RIBO EXAM
Risk - Answer-Chance of Loss- where the object of insurance maybe exposed
Peril - Answer-Cause of loss (wind, fire, water)
Indemnification - Answer-When insurer provides exact amount of loss, no more no
less - provided in money or another item of similar value
Covered losses - Answer-Accidental and future (not on purpose or in the past)
Alternatives to payment - Answer-Repair or replacement
three types of insurers - Answer-Stock-Operates on private funds from the stock
market
mutuals- owned by its policyholders and aims to give the lowest cost
government- public
Broker/agent- who do they work on behalf of? - Answer-Broker- their client
agent-their company
Floaters cover property having a ____ - Answer-High degree of mobility
Within travel health insurance, pre-existing conditions are covered provided clients
receive no treatment, change in medication or medical consultation in the ____ days
prior to departure - Answer-90 days
Brokers should hold unearned commissions ___ to refund their clients in the event
the policy is cancelled prior to its expiry date. - Answer-in trust
Can you insure more than one vehicle on the same policy - Answer-no
The RIBO Qualifications and Registration Committee is responsible for establishing
and maintaining standards of competence for insurance brokers, including _____
and providing information and assistance to brokers - Answer-exams
____ insures the legal liability of medical professionals arising out of rendering or
failure to render professional services - Answer-malpractice insurance
____is essential for contractors and others whose work may result in injury or
damage when such work is put to its intended use - Answer-completed operations
coverage
The most practical and common means of dealing with risk in Canada is - Answer-
the transfer of risk to an insurance company
____ acknowledges changes to the terms in the insurance contract - Answer-both
endorsements and riders
,_____ are rules and regulations governing the rights and responsibilities of all parties
to a contract of insurance - Answer-statutory conditions
In Ontario, the automobile insurance application requires that the insured provide an
insurance history for the last _____ years, so that the insurer can assess the risk and
determine the premium - Answer-6
When one insurer transfers or cedes a portion of its risk to another insurer, this is
called __ - Answer-reinsurance
A surety guarantee made by a contractor when a contractor bids on a tender for
construction of a large project is called a __, and it guarantees that the contactor will
enter into a contact to perform the work at the tendered price and provide whatever
security is specified to ensure performance of the contract - Answer-bid bond
In Quebec, the government maintains a monopoly on __for automobile accidents
occurring in that province; other coverages may be purchased from private insurers
except - Answer-personal injury costs
When an insurer intentionally issues a policy that differs from the application, ______
- Answer-insurer must notify the insured in writing the ways in which it differs from
the application
When there is a property insurance claim, in order to check the limit of the insured's
insurance, the insurance adjuster checks the ____ - Answer-insureds policy
The license term (# of yrs) for an insurance broker in Canada is___ - Answer-varies
province by province
covered or not? ground water or rising of the water table, or surface water - Answer-
no
The ongoing process whereby an automobile decreases in value as it ages is called
__ - Answer-depreciation
An insurance brokers license can be terminated for __ - Answer-unethical conduct
The ______ policy insures blanket contractual, contingent employer's and owner's
and contractor's protective liability for retail stores, offices and other businesses -
Answer-commercial general liability
The _____ department of an insurance company includes human resources, legal,
management of information systems. - Answer-administration
In Ontario, the standard behaviour of insurance brokers is described in __ - Answer-
RIB Act
insurance will only pay if - Answer-in the event of the happening of a certain risk or
peril
, RIBO has a committee that oversees complaints and investigations called __ -
Answer-code of conduct committee
an umbrella policy - Answer-Provides excess insurance over another policy
T/F: The owner of a known wild or ferocious animal, such as a ferret, is not
responsible for the animals behaviour, such as biting, chewing or digging - Answer-
False
Which of the following is NOT covered on a personal line liability policy? - Answer-
Special Damages
_____ guarantee payments of duties or taxes that businesses collect at the time of
sale and then submit to the Canadian government. Examples are customs
warehouses and distillers - Answer-customs and excise bonds
The basis of a settlement under a valued policy will be the value agreed to by the
insured and insurer, and the insurer will normally require that the insured's valuation
be confirmed by _____ - Answer-a qualified appraiser
Which of the following items is NOT included under the dwelling building coverage of
a Comprehensive Homeowners Policy - Answer-
Which of the following items is NOT included under the dwelling building coverage of
a Comprehensive Homeowners Policy (pool, greenhouse, permanent outdoor fixture,
plants) - Answer-greenhouse
When an accident occurs, legal costs of the insured are completely covered within
the ____ - Answer-liability insurance policy limit
The commercial property 3-D policy includes an agreement that covers __ - Answer-
employee dishonest, deposit forgery, money orders and counterfeit paper currency
The three (3) criteria used by an Adjuster in determining the amount of a loss; 1. the
interest of the insured in the property, 2. amount of insurance specified in the
declarations page in respect to that property, and 3. __ - Answer-actual cash value
of the property at the time of loss
Three elements that are unique to insurance contracts are _____ - Answer-insurable
interest, utmost good faith, indemnity
Claims adjustment and settlement is handled by the brokerage, the insurance
company and/or _____ - Answer-independent adjustment firms
Personal liability coverages are extended to a variety of motorized vehicles,
watercraft and their uses; which of the following is NOT covered? - Answer-a
motorboat or watercraft that is used in a race
