Colorado License LawIntermediateColorado Exam
If a Colorado broker's E&O insurance lapses, the broker must:
AContinue practicing until the policy renewal date
BImmediately inactivate their license until new coverage is in placeCorrect
CNotify only the employing broker of the lapse
DFile a hardship exemption with the Division of Real Estate, in general
Why Immediately inactivate their license until new coverage is in place Is Correct
Answer B: Immediately inactivate their license until new coverage is in place
Colorado requires continuous E&O coverage as a condition of an active license. If coverage lapses, the broker must immediately inactivate their license and cannot practice until coverage is reinstated.
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