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RIBO: ENTRY LEVEL 1 Questions with Correct Answers
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RIBO: ENTRY LEVEL 1 Questions with Correct Answers
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RIBO: ENTRY LEVEL 1 Questions with CorrectAnswers
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:
preventative measures
ASSUME/RETAIN: Self-insure
TRANSFER: purchase insurance
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.
(Company tells you what you can and cannot sell).
Street light Ex.
Green = insured fits
Yellow = insured has some flaws but they may be over seen
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