Risk - Answer-Chance of Loss- where the object of insurance maybe exposed
Peril - Answer-Cause of loss (wind, fire, water)
Indemnification - Answer-When insurer provides exact amount of loss, no more no
less - provided in money or another item of similar value
Covered losses - Answer-Accidental and future (not on purpose or in the past)
Alternatives to payment - Answer-Repair or replacement
three types of insurers - Answer-Stock-Operates on private funds from the stock
market
mutuals- owned by its policyholders and aims to give the lowest cost
government- public
Broker/agent- who do they work on behalf of? - Answer-Broker- their client
agent-their company
Floaters cover property having a ____ - Answer-High degree of mobility
Within travel health insurance, pre-existing conditions are covered provided clients
receive no treatment, change in medication or medical consultation in the ____ days
prior to departure - Answer-90 days
Brokers should hold unearned commissions ___ to refund their clients in the event
the policy is cancelled prior to its expiry date. - Answer-in trust
Can you insure more than one vehicle on the same policy - Answer-no
The RIBO Qualifications and Registration Committee is responsible for establishing
and maintaining standards of competence for insurance brokers, including _____
and providing information and assistance to brokers - Answer-exams
____ insures the legal liability of medical professionals arising out of rendering or
failure to render professional services - Answer-malpractice insurance
____is essential for contractors and others whose work may result in injury or
damage when such work is put to its intended use - Answer-completed operations
coverage
The most practical and common means of dealing with risk in Canada is - Answer-
the transfer of risk to an insurance company
____ acknowledges changes to the terms in the insurance contract - Answer-both
endorsements and riders
,_____ are rules and regulations governing the rights and responsibilities of all parties
to a contract of insurance - Answer-statutory conditions
In Ontario, the automobile insurance application requires that the insured provide an
insurance history for the last _____ years, so that the insurer can assess the risk and
determine the premium - Answer-6
When one insurer transfers or cedes a portion of its risk to another insurer, this is
called __ - Answer-reinsurance
A surety guarantee made by a contractor when a contractor bids on a tender for
construction of a large project is called a __, and it guarantees that the contactor will
enter into a contact to perform the work at the tendered price and provide whatever
security is specified to ensure performance of the contract - Answer-bid bond
In Quebec, the government maintains a monopoly on __for automobile accidents
occurring in that province; other coverages may be purchased from private insurers
except - Answer-personal injury costs
When an insurer intentionally issues a policy that differs from the application, ______
- Answer-insurer must notify the insured in writing the ways in which it differs from
the application
When there is a property insurance claim, in order to check the limit of the insured's
insurance, the insurance adjuster checks the ____ - Answer-insureds policy
The license term (# of yrs) for an insurance broker in Canada is___ - Answer-varies
province by province
covered or not? ground water or rising of the water table, or surface water - Answer-
no
The ongoing process whereby an automobile decreases in value as it ages is called
__ - Answer-depreciation
An insurance brokers license can be terminated for __ - Answer-unethical conduct
The ______ policy insures blanket contractual, contingent employer's and owner's
and contractor's protective liability for retail stores, offices and other businesses -
Answer-commercial general liability
The _____ department of an insurance company includes human resources, legal,
management of information systems. - Answer-administration
In Ontario, the standard behaviour of insurance brokers is described in __ - Answer-
RIB Act
insurance will only pay if - Answer-in the event of the happening of a certain risk or
peril
, RIBO has a committee that oversees complaints and investigations called __ -
Answer-code of conduct committee
an umbrella policy - Answer-Provides excess insurance over another policy
T/F: The owner of a known wild or ferocious animal, such as a ferret, is not
responsible for the animals behaviour, such as biting, chewing or digging - Answer-
False
Which of the following is NOT covered on a personal line liability policy? - Answer-
Special Damages
_____ guarantee payments of duties or taxes that businesses collect at the time of
sale and then submit to the Canadian government. Examples are customs
warehouses and distillers - Answer-customs and excise bonds
The basis of a settlement under a valued policy will be the value agreed to by the
insured and insurer, and the insurer will normally require that the insured's valuation
be confirmed by _____ - Answer-a qualified appraiser
Which of the following items is NOT included under the dwelling building coverage of
a Comprehensive Homeowners Policy - Answer-
Which of the following items is NOT included under the dwelling building coverage of
a Comprehensive Homeowners Policy (pool, greenhouse, permanent outdoor fixture,
plants) - Answer-greenhouse
When an accident occurs, legal costs of the insured are completely covered within
the ____ - Answer-liability insurance policy limit
The commercial property 3-D policy includes an agreement that covers __ - Answer-
employee dishonest, deposit forgery, money orders and counterfeit paper currency
The three (3) criteria used by an Adjuster in determining the amount of a loss; 1. the
interest of the insured in the property, 2. amount of insurance specified in the
declarations page in respect to that property, and 3. __ - Answer-actual cash value
of the property at the time of loss
Three elements that are unique to insurance contracts are _____ - Answer-insurable
interest, utmost good faith, indemnity
Claims adjustment and settlement is handled by the brokerage, the insurance
company and/or _____ - Answer-independent adjustment firms
Personal liability coverages are extended to a variety of motorized vehicles,
watercraft and their uses; which of the following is NOT covered? - Answer-a
motorboat or watercraft that is used in a race
