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RIBO TEST #3 HOME INSURANCE Questions and Answers with Solutions 2024/2025
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RIBO TEST #3 HOME INSURANCE Questions and Answers with Solutions 2024/2025
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RIBO TEST #3 HOME INSURANCEIn the Homeowners Comprehensive Policy, there are Extensions of Coverage provided. Which
of the following extensions increase the amount of insurance?
a. Tear Out
b. Moving to Another Home Incorrect
c. Arson Conviction Reward
d. Lock Replacement - ANSArson Conviction Reward
Which of the following statements is CORRECT about the Highway Victims Indemnity Fund? -
ANSIt will not pay if the claimant is totally responsible for causing the accident.
To cover costs for a business to lease a new location to continue business after an insured loss,
the business will require which of the following?
a. Profits coverage
b. Extra Expense coverage
c. Extended Business Profit endorsement Incorrect
d. Gross Earnings coverage - ANSExtra Expense coverage
Your insured owns two secondary residences on the same property and rents one out for $500
per month. A windstorm totally destroys the rental residence and it will take five months to
rebuild the dwelling. The Secondary Policy covers the building for $100,000 subject to a $500
deductible. How much would the insured collect under the Rental Value section of the
Secondary Policy in addition to the total loss of the dwelling?
a. $2,500
b. $2,000 Incorrect
c. Nothing, as the Rental Value section is included in the policy limit
d. $500 - ANSNothing, as the Rental Value section is included in the policy limit
Common law?
a. It is the expressed will of the common people governing relationships among all members of
society regardless of their status.
b. It is a body of well-defined legal principles set out in thousands of court decisions over
hundreds of years.
c. It is the written law upon which judges make their decisions without being bound by what
other judges have done in the past. Incorrect
d. It is a written or codified law in the form of acts or statutes created by acts of the federal and
provincial legislatures. - ANSIt is a body of well-defined legal principles set out in thousands of
court decisions over hundreds of years.
An independent agent or broker must maintain a trust account
a. into which all commission amounts are transferred.
, b. from which all business expenses are paid.
c. from which net premiums are paid to insurers.
d. into which amounts are transferred to meet emergencies. Incorrect
Feedback - ANSfrom which net premiums are paid to insurers.
In Section 2 Liability Coverage of the Homeowners Comprehensive Policy, coverage is provided
for Voluntary Payment for Damage to Property in which of the following situations?
Select one:
a. Property of others damaged intentionally by the insured's 10-year-old son, for which he is not
legally liable.
b. Damage to a ride-on lawnmower rented from a local rental establishment.
c. Damage caused by a guest, who backed an automobile into a portable barbeque which the
insured had borrowed from a neighbour. Incorrect
d. Loss by theft from the insured's premises of a shotgun on loan from a local sporting goods
store. - ANSProperty of others damaged intentionally by the insured's 10-year-old son, for which
he is not legally liable.
Policyholders pay premiums to an insurance company. Which of the following is the primary
responsibility of the insurance company?
Select one:
a. Manage the funds and pay a few of the losses from it to certain members who suffer them
Incorrect
b. Invest the premium money to make a profit that is owned and shared by all policyholders
c. Manage the funds and pay losses covered by it to those members who suffer them
d. Invest the premium money to make a profit for the shareholders - ANSManage the funds and
pay losses covered by it to those members who suffer them
An independent agent or broker must maintain a trust account
. a.into which all commission amounts are transferred.
b. from which all business expenses are paid.
c. from which net premiums are paid to insurers.
d. into which amounts are transferred to meet emergencies. - ANSfrom which net premiums are
paid to insurers.
Your client has closed her seasonal residence for the winter and is not intending to return until
spring. What is the status of the premises?
Select one:
a. Unoccupied
b. Vacant Incorrect
c. Vacant and unoccupied
d. No material change has taken place - ANSUnoccupied
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