RIBO Exam
The Manager, under the RIBO Act, may cancel the license of a member for
non-payment of any prescribed fee after giving the member at least: - ANS-1 month
notice in writing of the default and intention to cancel the registration subject to the
continuing jurisdiction of the Corporation.
Upon successful completion of the examination, you may qualify for registration as an
insurance broker. If issued, the registration will be "restricted to acting under
supervision." Which one (1) of the following most accurately describes the conditions
under which you may act as an insurance broker under supervision? - ANS-You may
not act as a sole proprietor, nor be a "Principal Broker" as the term is used in the
regulation, nor may you control trust funds.
When news is received indicating that a member may be incapacitated, the information
is first referred to: - ANS-The Manager.
An insurance broker owns and operates a real estate agent's office and gives his real
estate agents a commission for insurance leads and referrals. Choose the best answer:
- ANS-The insurance broker has to have his RIBO license.
Which of the following actions is NOT prohibited under the RIB Act? - ANS-Giving a
policyholder a box of chocolates at Christmas.
When a broker has decided to change their place of employment who is supposed to
notify RIBO? - ANS-The broker within 30 days of the change.
The Peak Season Endorsement, which is used to increase stock coverage at specified
times of the year, is most effective for: - ANS-Retail risks where stock values fluctuate
seasonally.
Professional bailees owe a greater degree of care than do gratuitous bailees because: -
ANS-They hold other people's property for a fee.
The main role of the agent or broker in arranging an insurance contract: - ANS-Is acting
as the middleman between the parties involved.
, In the insurance business, reserves are: - ANS-The funds required by regulators to be
set aside for specific purposes.
Under the Commercial Building, Equipment and Stock - Named Perils Form, the items
used for maintenance and building services are covered under the: - ANS-Building
section.
An insurer's calculation of pure premium should consider: - ANS-The loss statistics.
Liability insurance provides coverage for claims arising from: - ANS-Negligent acts.
An insurer's retention on any one risk can be defined as being the: - ANS-Amount of
insurance it will keep for its own account.
Underwriting can best be described as the: - ANS-Selection of risks to insure.
According to the Statutory Conditions in a habitational insurance policy, after a loss, an
insured - ANS-Must provide the insurer with a proof of loss as soon as possible.
The statutory conditions are set out by: - ANS-The Provincial Act.
Which of the following is not a function of reinsurance? - ANS-Financing.
The insured's three-year-old living room couch was damaged in a fire. The claim was
settled by establishing the replacement cost and then deducting for physical
depreciation. This is an example of: - ANS-Actual Cash Value.
The components that reinforce the Principal of Indemnity are: - ANS-Subrogation,
contribution and salvage.
Which of the following is true with respect to misrepresentation? - ANS-It includes
non-disclosure by the insured.
Which of the following is false with respect to an Umbrella Liability policy? - ANS-They
are only sold to business to avoid gaps in their liability coverage.
The main purpose of the Federal Insurance Act is: - ANS-To regulate and monitor
federally licensed as well as foreign insurance companies, in order to ensure their
financial integrity.
The Manager, under the RIBO Act, may cancel the license of a member for
non-payment of any prescribed fee after giving the member at least: - ANS-1 month
notice in writing of the default and intention to cancel the registration subject to the
continuing jurisdiction of the Corporation.
Upon successful completion of the examination, you may qualify for registration as an
insurance broker. If issued, the registration will be "restricted to acting under
supervision." Which one (1) of the following most accurately describes the conditions
under which you may act as an insurance broker under supervision? - ANS-You may
not act as a sole proprietor, nor be a "Principal Broker" as the term is used in the
regulation, nor may you control trust funds.
When news is received indicating that a member may be incapacitated, the information
is first referred to: - ANS-The Manager.
An insurance broker owns and operates a real estate agent's office and gives his real
estate agents a commission for insurance leads and referrals. Choose the best answer:
- ANS-The insurance broker has to have his RIBO license.
Which of the following actions is NOT prohibited under the RIB Act? - ANS-Giving a
policyholder a box of chocolates at Christmas.
When a broker has decided to change their place of employment who is supposed to
notify RIBO? - ANS-The broker within 30 days of the change.
The Peak Season Endorsement, which is used to increase stock coverage at specified
times of the year, is most effective for: - ANS-Retail risks where stock values fluctuate
seasonally.
Professional bailees owe a greater degree of care than do gratuitous bailees because: -
ANS-They hold other people's property for a fee.
The main role of the agent or broker in arranging an insurance contract: - ANS-Is acting
as the middleman between the parties involved.
, In the insurance business, reserves are: - ANS-The funds required by regulators to be
set aside for specific purposes.
Under the Commercial Building, Equipment and Stock - Named Perils Form, the items
used for maintenance and building services are covered under the: - ANS-Building
section.
An insurer's calculation of pure premium should consider: - ANS-The loss statistics.
Liability insurance provides coverage for claims arising from: - ANS-Negligent acts.
An insurer's retention on any one risk can be defined as being the: - ANS-Amount of
insurance it will keep for its own account.
Underwriting can best be described as the: - ANS-Selection of risks to insure.
According to the Statutory Conditions in a habitational insurance policy, after a loss, an
insured - ANS-Must provide the insurer with a proof of loss as soon as possible.
The statutory conditions are set out by: - ANS-The Provincial Act.
Which of the following is not a function of reinsurance? - ANS-Financing.
The insured's three-year-old living room couch was damaged in a fire. The claim was
settled by establishing the replacement cost and then deducting for physical
depreciation. This is an example of: - ANS-Actual Cash Value.
The components that reinforce the Principal of Indemnity are: - ANS-Subrogation,
contribution and salvage.
Which of the following is true with respect to misrepresentation? - ANS-It includes
non-disclosure by the insured.
Which of the following is false with respect to an Umbrella Liability policy? - ANS-They
are only sold to business to avoid gaps in their liability coverage.
The main purpose of the Federal Insurance Act is: - ANS-To regulate and monitor
federally licensed as well as foreign insurance companies, in order to ensure their
financial integrity.
