RIBO ENTRY LEVEL 1 UPDATED Exam Questions and CORRECT Answers
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Module
RIBO
Institution
RIBO
RIBO ENTRY LEVEL 1 UPDATED Exam
Questions and CORRECT Answers
Risk - Correct Answer- Chance of a loss
Which type of risk is insured and why? - Correct Answer- Pure risk, because speculative risk
is comparable to gambling.
3 Ways risk (management) is dealt with? - Correct Answer- REDUCE: prev...
Which of the following is not a risk?
A) Assume or retain risk
B) Reduce the risk
C) Doing nothing / avoiding the risk
D) Transfer the risk - Correct Answer- C) Doing nothing / avoiding the risk
Insurer - Correct Answer- Insurance company
Stock Insurance company - Correct Answer- Owned by shareholders
Mutual insurance company - Correct Answer- Owned by policyholders - Usually smaller, for
Ex., One big claim can flux the premium. Once these companies become big they are titled
stockholders.
Co-operative associations - Correct Answer- Not looking to consume profits, these policies
are expected to be cheaper.
Lloyd's of London - Correct Answer- Not an insurance company but rather an insurance
market.
Ex. Syndicates are investors for things such as athletes legs, voices etc.
, High risk Vs. High reward.
Insured - Correct Answer- Who is covered.
Named insured = policy holder (owner)
What is not included in the general types of insurance? - Correct Answer- Life and Health
Application of insurance includes: - Correct Answer- Bonds, Liability, Accident / sickness,
Valued items, personal articles coverage/floater
Declaration - Correct Answer- Signed approving information provided is the upmost truth
Statutory conditions - Correct Answer- Provincial laws protecting both parties being the
insured and the insurer
Which of the following is the truest regarding effective and expiry date?
A) 12:00AM, Western time at location of insured.
B) 12:00PM, Standard time at location of insured.
C) 12:01AM, Eastern time at location of insured.
D) 12:01AM, Standard time at location of insured. - Correct Answer- D) 12:01AM, Standard
time at location of insured.
Agent VS Broker - Correct Answer- Agent: Works solely for ONE insurance company.
Broker: Independent of any insurance company but sells insurance for them.
Fiduciary, key word? - Correct Answer- Money.
Binding Authority - Correct Answer- Power given to a broker by a insurance company to sell
a policy.
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