Kentucky License Law
Errors and Omissions (E&O) insurance in Kentucky for real estate licensees:
AIs optional for all licensees
BIs required and covers professional liability for errors in practice✓ Correct
CIs provided free by KREC to all licensees
DCovers intentional fraud by licensees
Explanation
Kentucky requires real estate licensees to carry errors and omissions (E&O) insurance, which covers unintentional mistakes and omissions in the performance of real estate services.
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Key Terms to Know
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.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
State-Specific Concepts
License Law
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