Alabama License LawIntermediateAlabama Exam
If an Alabama licensee is named in a real estate lawsuit filed by a client, the licensee should:
AHandle the lawsuit personally without notifying anyone, under standard practice
BNotify their employing broker, E&O insurance carrier, and seek legal counselCorrect
CImmediately surrender their license to AREC
DSettle the lawsuit without involving insurance
Why Notify their employing broker, E&O insurance carrier, and seek legal counsel Is Correct
Answer B: Notify their employing broker, E&O insurance carrier, and seek legal counsel
A licensee who is sued should promptly notify their broker and E&O insurance carrier, and retain legal counsel. Failing to report a claim may void coverage.
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