RIBO UPDATED Exam Questions and
CORRECT Answers
The Manager, under the RIBO Act, may cancel the license of a member for non-payment of
any prescribed fee after giving the member at least: - Correct Answer- 1 month notice in
writing of the default and intention to cancel the registration subj...
RIBO UPDATED Exam Questions and
CORRECT Answers
The Manager, under the RIBO Act, may cancel the license of a member for non-payment of
any prescribed fee after giving the member at least: - Correct Answer- 1 month notice in
writing of the default and intention to cancel the registration subject to the continuing
jurisdiction of the Corporation.
Upon successful completion of the examination, you may qualify for registration as an
insurance broker. If issued, the registration will be "restricted to acting under supervision."
Which one (1) of the following most accurately describes the conditions under which you
may act as an insurance broker under supervision? - Correct Answer- You may not act as a
sole proprietor, nor be a "Principal Broker" as the term is used in the regulation, nor may you
control trust funds.
When news is received indicating that a member may be incapacitated, the information is
first referred to: - Correct Answer- The Manager.
An insurance broker owns and operates a real estate agent's office and gives his real estate
agents a commission for insurance leads and referrals. Choose the best answer: - Correct
Answer- The insurance broker has to have his RIBO license.
Which of the following actions is NOT prohibited under the RIB Act? - Correct Answer-
Giving a policyholder a box of chocolates at Christmas.
When a broker has decided to change their place of employment who is supposed to notify
RIBO? - Correct Answer- The broker within 30 days of the change.
The Peak Season Endorsement, which is used to increase stock coverage at specified times of
the year, is most effective for: - Correct Answer- Retail risks where stock values fluctuate
seasonally.
Professional bailees owe a greater degree of care than do gratuitous bailees because: - Correct
Answer- They hold other people's property for a fee.
, The main role of the agent or broker in arranging an insurance contract: - Correct Answer- Is
acting as the middleman between the parties involved.
In the insurance business, reserves are: - Correct Answer- The funds required by regulators to
be set aside for specific purposes.
Under the Commercial Building, Equipment and Stock - Named Perils Form, the items used
for maintenance and building services are covered under the: - Correct Answer- Building
section.
An insurer's calculation of pure premium should consider: - Correct Answer- The loss
statistics.
An insurer's retention on any one risk can be defined as being the: - Correct Answer- Amount
of insurance it will keep for its own account.
Underwriting can best be described as the: - Correct Answer- Selection of risks to insure.
According to the Statutory Conditions in a habitational insurance policy, after a loss, an
insured - Correct Answer- Must provide the insurer with a proof of loss as soon as possible.
The statutory conditions are set out by: - Correct Answer- The Provincial Act.
Which of the following is not a function of reinsurance? - Correct Answer- Financing.
The insured's three-year-old living room couch was damaged in a fire. The claim was settled
by establishing the replacement cost and then deducting for physical depreciation. This is an
example of: - Correct Answer- Actual Cash Value.
The components that reinforce the Principal of Indemnity are: - Correct Answer- Subrogation,
contribution and salvage.
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