RIBO INSURANCE CORE EXAM 2026 SET QUESTIONS AND
SOLUTIONS SCORED A+
✔✔Which of the following is true with respect to misrepresentation? - ✔✔It includes
non-disclosure by the insured.
✔✔Which of the following is false with respect to an Umbrella Liability policy? - ✔✔They
are only sold to business to avoid gaps in their liability coverage.
✔✔The main purpose of the Federal Insurance Act is: - ✔✔To regulate and monitor
federally licensed as well as foreign insurance companies, in order to ensure their
financial integrity.
✔✔Which of the following statements about the Facility Association is false? -
✔✔Underwriting and claims functions for facility business provided by all insurance
companies operating in Ontario.
✔✔The law makes a bailee: - ✔✔Responsible for damage to the owner's property,
unless the bailee can prove the damage was not caused by the bailee's negligence.
✔✔A contractor has given a Performance Bond, but is now unable to complete the
contract due to bankruptcy. The surety will do which of the following? - ✔✔Make
arrangements with the Obligee.
✔✔Which ways do insurance companies try to obtain a balanced "spread of risk"? -
✔✔Volume, diversity of type of risk, diversity of location.
✔✔A mortgagor - ✔✔Similar to a lessee.
✔✔The Insurance Act outlines the procedure to be followed when an Insurer issues a
policy that is different from the written application. Which of the following is true? -
✔✔The insurer is to notify the insured of the difference in the policy in writing, if the
insured does not object to the change within a stated period of time, the policy is
deemed to provide coverage as issued.
✔✔You insure a new home in the country. It is twelve miles from town and has no
available fire protection. You write one single policy for $1,000,000. However, since
none of the companies you write business for would agree to insure the risk for the
whole amount, you find coverage for it by using three companies. This is know in the
insurance industry as: - ✔✔Subscription policy.
✔✔An insurer insures a particular risk for $1,000,000, but only wishes to retain
$250,000 (25%) for its own account. It offers $750,000 (75%) to a reinsurance
company. This is an example of: - ✔✔Facultative reinsurance.
, ✔✔Which of the following is not one of the rules governing the process of Offer and
Acceptance? - ✔✔There must be a definite offer made, this includes an invitation to
make a deal.
✔✔In the insurance industry, which of the following best describes an "intermediary"? -
✔✔Licensed business persons representing the insurance company to a client or
potential clients.
✔✔Which of the following is not a purpose of the hotline? - ✔✔To provide contact
information for the nearest financial institution.
✔✔Which of the following is an example of salvage upholding the principal of
indemnity? - ✔✔An insured has a fire in his kitchen; it is completely destroyed. The
smoke from the fire damages the living room furniture. The insured is given the amount
to rebuild the kitchen and to replace the living room furniture. The insurer takes the old
furniture, pays for the cleaning and sells it for as much as it can on the market.
✔✔Which of the following is not covered under the liability section of the homeowner's
policy? - ✔✔The insured picks up a hot pot from the stove and is badly burnt by it
causing her to miss several days of work.
✔✔Liability policies pay: - ✔✔Legitimate claims up to the policy limits, as well as legal
costs and certain other expenses, in addition to the policy limit.
✔✔The general purpose of the liability section of the policy is to give the insured
protection for: - ✔✔Injuries caused to others when an insured is negligent and held
legally liable.
✔✔The main benefit of a mortgage clause is that: - ✔✔It protects the mortgagee in the
event of a loss, even if the insured breaches a policy condition.
✔✔Which of the following is true of the Newly Acquired Articles Clause under Personal
Articles Coverage? - ✔✔It automatically extends coverage to newly acquired articles
reported within 30 days.
✔✔The assignment of an insurance policy would be automatic in which of the following
cases? - ✔✔A goes bankrupt and B is appointed trustee in bankruptcy.
✔✔When comparing the Secondary and Seasonal Residence Fire and Extended
Coverage forms, most of the insureds perils are the same. What peril is included in the
Secondary form and is not in the Seasonal Residence form? - ✔✔The peril of vandalism
or malicious acts.
