A Michigan real estate broker must maintain errors and omissions insurance of at least:
Question & Answer
Review the question and all answer choices
$50,000
The $50,000 figure represents E&O requirements in some other states but not Michigan. Students often confuse Michigan's requirements with neighboring states or states with similar regulatory structures.
$100,000
The $100,000 amount may reflect E&O requirements in certain states for specific types of licenses or higher-risk practices, but Michigan does not mandate this coverage amount for real estate brokers.
No E&O requirement exists
$250,000
The $250,000 figure is significantly higher than E&O requirements in most states that do mandate coverage. This option may represent coverage amounts recommended by professional associations but not state requirements.
Why is this correct?
Michigan does not require real estate licensees to carry errors and omissions insurance, though it is highly recommended for professional protection. The Michigan Occupational Code establishes licensing requirements but does not include E&O insurance as a mandatory requirement.
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