RIBO INSURANCE MAIN EXAMINATION 2026 SET
QUESTIONS AND SOLUTIONS SCORED A+
✔✔When cancelling automobile insurance, the insurance company can only cancel for
reasons filed when the policy has been in effect for less than 60 days. When the policy
has been in effect for more than 60 days, the insurance company can only cancel for
one of the following reasons, except: - ✔✔When the insurer did not proceed with due
diligence with respect to the background information of the client and found out that
there were some outstanding parking tickets and a moving violation.
✔✔Personal Injury Liability under the Commercial General Liability Policy covers sums
that the insured becomes legally obligated to pay - ✔✔because of injury to a person's
character by such things as false arrest or malicious prosecution.
✔✔If information on the latest filed application to RIBO becomes obsolete, the member
must file a notice correcting the information - ✔✔Within 30 days of the change
✔✔Provincial regulations regarding an agent's handling of premium funds stipulates that
the business must have - ✔✔both an operating account and a trust account.
✔✔Misrepresentation discovered by an insurer may result in the policy being voided. To
do so successfully, the insurer must show - ✔✔the misrepresented fact was material to
the risk.
✔✔Misrepresentation discovered by an insurer may result in the policy being voided. To
do so successfully, the insurer must show - ✔✔That the misrepresented fact was
material to the risk.
✔✔Which statement describes the purpose of a fiduciary bond? - ✔✔A bond that
protects the financial interests of a person who relies on another to manage
property/affairs.
✔✔An independent agent or broker must maintain a trust account so that - ✔✔net
premiums are paid to insurers.
✔✔The regulations under the RIB Act require an insurance broker to provide evidence
that insurance has been placed on behalf of a client by - ✔✔The correct answer is: a
policy or certificate of coverage to the member of the public from whom he/she acts
within twenty-one (21) days after the placing of the insurance.
✔✔An insurance broker whose registration is restricted to acting under supervision may
perform which of the following? - ✔✔May solicit insurance to members of the public
anywhere in Ontario.
, ✔✔Policyholders pay premiums to an insurance company. Which of the following is the
primary responsibility of the insurance company? - ✔✔Manage the funds and pay
losses covered by it to those members who suffer them
✔✔Which statement describes the law of large numbers? - ✔✔Affects the reliance to be
placed on a given probability.
✔✔Which of the following statements best describes subrogation? - ✔✔It is the legal
process by which an insurer who has paid a loss, pursues any rights of recovery against
a responsible third party.
✔✔What is the legal process by which an insurer pursues any rights of recovery against
a responsible third party called? - ✔✔Subrogation.
✔✔Federal legislation/control is most interested in which of the following? - ✔✔The
financial stability of all licensed insurers.
✔✔An agent is responsible for performing which of the following tasks? - ✔✔Writing
classes of business acceptable to the insurer they represent
✔✔The Commercial Liability hazard, Completed Operations, refers to - ✔✔situations
where the insured performs some work which is defective and causes injury to persons
or property.
✔✔Which of the following occupations is considered registered under the RIB Act? -
✔✔Insurance brokers in Ontario who place business with several insurers
✔✔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.
✔✔A Commercial Crime Insurance Policy - ✔✔allows the selection of coverages from a
menu.
✔✔Rules or agreements concerning the binding of coverage by brokers are - ✔✔set out
and agreed upon between the insurance company and the broker office.
✔✔Unearned premiums are used to - ✔✔pay the insured this amount if the policies are
cancelled.
✔✔What is pure premium? - ✔✔Required amount to meet the losses that occur.
✔✔Contribution is best described as: - ✔✔Sharing of loss or liability between two or
more insurance companies.
QUESTIONS AND SOLUTIONS SCORED A+
✔✔When cancelling automobile insurance, the insurance company can only cancel for
reasons filed when the policy has been in effect for less than 60 days. When the policy
has been in effect for more than 60 days, the insurance company can only cancel for
one of the following reasons, except: - ✔✔When the insurer did not proceed with due
diligence with respect to the background information of the client and found out that
there were some outstanding parking tickets and a moving violation.
✔✔Personal Injury Liability under the Commercial General Liability Policy covers sums
that the insured becomes legally obligated to pay - ✔✔because of injury to a person's
character by such things as false arrest or malicious prosecution.
✔✔If information on the latest filed application to RIBO becomes obsolete, the member
must file a notice correcting the information - ✔✔Within 30 days of the change
✔✔Provincial regulations regarding an agent's handling of premium funds stipulates that
the business must have - ✔✔both an operating account and a trust account.
✔✔Misrepresentation discovered by an insurer may result in the policy being voided. To
do so successfully, the insurer must show - ✔✔the misrepresented fact was material to
the risk.
✔✔Misrepresentation discovered by an insurer may result in the policy being voided. To
do so successfully, the insurer must show - ✔✔That the misrepresented fact was
material to the risk.
✔✔Which statement describes the purpose of a fiduciary bond? - ✔✔A bond that
protects the financial interests of a person who relies on another to manage
property/affairs.
✔✔An independent agent or broker must maintain a trust account so that - ✔✔net
premiums are paid to insurers.
✔✔The regulations under the RIB Act require an insurance broker to provide evidence
that insurance has been placed on behalf of a client by - ✔✔The correct answer is: a
policy or certificate of coverage to the member of the public from whom he/she acts
within twenty-one (21) days after the placing of the insurance.
✔✔An insurance broker whose registration is restricted to acting under supervision may
perform which of the following? - ✔✔May solicit insurance to members of the public
anywhere in Ontario.
, ✔✔Policyholders pay premiums to an insurance company. Which of the following is the
primary responsibility of the insurance company? - ✔✔Manage the funds and pay
losses covered by it to those members who suffer them
✔✔Which statement describes the law of large numbers? - ✔✔Affects the reliance to be
placed on a given probability.
✔✔Which of the following statements best describes subrogation? - ✔✔It is the legal
process by which an insurer who has paid a loss, pursues any rights of recovery against
a responsible third party.
✔✔What is the legal process by which an insurer pursues any rights of recovery against
a responsible third party called? - ✔✔Subrogation.
✔✔Federal legislation/control is most interested in which of the following? - ✔✔The
financial stability of all licensed insurers.
✔✔An agent is responsible for performing which of the following tasks? - ✔✔Writing
classes of business acceptable to the insurer they represent
✔✔The Commercial Liability hazard, Completed Operations, refers to - ✔✔situations
where the insured performs some work which is defective and causes injury to persons
or property.
✔✔Which of the following occupations is considered registered under the RIB Act? -
✔✔Insurance brokers in Ontario who place business with several insurers
✔✔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.
✔✔A Commercial Crime Insurance Policy - ✔✔allows the selection of coverages from a
menu.
✔✔Rules or agreements concerning the binding of coverage by brokers are - ✔✔set out
and agreed upon between the insurance company and the broker office.
✔✔Unearned premiums are used to - ✔✔pay the insured this amount if the policies are
cancelled.
✔✔What is pure premium? - ✔✔Required amount to meet the losses that occur.
✔✔Contribution is best described as: - ✔✔Sharing of loss or liability between two or
more insurance companies.
