Alabama License LawIntermediateAlabama Exam
A real estate broker in Alabama is required to maintain professional liability (errors and omissions) insurance:
AYes, it is required by AREC
BIt is not mandated by Alabama law but is highly recommendedCorrect
COnly for commercial transactions
DOnly for brokers with more than 5 licensees, as a general rule
Why It is not mandated by Alabama law but is highly recommended Is Correct
Answer B: It is not mandated by Alabama law but is highly recommended
Alabama does not currently mandate E&O insurance for real estate licensees by law, though it is strongly recommended as a risk management practice.
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State-Specific Concepts
AREC Regulation
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