Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following statements is correct about the RECO Insurance Program?

1. A broker’s license is required to trade real estate.

2. A salesperson must hold a university degree to trade.

3. A broker or salesperson cannot trade in real estate unless required premiums are paid and coverage is maintained.

4. The program is renewed at the end of each calendar year.

5. The program includes legal assistance for disputes.

6. The program provides insurance up to a specific deductible amount.

The correct answer is: A broker or salesperson cannot trade in real estate unless required premiums are paid and coverage is maintained.

The correct statement about the RECO Insurance Program is that a broker or salesperson cannot trade in real estate unless required premiums are paid and coverage is maintained. This is an essential requirement for real estate professionals to be able to operate legally in Ontario. Option A is incorrect because a broker's license is not directly related to the RECO Insurance Program. Option B is also incorrect as holding a university degree is not a requirement for trading in real estate. Option D is incorrect as the renewal of the program is not necessarily tied to the end of a calendar year. Option E is incorrect as the RECO Insurance Program primarily focuses on insurance coverage and not legal assistance for disputes. Option F is incorrect because the program provides coverage for a variety of risks up to certain limits, not specifically up to a deductible amount.