Tennessee Real Estate Exam Practice Question
Who among the following is EXEMPT from maintaining 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 exempt from maintaining errors-and-omissions insurance. This is because they are not actively engaged in real estate transactions and therefore do not expose themselves to the risks that necessitate such insurance.
Option A is incorrect as principal brokers are required to maintain this insurance to protect against potential errors in their active practice. Option C is also incorrect; while a licensed affiliate broker may benefit from their firm's liability insurance, they are still personally responsible for maintaining their own errors-and-omissions coverage. Option D is misleading; even if an affiliate broker focuses solely on leasing, they are still required to have insurance due to their active role in real estate activities.
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