RIBO Insurance Exam 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update
What makes pure risk insurable while speculative not? - 🧠 ANSWER
✔✔Pure risk insurance is a situation involving a chance of a loss without a
chance of gain. Insurance will accept situations where there is no potential
for gain.
Pure Risk - 🧠 ANSWER ✔✔A situation involving a chance of loss without a
chance of gain. Example: property damage
Speculative Risk - 🧠 ANSWER ✔✔A situation where the possibility of either
financial loss or gain exists. This is not accepted by insurances. Example:
gambling
,Insurance - 🧠 ANSWER ✔✔A contract in which one party, the insurer, for
monetary consideration agrees to reimburse another, the insured, for loss
or liability for a loss by specified hazards or perils
Risk - 🧠 ANSWER ✔✔the chance of loss (the possible loss or destruction of
property or incurring of a liability).
Direct Loss - 🧠 ANSWER ✔✔losses that are involving damage to or
destruction of the property insured. Example: replacing a stolen stereo
Indirect Loss - 🧠 ANSWER ✔✔losses that occur because of direct losses.
Example: loss of income from a tenant due to a building burning down.
Peril - 🧠 ANSWER ✔✔the event that caused a loss covered by the policy.
Example: fire. (WHISLER acronym)
What is WHISLER stand for? - 🧠 ANSWER ✔✔Wind, Hail, Impact, Smoke,
Lightning, Explosion and Riot
Hazard - 🧠 ANSWER ✔✔condition that may cause a peril to occur or make
the loss more severe - divided into physical and moral hazards. Physical
hazards' example is slippery floors. Moral hazard example would be mental
attitudes about risk.
,What are the three classes of insurance? - 🧠 ANSWER ✔✔The classes of
insurance include personal and commercial lines as well as specialty risks.
Example: personal (jewelry), commercial (owned businesses) and specialty
(airports or high risk industry)
What is a liability insurance peril? - 🧠 ANSWER ✔✔It includes negligence -
when you are doing or not doing something that is expected by a
reasonable person.
Proximate Cause - 🧠 ANSWER ✔✔is the immediate and effective cause of
the loss in a chain of events leading to the loss, but is not necessarily the
last event before the occurrence
Immediate Cause - 🧠 ANSWER ✔✔last link in the chain of events
Remote Cause - 🧠 ANSWER ✔✔is separate from the proximate cause in
the chain of events leading to a loss (what could've been)
Indemnify - 🧠 ANSWER ✔✔compensate for loss, damage, or injury;
reimburse; repay. It is to bring the insured person back to the point they
previously were (no gain, no loss).
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, Pooling Funds for Loss - 🧠 ANSWER ✔✔A group of people will pay out for
insurance to insure the few that are injured. Losses of a few are shared by
the many.
What is the role of an insurance broker? - 🧠 ANSWER ✔✔Bring in two
parties together in a contractual relationship
What is spread of risk and how can it be done? - 🧠 ANSWER ✔✔Spreading
of risk is a way to achieve balance between premiums collected versus
losses paid. It is done through volume (large number of risks), diversity of
risk (different risk classifications) and diversity of location (not all risks in
one location).
What does the insurance money get used for? - 🧠 ANSWER ✔✔Insurance
money is a source of capital. it is invested in large amounts of capital to low
risk investments.
What is insurable interest? - 🧠 ANSWER ✔✔You must own the item that
you are insuring. You must benefit from its existence and suffer from its
loss. You cannot insure your neighbour's house.
Questions with 100% Correct Answers |
Latest Update
What makes pure risk insurable while speculative not? - 🧠 ANSWER
✔✔Pure risk insurance is a situation involving a chance of a loss without a
chance of gain. Insurance will accept situations where there is no potential
for gain.
Pure Risk - 🧠 ANSWER ✔✔A situation involving a chance of loss without a
chance of gain. Example: property damage
Speculative Risk - 🧠 ANSWER ✔✔A situation where the possibility of either
financial loss or gain exists. This is not accepted by insurances. Example:
gambling
,Insurance - 🧠 ANSWER ✔✔A contract in which one party, the insurer, for
monetary consideration agrees to reimburse another, the insured, for loss
or liability for a loss by specified hazards or perils
Risk - 🧠 ANSWER ✔✔the chance of loss (the possible loss or destruction of
property or incurring of a liability).
Direct Loss - 🧠 ANSWER ✔✔losses that are involving damage to or
destruction of the property insured. Example: replacing a stolen stereo
Indirect Loss - 🧠 ANSWER ✔✔losses that occur because of direct losses.
Example: loss of income from a tenant due to a building burning down.
Peril - 🧠 ANSWER ✔✔the event that caused a loss covered by the policy.
Example: fire. (WHISLER acronym)
What is WHISLER stand for? - 🧠 ANSWER ✔✔Wind, Hail, Impact, Smoke,
Lightning, Explosion and Riot
Hazard - 🧠 ANSWER ✔✔condition that may cause a peril to occur or make
the loss more severe - divided into physical and moral hazards. Physical
hazards' example is slippery floors. Moral hazard example would be mental
attitudes about risk.
,What are the three classes of insurance? - 🧠 ANSWER ✔✔The classes of
insurance include personal and commercial lines as well as specialty risks.
Example: personal (jewelry), commercial (owned businesses) and specialty
(airports or high risk industry)
What is a liability insurance peril? - 🧠 ANSWER ✔✔It includes negligence -
when you are doing or not doing something that is expected by a
reasonable person.
Proximate Cause - 🧠 ANSWER ✔✔is the immediate and effective cause of
the loss in a chain of events leading to the loss, but is not necessarily the
last event before the occurrence
Immediate Cause - 🧠 ANSWER ✔✔last link in the chain of events
Remote Cause - 🧠 ANSWER ✔✔is separate from the proximate cause in
the chain of events leading to a loss (what could've been)
Indemnify - 🧠 ANSWER ✔✔compensate for loss, damage, or injury;
reimburse; repay. It is to bring the insured person back to the point they
previously were (no gain, no loss).
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, Pooling Funds for Loss - 🧠 ANSWER ✔✔A group of people will pay out for
insurance to insure the few that are injured. Losses of a few are shared by
the many.
What is the role of an insurance broker? - 🧠 ANSWER ✔✔Bring in two
parties together in a contractual relationship
What is spread of risk and how can it be done? - 🧠 ANSWER ✔✔Spreading
of risk is a way to achieve balance between premiums collected versus
losses paid. It is done through volume (large number of risks), diversity of
risk (different risk classifications) and diversity of location (not all risks in
one location).
What does the insurance money get used for? - 🧠 ANSWER ✔✔Insurance
money is a source of capital. it is invested in large amounts of capital to low
risk investments.
What is insurable interest? - 🧠 ANSWER ✔✔You must own the item that
you are insuring. You must benefit from its existence and suffer from its
loss. You cannot insure your neighbour's house.
