Chapter 23: Risk Management Flashcards
Of the following wrist management strategies, the one that aims to minimize both the severity and the likelihood of loss is…
Reduction
Insurance as a method of…
Risk outsourcing
How does disclosure manage risk?
Deflects and reduces risk by preventing others from claiming they were missed lead
Which of the following statements about a company procedures manual as a risk management device is true?
It can be a guide to compliance with the law
In what sense is the use of standardized forms a risk management procedure?
It reduces the risk of committing an unauthorized practice of law
Keeping thorough records of every transaction is not only a risk management technique, it is…
A legal requirement
Which of the following communication records must (as opposed to should) be kept?
Copies of required communications to principles
The standard E & O policy covers damages resulting from…
Negligence, error or omission incurring a professional services
Which of the following is a common risk relating to the agency relationship?
Failing to inform and disclose properly
Even after giving buyer and seller the required information about property condition disclosures, the license may still be subject to legal action for…
Failing to disclose known adverse facts
In performing a comparative market analysis, a licensee must be careful to…
Avoid creating a false impression that the license he is a certified appraiser
In fulfilling a listing agreement, one of the major risk areas is…
Exceeding the authority of the agreement
A simple way of reducing the risk of committing an error or omission in the contracting process is…
Use a checklist of all items, contingencies, dates and responsibilities that must be met
Regarding contracts and forms…
The principles may make changes as long as they sign or initial each change
The best way to minimize the risk of violating fair housing laws is to…
Obtain education in the content and intent of los
A license he risks violating antitrust law by…
Being present at a conversation where the setting of commission rates as discussed
How is an intentional misrepresentation penalized?
License discipline, fines, and possible incarceration
All of the following are areas of risk for unintentional misrepresentation except?
Stating that her client should seek legal counsel
To reduce risks inherent in reporting transaction progress to a client, the license he should…
Avoid statements of opinion and speculation in all reports
How does sharing the qualifying function with a lender protect a licensee?
It reduces the chance of presenting an offer from an on qualified buyer
