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Strata Management Licensing Practice Exam · Question

An agent licensed for strata management must maintain professional liability insurance. What is the minimum coverage required by the Real Estate Services Act Rules?

The Real Estate Services Rules, section 16(2), mandate that all licensees carrying on a strata management business must maintain professional liability insuranc

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Question: An agent licensed for strata management must maintain professional liability insurance. What is the minimum coverage required by the Real Estate Services Act Rules?

Answer options:

  • $500,000 per claim.
  • $1,000,000 per claim and $2,000,000 in the aggregate. ✅ $2,000,000 per claim and $4,000,000 in the aggregate.
  • There is no specific minimum, as long as it covers negligence.

Correct answer: $2,000,000 per claim and $4,000,000 in the aggregate.

Explanation: The Real Estate Services Rules, section 16(2), mandate that all licensees carrying on a strata management business must maintain professional liability insurance of at least $2,000,000 per claim and $4,000,000 in the aggregate minimum.

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