RIBO INSURANCE STUDY GUIDE 2026 EXAM QUESTIONS
AND SOLUTIONS SCORED A+
✔✔Individual losses for the OAP 1 are subject to a deductible. However, no deductible
applies to losses resulting from which of the following perils? - ✔✔Fire or lightning
✔✔A Trust Position Report must be filed with RIBO at which of the following time
periods? - ✔✔Twice a year
✔✔A cigarette sets an automobile seat on fire and causes $450 damage. The policy
shows a $300 deductible under Specified Perils. What would the insurer pay? - ✔✔$450
✔✔Three of the following are Travel Health Policy limitations. Which one is not? - ✔✔Air
travel as a passenger in a commercial aircraft licensed to carry passengers for hire.
✔✔Your client has a $120,000 Homeowners Comprehensive Policy. Due to fire that
causes substantial damage to the home, the family must rent another house for three
months at a rent of $1,000 per month. If your client's mortgage payment is $900 per
month, which one of the following amounts will their Homeowners Comprehensive
Policy pay towards the cost of renting the temporary house? (ignore deductibles) -
✔✔$3000
✔✔In addition to the basic Third-Party Liability coverage, the insurer agrees to which of
the following? - ✔✔Reimburse the insured for out-of-pocket medical costs if the insured
is at fault.
✔✔The Facility Association (FA) can be described as which of the following? - ✔✔An
insurance pool subscribed to by all automobile insurance carriers that share the writing
of risks not ordinarily written on the regular market.
✔✔A fiduciary is someone - ✔✔To whom the administration of something is entrusted
for the benefit of another.
✔✔The liability section of a Homeowners Comprehensive Policy does not provide
coverage for which of the following properties? - ✔✔Newly acquired farm premises
✔✔In claiming for damage to a building under a Homeowners Comprehensive Policy,
the insured has two options: A. Replacement cost settlement, or B. Actual cash value
settlement. If the insured opts for A, which one of the following requirements does not
apply? - ✔✔The amount of the loss will be based on the relationship between the
amount of the insurance and 80% of the actual cash value of the building
, ✔✔Additional exposures that are usually endorsed onto a Farm Policy include which
one of the following? - ✔✔Farm machinery, equipment and livestock
✔✔Which of the following is not covered under Additional Agreements of Insurer?
(Third-Party Liability) - ✔✔Defence costs for any criminal prosecution arising out of the
accident.
✔✔Which of the following statements is not true with regard to the responsibilities the
insureds and insurers have relating to losses? (Statutory Conditions) - ✔✔The insurer
does not have to notify the insured in writing of intent to repair
✔✔Which of the following is not the subject of a Statutory Condition in a property
policy? - ✔✔Coinsurance penalties
✔✔Personal liability is designed to protect individuals and their families against the
liability imposed on them by law arising out of their daily activities, including which of the
following? - ✔✔Liability assumed under a written agreement relating to the dwelling
✔✔An agent is responsible for performing which of the following tasks? - ✔✔Writing
classes of business acceptable to the insurer they represent
✔✔What type of damages may be awarded when a defendant is grossly negligent or
shows a complete disregard for persons or property? - ✔✔Exemplary damages
✔✔Damages awarded for pain and suffering or disfigurement are called - ✔✔General
damages
✔✔A Subscription Policy differs from other policies in that - ✔✔More than one insurer
participates in a policy prepared by the lead company.
✔✔You insure your new home in the country. It is 12 miles from town and has no
available fire protection. You write one policy for $1,000,000 all-risks and since none of
your companies would write the whole amount, you insure it using three companies.
What is this known as? - ✔✔Subscription
✔✔Which of the following is an example of an insurable loss under the Basic fire
insurance policy? - ✔✔Smoke damage to the insured's newly painted house, caused by
a fire next door.