SOLUTIONS SCORED A+
✔✔Which of the following is true with respect to misrepresentation? - ✔✔It includes
non-disclosure by the insured.
✔✔Which of the following is false with respect to an Umbrella Liability policy? - ✔✔They
are only sold to business to avoid gaps in their liability coverage.
✔✔The main purpose of the Federal Insurance Act is: - ✔✔To regulate and monitor
federally licensed as well as foreign insurance companies, in order to ensure their
financial integrity.
✔✔Which of the following statements about the Facility Association is false? -
✔✔Underwriting and claims functions for facility business provided by all insurance
companies operating in Ontario.
✔✔The law makes a bailee: - ✔✔Responsible for damage to the owner's property,
unless the bailee can prove the damage was not caused by the bailee's negligence.
✔✔A contractor has given a Performance Bond, but is now unable to complete the
contract due to bankruptcy. The surety will do which of the following? - ✔✔Make
arrangements with the Obligee.
✔✔Which ways do insurance companies try to obtain a balanced "spread of risk"? -
✔✔Volume, diversity of type of risk, diversity of location.
✔✔A mortgagor - ✔✔Similar to a lessee.
✔✔The Insurance Act outlines the procedure to be followed when an Insurer issues a
policy that is different from the written application. Which of the following is true? -
✔✔The insurer is to notify the insured of the difference in the policy in writing, if the
insured does not object to the change within a stated period of time, the policy is
deemed to provide coverage as issued.
✔✔You insure a new home in the country. It is twelve miles from town and has no
available fire protection. You write one single policy for $1,000,000. However, since
none of the companies you write business for would agree to insure the risk for the
whole amount, you find coverage for it by using three companies. This is know in the
insurance industry as: - ✔✔Subscription policy.
✔✔An insurer insures a particular risk for $1,000,000, but only wishes to retain
$250,000 (25%) for its own account. It offers $750,000 (75%) to a reinsurance
company. This is an example of: - ✔✔Facultative reinsurance.
, ✔✔Which of the following is not one of the rules governing the process of Offer and
Acceptance? - ✔✔There must be a definite offer made, this includes an invitation to
make a deal.
✔✔In the insurance industry, which of the following best describes an "intermediary"? -
✔✔Licensed business persons representing the insurance company to a client or
potential clients.
✔✔Which of the following is not a purpose of the hotline? - ✔✔To provide contact
information for the nearest financial institution.
✔✔Which of the following is an example of salvage upholding the principal of
indemnity? - ✔✔An insured has a fire in his kitchen; it is completely destroyed. The
smoke from the fire damages the living room furniture. The insured is given the amount
to rebuild the kitchen and to replace the living room furniture. The insurer takes the old
furniture, pays for the cleaning and sells it for as much as it can on the market.
✔✔Which of the following is not covered under the liability section of the homeowner's
policy? - ✔✔The insured picks up a hot pot from the stove and is badly burnt by it
causing her to miss several days of work.
✔✔Liability policies pay: - ✔✔Legitimate claims up to the policy limits, as well as legal
costs and certain other expenses, in addition to the policy limit.
✔✔The general purpose of the liability section of the policy is to give the insured
protection for: - ✔✔Injuries caused to others when an insured is negligent and held
legally liable.
✔✔The main benefit of a mortgage clause is that: - ✔✔It protects the mortgagee in the
event of a loss, even if the insured breaches a policy condition.
✔✔Which of the following is true of the Newly Acquired Articles Clause under Personal
Articles Coverage? - ✔✔It automatically extends coverage to newly acquired articles
reported within 30 days.
✔✔The assignment of an insurance policy would be automatic in which of the following
cases? - ✔✔A goes bankrupt and B is appointed trustee in bankruptcy.
✔✔When comparing the Secondary and Seasonal Residence Fire and Extended
Coverage forms, most of the insureds perils are the same. What peril is included in the
Secondary form and is not in the Seasonal Residence form? - ✔✔The peril of vandalism
or malicious acts.
