerage to
provide proof of insurance for business use of their vehicle as well
as having a certain level of liability coverage as part of their policy.
, Unit 4: Real Estate Brokerage Exam
Questions & Answers (Grade A+)
CGL -
correct answer✅Comprehensive General Liability Insurance
A policy that provides broad coverage for claims made against the
insured for bodily damage to property of others for which the
insured may become liable and which arise out of the insured's
business.
Professional Liability -
correct answer✅(aka REIX)
Errors and Omissions Insurance (E&O insurance), protects the
insured against legal actions (eg. lawsuits) arising from the
professional services rendered.
Actuary -
correct answer✅A person who compiles and analyzes statistics
and uses them to calculate insurance risks and premiums.
(Ie. REIX premiums are determined by annual indemnities paid (a
sum of money paid as compensation) and potential claims in
progress.)
