Alaska License LawIntermediateAlaska Exam
Which of the following statements is TRUE about Alaska's requirement for errors and omissions (E&O) insurance?
AOnly brokers are required to carry E&O insurance
BAll active licensees must maintain E&O coverage as a condition of their licenseCorrect
CE&O insurance is optional for licensees with fewer than 5 years of experience, in general
DThe state provides group E&O coverage for all licensees at no charge
Why All active licensees must maintain E&O coverage as a condition of their license Is Correct
Answer B: All active licensees must maintain E&O coverage as a condition of their license
Alaska requires all active real estate licensees to maintain errors and omissions insurance as a condition of license activation. The license is automatically suspended if coverage lapses.
Key Alaska License Law Terms in This Question
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
State-Specific Concepts
License Law
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