What is the stated coverage limit and deductible under the Real Estate Errors and Omissions Corporation per licensee?

• A. Up to 5 million coverage per licensee with a $5,000 deductible
• B. Up to 1 million coverage per licensee with a $2,000 deductible (Brokerage also pays)
• C. Up to 500k coverage per licensee with a $1,000 deductible
• D. No coverage is described

Answer: (B)

This question tests knowing the exact stated coverage terms for Real Estate Errors and Omissions Insurance per licensee. The policy provides up to 1,000,000 in coverage for each licensee, with a 2,000 deductible. An important detail is that the brokerage also pays the deductible, which affects how much the licensee-out-of-pocket would be in a claim. This combination of limit and deductible is what makes this option the best fit to the policy terms. The other figures (higher or lower limits or different deductibles) don’t match the stated terms.