Under the regulations made under Ontario's Trust in Real Estate Services Act, 2002, how must registrants carry professional liability (errors and omissions) insurance?
Correct Answer
D) Under a group policy arranged and administered by RECO's board
O. Reg. 579/05 s. 11(2), made under the Trust in Real Estate Services Act, 2002, requires all registrants to be insured under a group insurance policy arranged and administered by the board of the administrative authority, RECO. The policy must include professional liability insurance and deposit insurance, and registrants pay their share of the premiums. Registrants may buy extra coverage but cannot opt out.
Why This Is the Correct Answer
A group policy arranged and administered by RECO's board is correct because O. Reg. 579/05 s. 11(2) requires all registrants to be insured under that policy. It is mandatory, not optional, and it is the regulation under TRESA that imposes it.
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