an Arizona compliance file raises a financial-responsibility or surety-bond requirements question involving mortgage recovery fund liability is capped at $200,000 per transaction and $500,000 per licensee, and it is liable. Which statement is supported by the state rule?
Correct Answer
D) Arizona mortgage recovery fund liability is capped at $200,000 per transaction and $500,000 per licensee, and it is liable only against a natural-person license.
Arizona mortgage recovery fund liability is capped at $200,000 per transaction and $500,000 per licensee, and it is liable only against a natural-person license. Arizona mortgage recovery fund liability is capped at $200,000 for each transaction and $500,000 for each licensee, and the fund is liable only against the license of a natural person.
Why This Is the Correct Answer
The correct response is "Arizona mortgage recovery fund liability is capped at $200,000 per transaction and $500,000 per licensee, and it is liable only against a natural-person license." because Arizona mortgage recovery fund liability is capped at $200,000 per transaction and $500,000 per licensee, and it is liable only against a natural-person license.
Why the Other Options Are Wrong
Option A: Apply a familiar national rule without checking the state-specific condition.
Apply a familiar national rule without checking the state-specific condition. is not correct because it does not apply the rule tested by this file scenario.
Option B: Proceed first and document the compliance issue only if an examiner asks.
Proceed first and document the compliance issue only if an examiner asks. is not correct because it does not apply the rule tested by this file scenario.
Option C: Treat the requirement as optional because the file appears low risk.
Treat the requirement as optional because the file appears low risk. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
Arizona financial-responsibility or surety-bond requirements: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
Match the file facts to Arizona financial-responsibility or surety-bond requirements; do not choose an exception or shortcut that skips the required rule.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
More UST Questions
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