✔✔Under Section 7 - Physical Damage to Own Automobile Coverage, the insurer
agrees to indemnify which of the following? - ✔✔The named insured
AND SOLUTIONS SCORED A+
✔✔Individual losses for the OAP 1 are subject to a deductible. However, no deductible
applies to losses resulting from which of the following perils? - ✔✔Fire or lightning
✔✔A Trust Position Report must be filed with RIBO at which of the following time
periods? - ✔✔Twice a year
✔✔A cigarette sets an automobile seat on fire and causes $450 damage. The policy
shows a $300 deductible under Specified Perils. What would the insurer pay? - ✔✔$450
✔✔Three of the following are Travel Health Policy limitations. Which one is not? - ✔✔Air
travel as a passenger in a commercial aircraft licensed to carry passengers for hire.
✔✔Your client has a $120,000 Homeowners Comprehensive Policy. Due to fire that
causes substantial damage to the home, the family must rent another house for three
months at a rent of $1,000 per month. If your client's mortgage payment is $900 per
month, which one of the following amounts will their Homeowners Comprehensive
Policy pay towards the cost of renting the temporary house? (ignore deductibles) -
✔✔$3000
✔✔In addition to the basic Third-Party Liability coverage, the insurer agrees to which of
the following? - ✔✔Reimburse the insured for out-of-pocket medical costs if the insured
is at fault.
✔✔The Facility Association (FA) can be described as which of the following? - ✔✔An
insurance pool subscribed to by all automobile insurance carriers that share the writing
of risks not ordinarily written on the regular market.
✔✔A fiduciary is someone - ✔✔To whom the administration of something is entrusted
for the benefit of another.
✔✔The liability section of a Homeowners Comprehensive Policy does not provide
coverage for which of the following properties? - ✔✔Newly acquired farm premises
✔✔In claiming for damage to a building under a Homeowners Comprehensive Policy,
the insured has two options: A. Replacement cost settlement, or B. Actual cash value
settlement. If the insured opts for A, which one of the following requirements does not
apply? - ✔✔The amount of the loss will be based on the relationship between the
amount of the insurance and 80% of the actual cash value of the building
, ✔✔Additional exposures that are usually endorsed onto a Farm Policy include which
one of the following? - ✔✔Farm machinery, equipment and livestock
✔✔Which of the following is not covered under Additional Agreements of Insurer?
(Third-Party Liability) - ✔✔Defence costs for any criminal prosecution arising out of the
accident.
✔✔Which of the following statements is not true with regard to the responsibilities the
insureds and insurers have relating to losses? (Statutory Conditions) - ✔✔The insurer
does not have to notify the insured in writing of intent to repair
✔✔Which of the following is not the subject of a Statutory Condition in a property
policy? - ✔✔Coinsurance penalties
✔✔Personal liability is designed to protect individuals and their families against the
liability imposed on them by law arising out of their daily activities, including which of the
following? - ✔✔Liability assumed under a written agreement relating to the dwelling
✔✔An agent is responsible for performing which of the following tasks? - ✔✔Writing
classes of business acceptable to the insurer they represent
✔✔What type of damages may be awarded when a defendant is grossly negligent or
shows a complete disregard for persons or property? - ✔✔Exemplary damages
✔✔Damages awarded for pain and suffering or disfigurement are called - ✔✔General
damages
✔✔A Subscription Policy differs from other policies in that - ✔✔More than one insurer
participates in a policy prepared by the lead company.
✔✔You insure your new home in the country. It is 12 miles from town and has no
available fire protection. You write one policy for $1,000,000 all-risks and since none of
your companies would write the whole amount, you insure it using three companies.
What is this known as? - ✔✔Subscription
✔✔Which of the following is an example of an insurable loss under the Basic fire
insurance policy? - ✔✔Smoke damage to the insured's newly painted house, caused by
a fire next door.
✔✔Under Section 7 - Physical Damage to Own Automobile Coverage, the insurer
agrees to indemnify which of the following? - ✔✔The named insured
