RECA Fundamentals Exam Questions with Correct Answers

RECA Fundamentals Exam Questions with Correct Answers Personal Ethics - Answer-Morals - held by individual Ethics - Standard of Conduct (values/beliefs that guide actions) Professional Standards - Rules and Regulations Ethical Decision Making - Answer-1. Recognize 2. Analyze 3. Test 3A. Seek assistance if needed 4. Implement Golden rule - Answer-Do unto others as you would have them do unto you Real Estate Insurance Exchange (REIX) - Answer-- provides financial protection - compensates consumers up to $35,000 - mandatory errors & omissions insurance + negligence - excludes injuries or death, transfers of title, commission/fees - $3,500 is the first deductible - $7,000 if second claim. - RECA collects premiums with licensing fees Tort Law - Answer-Compensation for civil wrongs that result in harm - Negligent Tort - carelessness, failure to exercise reasonable care - Intentional Tort - assault, fraud, theft, defamation - strict liability Tort - the act itself, producting defective products, using hazardous materials Benefits of REIX - Answer-- enhances the image of the profession - has the potential to save on insurance costs - The profession is active in managing the program and its risks Duty based approach to ethical decision making - Answer-- individuals intentions or motives - belief in universal moral system of ethical reasoning - individuals should do the right thing because its the right thing to do Errors and Omissions Insurance - Answer-real estate equivalent of malpractice coverage Comprehensive General Liability Insurance - Answer-- broad coverage for claims against injury/damage - civil liability (a fall)