RIBO - General
Which of the following provinces offer only government compulsory auto insurance? -
ANS-British Columbia, Manitoba and Saskatchewan
The definition of ordinary negligence? - ANS-Is the failure to do what a reasonable
person would do in a given situation.
A broker/agent is responsible for what? - ANS-Writing only those classes of business
acceptable to his/her insurer.
An insurance contract contains all of the elements of any other legal contract. One
element that must also be contained in a valid contract of insurance is what? -
ANS-Utmost good faith. C-82 Study 2 ("In it's underwear")
The definition of a physical hazard would best be described as what? - ANS-Slippery
floors, C-81 Study 1
Insurance is what? - ANS-The undertaking by one person to indemnify another person
against loss or Liability for loss in respect of a certain risk or peril
As far as reinsurance is concerned, the amount one party reinsures with another is
called what? - ANS-Its cession
True or False: The absence of true mutual understanding with respect to a contract will
not effect the legality of the contract once it has been signed - ANS-False
Which of the following auto coverage responds regardless of fault? - ANS-Accident
Benefits, A B Pays Regardless of Fault
What is the name of the legal process used by insurers when collecting from a
responsible 3rd party? - ANS-Subrogation
True or False: Statutory Conditions can be changed at the request of the insured to
decrease minimum legislated coverage available. - ANS-False: Set out by Insurance act
Which of the following statements about co-insurance is true? - ANS-They are designed
to encourage the insured to carry adequate amounts of Insurance. They force the
,insured to bear a portion of every loss if under insurance exists. It is mostly applied to
commercial policies.
Which of the following helps insurers determine the probability of insured losses in the
future? - ANS-Past loss histories (this is Step 2 in order to determine rates and
premiums)
When an insurer intentionally issues a policy that differs from the application. - ANS-It
must notify the insured in writing the ways in which it differs from the application. 3
things must occur notify, writing, silence is acceptance
What would not affect the rate on a property insurance policy? - ANS-Length of time
applicant has been in business. (Not on the application)
Under RIBO regulation 991, section 15, a broker would not be considered to be guilty of
misconduct if: - ANS-The broker compares line for line, a potential customer's present
insurance coverage with that of a competing company, which he or she represents, in
order to point out the benefits of his proposed policy coverage.
Of the following, the person who most clearly has an insurable interest in an automobile
is - ANS-The person who actually owns the automobile
Extension insurance is available in provinces having government automobile insurance
plans. - ANS-It may be used to increase limits of insurance and/or reduce deductibles.
Which of the following types of insurance does not belong under the heading of General
Insurance? - ANS-Life Insurance
What do Applications for insurance policies do? - ANS-Provide details for assessing and
rating a risk.
True or False: Third parties are not a party to the policy. - ANS-True
True or False: Every member must maintain errors and omissions insurance of at least
$100,000 for any one occurrence. - ANS-False: Errors and Omissions at 1 Million and
Fidelity at 100 K
A member who places insurance with an insurer unlicensed to trade insurance in
Ontario must? - ANS-Obtain the written consent of the member of the public whom the
, broker services to the effect that they are aware their coverage will be carried by an
unlicensed insurer in the province.
Which of the following is NOT a stipulation of the broker's Code of Conduct as found in
RIBO regulation 991, section 14? - ANS-All members shall assist in preventing the
authorized practice of their occupation.
Under the RIB act definition, an insurance broker is all of the following, except: - ANS-A
person who arranges any payment plan for the premium due under a contract of
insurance. E R tells us payment plans acceptable we simply hold in trust
Where the RIBO Discipline Committee finds a member guilty of misconduct, it may do
all of the following except: - ANS-Set fines of up to $10,000 and/or imprison the member
for up to 12 months.
Under a fire policy the insurer will pay what? - ANS-The least of the interest of the
insured in the property. The property's actual cash value at the time of the loss. The
amount of insurance purchased which is applicable to the item lost or damaged.
The insured decides to renovate their home. As a result they have to obtain temporary
residence until the work is completed. The Homeowner policy will pay what? -
ANS-None of the expenses. (not insured peril)
A property is insured for $100,000 and valued at $150,000. There is a 90% coinsurance
clause. A loss of $90,000 occurs. The insurer will pay: - ANS-$66,667 (100,000/135,000
* 90,000= $66,667)
Under a Fire and Extended Coverage policy which item is not included? -
ANS-Earthquake.
When a standard Mortgage Clause is attached to a policy: - ANS-The insurer could be
called upon to pay a loss to the Mortgagee even though the insured has violated a
condition of the policy.
