Tennessee Real Estate License Exam Practice Question
Which of the following licensees need NOT carry errors and omissions insurance, according to Tennessee real estate laws?
Correct Answer: B
Rationale: In Tennessee, a licensee whose license is in retired status is not actively engaging in real estate transactions, thus eliminating the need for errors and omissions insurance.
Option A is incorrect because principal brokers must maintain insurance to protect against potential claims. Option C is also wrong; while a licensed affiliate broker may work for a firm with liability insurance, they are still required to carry their own errors and omissions insurance. Option D is misleading; even if an affiliate broker focuses solely on leasing contracts, they still need insurance to cover any potential errors in their professional duties.
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