RIBO – General Questions with Correct Answers
Which of the following provinces offer only government compulsory
auto insurance? Correct Answer-British Columbia, Manitoba and
Saskatchewan
The definition of ordinary negligence? Correct Answer-Is the failure to
do what a reasonable person would do in a given situation.
A broker/agent is responsible for what? Correct Answer-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? Correct Answer-Utmost good faith. C-82 Study 2
("In it's underwear")
The definition of a physical hazard would best be described as what?
Correct Answer-Slippery floors, C-81 Study 1
Insurance is what? Correct Answer-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? Correct Answer-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 Correct Answer-False
Which of the following auto coverage responds regardless of fault?
Correct Answer-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? Correct Answer-Subrogation
True or False: Statutory Conditions can be changed at the request of the
insured to decrease minimum legislated coverage available. Correct
Answer-False: Set out by Insurance act
Which of the following statements about co-insurance is true? Correct
Answer-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? Correct Answer-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. Correct Answer-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? Correct
Answer-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: Correct Answer-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 Correct Answer-The person who actually owns the
automobile
Extension insurance is available in provinces having government
automobile insurance plans. Correct Answer-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? Correct Answer-Life Insurance
What do Applications for insurance policies do? Correct Answer-
Provide details for assessing and rating a risk.
, True or False: Third parties are not a party to the policy. Correct
Answer-True
True or False: Every member must maintain errors and omissions
insurance of at least $100,000 for any one occurrence. Correct Answer-
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? Correct Answer-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? Correct Answer-
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: Correct Answer-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: Correct Answer-Set
fines of up to $10,000 and/or imprison the member for up to 12 months.
Which of the following provinces offer only government compulsory
auto insurance? Correct Answer-British Columbia, Manitoba and
Saskatchewan
The definition of ordinary negligence? Correct Answer-Is the failure to
do what a reasonable person would do in a given situation.
A broker/agent is responsible for what? Correct Answer-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? Correct Answer-Utmost good faith. C-82 Study 2
("In it's underwear")
The definition of a physical hazard would best be described as what?
Correct Answer-Slippery floors, C-81 Study 1
Insurance is what? Correct Answer-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? Correct Answer-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 Correct Answer-False
Which of the following auto coverage responds regardless of fault?
Correct Answer-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? Correct Answer-Subrogation
True or False: Statutory Conditions can be changed at the request of the
insured to decrease minimum legislated coverage available. Correct
Answer-False: Set out by Insurance act
Which of the following statements about co-insurance is true? Correct
Answer-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? Correct Answer-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. Correct Answer-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? Correct
Answer-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: Correct Answer-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 Correct Answer-The person who actually owns the
automobile
Extension insurance is available in provinces having government
automobile insurance plans. Correct Answer-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? Correct Answer-Life Insurance
What do Applications for insurance policies do? Correct Answer-
Provide details for assessing and rating a risk.
, True or False: Third parties are not a party to the policy. Correct
Answer-True
True or False: Every member must maintain errors and omissions
insurance of at least $100,000 for any one occurrence. Correct Answer-
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? Correct Answer-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? Correct Answer-
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: Correct Answer-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: Correct Answer-Set
fines of up to $10,000 and/or imprison the member for up to 12 months.
