Mortgage Broker Licensing Practice Exam · Question
Scenario 7: What insurance must every licensed Ontario mortgage brokerage maintain?
Brokerages must maintain Errors & Omissions (E&O) insurance with coverage that includes loss arising from fraudulent acts, as required by FSRA. The correct answ
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Question: Scenario 7: What insurance must every licensed Ontario mortgage brokerage maintain?
Answer options:
- General liability only
- Title insurance for every transaction ✅ Errors and omissions insurance that includes fraud coverage
- Disability insurance for every agent
Correct answer: Errors and omissions insurance that includes fraud coverage
Explanation: Brokerages must maintain Errors & Omissions (E&O) insurance with coverage that includes loss arising from fraudulent acts, as required by FSRA. The correct answer is "Errors and omissions insurance that includes fraud coverage". This capacity-fill scenario 7 reinforces the same competency for the mortgage-broker bank and follows the certified explanation standard.
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Related Questions
- What is the typical time frame for a mortgage agent to provide the required disclosure statement to a client?
- Funds received from a client or investor that the brokerage holds on their behalf must be deposited into:
- Ontario mortgage agents must complete which of the following at each licence renewal?
- Which entity is responsible for licensing and regulating mortgage brokers and agents in Ontario?
- What is a 'material change' in relation to a client's mortgage application?
- Ethical behavior for a mortgage broker includes:
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Question explanations
- What is the typical time frame for a mortgage agent to provide the required disclosure statement to a client?
- Funds received from a client or investor that the brokerage holds on their behalf must be deposited into:
- Ontario mortgage agents must complete which of the following at each licence renewal?
- Which entity is responsible for licensing and regulating mortgage brokers and agents in Ontario?
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