Who administers the E&O program and acts as trustee for the deductible portions?

• A. REIA
• B. A local bank
• C. The provincial government
• D. A private insurer

Answer: (A)

The main idea here is who is responsible for running the Errors and Omissions (E&O) program and holding the deductible funds. In this context, the Real Estate Institute/Association (REIA) is the entity that administers the E&O program, handling enrollment, policy terms, claims processing, and day-to-day management. It also acts as trustee for the deductible portions, meaning it keeps those funds in trust on behalf of the members to cover deductibles that arise when claims are made. This setup ensures that there is a dedicated, member-driven governance and funding arrangement for the E&O program rather than relying on banks, government, or a private insurer to perform this trustee role.

The other options aren’t a fit because a local bank doesn’t manage professional liability programs, the provincial government doesn’t typically administer a private E&O plan, and while a private insurer underwrites coverage, it doesn’t usually serve as the trustee for members’ deductible funds.