Broker Williams operates in Florida without carrying errors and omissions (E&O) insurance. A consumer complaint is filed with FREC asking that Williams be disciplined for failing to maintain E&O coverage. Under current Florida law, what is the most likely outcome?
Correct Answer
C) No disciplinary action, because Florida does not require brokers to carry E&O insurance
Florida does not require real estate licensees to carry errors and omissions insurance. Because there is no statutory or FREC rule requiring E&O coverage, the complaint states no violation and no discipline can be imposed on that basis.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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