RIBO EXAM (practice online) Questions
With Correct Answers.
Risk - answer✔✔Chance of Loss- where the object of insurance maybe exposed
Peril - answer✔✔Cause of loss (wind, fire, water)
Indemnification - answer✔✔When insurer provides exact amount of loss, no more no less -
provided in money or another item of similar value
Covered losses - answer✔✔Accidental and future (not on purpose or in the past)
Alternatives to payment - answer✔✔Repair or replacement
three types of insurers - answer✔✔Stock-Operates on private funds from the stock market
mutuals- owned by its policyholders and aims to give the lowest cost
government- public
Broker/agent- who do they work on behalf of? - answer✔✔Broker- their client
agent-their company
Floaters cover property having a ____ - answer✔✔High degree of mobility
Within travel health insurance, pre-existing conditions are covered provided clients receive no
treatment, change in medication or medical consultation in the ____ days prior to departure -
answer✔✔90 days
Brokers should hold unearned commissions ___ to refund their clients in the event the policy is
cancelled prior to its expiry date. - answer✔✔in trust
Can you insure more than one vehicle on the same policy - answer✔✔no
The RIBO Qualifications and Registration Committee is responsible for establishing and
maintaining standards of competence for insurance brokers, including _____ and providing
information and assistance to brokers - answer✔✔exams
____ insures the legal liability of medical professionals arising out of rendering or failure to
render professional services - answer✔✔malpractice insurance
The most practical and common means of dealing with risk in Canada is - answer✔✔the transfer
of risk to an insurance company
____ acknowledges changes to the terms in the insurance contract - answer✔✔both
endorsements and riders
_____ are rules and regulations governing the rights and responsibilities of all parties to a
contract of insurance - answer✔✔statutory conditions
In Ontario, the automobile insurance application requires that the insured provide an insurance
history for the last _____ years, so that the insurer can assess the risk and determine the premium
- answer✔✔6
When one insurer transfers or cedes a portion of its risk to another insurer, this is called __ -
answer✔✔reinsurance
A surety guarantee made by a contractor when a contractor bids on a tender for construction of a
large project is called a __, and it guarantees that the contactor will enter into a contact to
perform the work at the tendered price and provide whatever security is specified to ensure
performance of the contract - answer✔✔bid bond
In Quebec, the government maintains a monopoly on __for automobile accidents occurring in
that province; other coverages may be purchased from private insurers except -
answer✔✔personal injury costs
When an insurer intentionally issues a policy that differs from the application, ______ -
answer✔✔insurer must notify the insured in writing the ways in which it differs from the
application
When there is a property insurance claim, in order to check the limit of the insured's insurance,
the insurance adjuster checks the ____ - answer✔✔insureds policy
The license term (# of yrs) for an insurance broker in Canada is___ - answer✔✔varies province
by province
covered or not? ground water or rising of the water table, or surface water - answer✔✔no
The ongoing process whereby an automobile decreases in value as it ages is called __ -
answer✔✔depreciation
An insurance brokers license can be terminated for __ - answer✔✔unethical conduct
In Ontario, the standard behaviour of insurance brokers is described in __ - answer✔✔RIB Act
insurance will only pay if - answer✔✔in the event of the happening of a certain risk or peril
RIBO has a committee that oversees complaints and investigations called __ - answer✔✔code of
conduct committee
an umbrella policy - answer✔✔Provides excess insurance over another policy
T/F: The owner of a known wild or ferocious animal, such as a ferret, is not responsible for the
animals behaviour, such as biting, chewing or digging - answer✔✔False
Which of the following is NOT covered on a personal line liability policy? - answer✔✔Special
Damages
_____ guarantee payments of duties or taxes that businesses collect at the time of sale and then
submit to the Canadian government. Examples are customs warehouses and distillers -
answer✔✔customs and excise bonds
The basis of a settlement under a valued policy will be the value agreed to by the insured and
insurer, and the insurer will normally require that the insured's valuation be confirmed by _____
- answer✔✔a qualified appraiser
Which of the following items is NOT included under the dwelling building coverage of a
Comprehensive Homeowners Policy - answer✔✔
Which of the following items is NOT included under the dwelling building coverage of a
Comprehensive Homeowners Policy (pool, greenhouse, permanent outdoor fixture, plants) -
answer✔✔greenhouse
When an accident occurs, legal costs of the insured are completely covered within the ____ -
answer✔✔liability insurance policy limit
The commercial property 3-D policy includes an agreement that covers __ - answer✔✔employee
dishonest, deposit forgery, money orders and counterfeit paper currency
The three (3) criteria used by an Adjuster in determining the amount of a loss; 1. the interest of
the insured in the property, 2. amount of insurance specified in the declarations page in respect to
that property, and 3. __ - answer✔✔actual cash value of the property at the time of loss
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