The insured's dining room furniture was badly damaged when a fire broke out. The
claim was settled by paying an amount equal to the replacement cost minus physical
depreciation. This illustrates the application of: - ANS-Actual cash value. (Replacement
cost - depreciation)
Which of the following provinces offer only government compulsory auto insurance? -
ANS-British Columbia, Manitoba and Saskatchewan
The definition of ordinary negligence? - ANS-Is the failure to do what a reasonable
person would do in a given situation.
A broker/agent is responsible for what? - ANS-Writing only those classes of business
acceptable to his/her insurer.
An insurance contract contains all of the elements of any other legal contract. One
element that must also be contained in a valid contract of insurance is what? -
ANS-Utmost good faith. C-82 Study 2 ("In it's underwear")
The definition of a physical hazard would best be described as what? - ANS-Slippery
floors, C-81 Study 1
Insurance is what? - ANS-The undertaking by one person to indemnify another person
against loss or Liability for loss in respect of a certain risk or peril
As far as reinsurance is concerned, the amount one party reinsures with another is
called what? - ANS-Its cession
True or False: The absence of true mutual understanding with respect to a contract will
not effect the legality of the contract once it has been signed - ANS-False
Which of the following auto coverage responds regardless of fault? - ANS-Accident
Benefits, A B Pays Regardless of Fault
What is the name of the legal process used by insurers when collecting from a
responsible 3rd party? - ANS-Subrogation
True or False: Statutory Conditions can be changed at the request of the insured to
decrease minimum legislated coverage available. - ANS-False: Set out by Insurance act
Which of the following statements about co-insurance is true? - ANS-They are designed
to encourage the insured to carry adequate amounts of Insurance. They force the
,insured to bear a portion of every loss if under insurance exists. It is mostly applied to
commercial policies.
Which of the following helps insurers determine the probability of insured losses in the
future? - ANS-Past loss histories (this is Step 2 in order to determine rates and
premiums)
When an insurer intentionally issues a policy that differs from the application. - ANS-It
must notify the insured in writing the ways in which it differs from the application. 3
things must occur notify, writing, silence is acceptance
What would not affect the rate on a property insurance policy? - ANS-Length of time
applicant has been in business. (Not on the application)
Under RIBO regulation 991, section 15, a broker would not be considered to be guilty of
misconduct if: - ANS-The broker compares line for line, a potential customer's present
insurance coverage with that of a competing company, which he or she represents, in
order to point out the benefits of his proposed policy coverage.
Of the following, the person who most clearly has an insurable interest in an automobile
is - ANS-The person who actually owns the automobile
Extension insurance is available in provinces having government automobile insurance
plans. - ANS-It may be used to increase limits of insurance and/or reduce deductibles.
Which of the following types of insurance does not belong under the heading of General
Insurance? - ANS-Life Insurance
What do Applications for insurance policies do? - ANS-Provide details for assessing and
rating a risk.
True or False: Third parties are not a party to the policy. - ANS-True
True or False: Every member must maintain errors and omissions insurance of at least
$100,000 for any one occurrence. - ANS-False: Errors and Omissions at 1 Million and
Fidelity at 100 K
A member who places insurance with an insurer unlicensed to trade insurance in
Ontario must? - ANS-Obtain the written consent of the member of the public whom the
, broker services to the effect that they are aware their coverage will be carried by an
unlicensed insurer in the province.
Which of the following is NOT a stipulation of the broker's Code of Conduct as found in
RIBO regulation 991, section 14? - ANS-All members shall assist in preventing the
authorized practice of their occupation.
Under the RIB act definition, an insurance broker is all of the following, except: - ANS-A
person who arranges any payment plan for the premium due under a contract of
insurance. E R tells us payment plans acceptable we simply hold in trust
Where the RIBO Discipline Committee finds a member guilty of misconduct, it may do
all of the following except: - ANS-Set fines of up to $10,000 and/or imprison the member
for up to 12 months.
Under a fire policy the insurer will pay what? - ANS-The least of the interest of the
insured in the property. The property's actual cash value at the time of the loss. The
amount of insurance purchased which is applicable to the item lost or damaged.
The insured decides to renovate their home. As a result they have to obtain temporary
residence until the work is completed. The Homeowner policy will pay what? -
ANS-None of the expenses. (not insured peril)
A property is insured for $100,000 and valued at $150,000. There is a 90% coinsurance
clause. A loss of $90,000 occurs. The insurer will pay: - ANS-$66,667 (100,000/135,000
* 90,000= $66,667)
Under a Fire and Extended Coverage policy which item is not included? -
ANS-Earthquake.
When a standard Mortgage Clause is attached to a policy: - ANS-The insurer could be
called upon to pay a loss to the Mortgagee even though the insured has violated a
condition of the policy.
The insured's dining room furniture was badly damaged when a fire broke out. The
claim was settled by paying an amount equal to the replacement cost minus physical
depreciation. This illustrates the application of: - ANS-Actual cash value. (Replacement
cost - depreciation)
