Final answer:
The California Real Estate Recovery Account compensates victims for losses due to misrepresentation, fraud, and breach of contract by real estate licensees, but not for natural disasters.
Step-by-step explanation:
The California Real Estate Recovery Account compensates victims for financial losses due to certain wrongful acts committed by real estate licensees. It covers incidents involving misrepresentation, fraud, and breach of contract, but it is not designed to compensate for losses resulting from natural disasters. This account is a form of consumer protection that ensures individuals are not left without recourse in the event of certain types of wrongdoing by licensed real estate professionals.