RIBO EXAM OCT 23

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Burglars enter the insured's unlocked seasonal residence and steal some of the contents. Under the basic "Seasonal Dwelling Fire & Extended Coverage form the loss is

covered subject to policy deductible

covered only if forcible signs of entry are visible. (correct)

covered up to $500 only for building damage.

not covered

Your clients have just bought a condominium unit and intend to renovate the kitchen completely. How would you arrange insurance on these renovations under a Condominium Unit Owners Comprehensive policy?

Find out the cost of the kitchen renovations and increase the limit of insurance on Personal Property. (correct)

Nothing special is needed. The improvements will be considered part of the building and are therefore covered by the Condominium Corporation's insurance

Increase the coverage amount on Improvements and Betterments to include the cost of these renovations.

The renovations are covered automatically as part of the Unit under Coverage Al and therefore no action will be Acessary.

The RIB Act grants to the Discipline Committee of RIBO, power to impose penalties on members found guilty of misconduct, which is defined under Section 15(1) of Ontario Regulation 991. Which one (1) of the following practices is NOT defined as "misconduct in the Regulations?

Fallure to carry on business in a manner consistent with the Code of Conduct.

The payment of any referral fee or finder's fee to any person whose occupation is not described in Ontario Regulation 991, Section 15.

Using an llustration, circulation or memorandum to represent the terms, benefits or advantages of any policy or contract of insurance. (correct)

Providing false or misleading information to R.1.8.0.

A local automobile dealer offers to pass leads to you as a registered insurance broker when cars are sold to customers who require automobile insurance In return, he/she wants the premium their spouse's car automobile insurance to be reduced. How would you respond to this request?

I can pay you a referral fee equal to the first year's premium. Signup and view all the answers

Mrs Jones and her husband have two cars. Their daughter, aged eighteen (18), just bought a car and Mrs. Jones asks you to insure it. Which one (1) of the following would be correct?

Show Mr. Jones as the principal driver on the application form. Signup and view all the answers

Which one (1) of the following statements about Accident Benefits Coverage under 0.A.P. 1 Owner's Policy is INCORRECT?

pays prescribed amounts for bodily injury in an automobile accident but only the insured is found at fault 50% or less Signup and view all the answers

A client, who has just been discharged from hospital following serious illness, decides to take an extended trip with his wife while convalescing He phones you to arrange travel health insurance for both of them. Which one of the following policy conditions should you draw to his attention?

Coverage on himself and his wife is for accident only while travelling Signup and view all the answers

Which one (1) of the following situations is covered under the "Watercraft, Outboard Motor Trailer, and Miscellaneous Equipment" coverage rider attached to a Homeowners policy?

A scheduled boat and motor vessel used to carry cottagers from the marina to their island property for compensation. Signup and view all the answers

When determining the actual cash value of a building, which one (1) of the following factors is NOT taken into consideration?

The normal life expectancy of the building Signup and view all the answers

45--Which one (1) of the following statements is true with respect to the Tenants Comprehensive policy?

Watercraft not otherwise described or limited are covered up to $5,000, Signup and view all the answers

46--Newly acquired automobiles are automatically covered under an O.A.P. 1 Owners Policy provided the insurer is notified:

as soon as practicable Signup and view all the answers

47--The ribo Code of Conduct is outlined in Ontario Regulation 991, Section Which one of the following provisions is NOT outlined in the Code of

anger accept any fee which is not fully disclosed prior to the service Signup and view all the answers

48--An insurer cancels an automobile policy mid-term for reasons other than non-payment of premium and issues a registered letter of cancellation to the insured. Will the insured be entitled to a refund of premium from the insurer?

Yes a pro-rata refund of the unearned premium Signup and view all the answers

49-- which one (1) of the following is the correct way to insure a snowmobile?

by endorsement to a Homeowners or Tenants policy to cover Third Party Lability and a Personal Articles Floater for direct damage to the machine Signup and view all the answers

51--Addtional Conditions of a Personal Property Policy include a reference to Parts Which one (1) of the following statements about "Parts" is correct?

property is made up of several parts, loss or damage to any one or more pars will be considered loss or damage to the entire property. Signup and view all the answers

52--The Regulations under the RB Act require an insurance broker to provide endence that insurance has been placed on behalf of a client. How must this be done and within what time period?

By providing a policy or certificate of coverage to the member of the public for whom he she acts within twenty-one (21) days after the placing of the Signup and view all the answers

53-- Whose rights are protected by the Statutory Conditions in a Property policy?

The insured. Signup and view all the answers

55-- Which one (1) of the following does NOT need to be established in advance when discussing travel health insurance with an applicant?

The exact travel dates Signup and view all the answers

57-- Laws regulating the zoning, demolition, repair or construction of buildings and their related services can increase costs of repair to buildings. Can these increased costs be insured?

Yes, they are insurable if specified in a property policy. Signup and view all the answers

56-- Which one (1) of the following statements is true for an applicant whose registration certificate is restricted to Acting Under Supervision"?

he can set up and establish his/her own firm, providing he/she arranges for another broker to countersign his/her insurance policies. Signup and view all the answers

60-- Insurance terms a "peril" is frequently described as a cause of loss while an exposure is a hazard threatening a risk due to internal or external physical conditions. Which one (1) of the following is NOT a peril?

Burgery Signup and view all the answers

59--An insurer issues a policy and later discovers the insured had, at the time of application, made a misrepresentation. Which one (1) of the following options can the insurer take?

The insurer can void the contract at its option, Signup and view all the answers

61--A building worth $120,000 is insured for $60,000 under a fire policy with an 80% co-insurance clause. Fire damages the building to the extent of $104,000 Howmuch would the insurer pay?

$50.000.00 Signup and view all the answers

63-- "Freezer Foods Coverage" provides for payment of loss caused by spoilage of frozen foods contained in your food freezer on your premises. Which one (1) of the following conditions apply to this coverage?

It covers actual cash value at current market prices up to $5,000 less deductible Signup and view all the answers

64--Travel heath policies contain certain limitations that are important to b explained to applicants for such insurance. Which one (1) of the following is NOT a commonly found limitations?

Hospital or medical treatment where the policy is sought specifically for the purpose of obtaining such treatment, whether recommended by a physician Signup and view all the answers

62--Your client was recently widowed. She is selling her home and buying a condominium unit in a high rise building. She asks what changes she will need to make to her Homeowners insurance. What would be your reply?

The improvements to her unit do not need to be included in her policy because they are insured by the Condominium Corporation's Master Policy, otherwise she now needs a Tenants Comprehensive Policy. Signup and view all the answers

66--Which one (1) of the following conditions affects the amount of settlement of an insured loss?

Co-insurance Clause. Signup and view all the answers

67-- Which one (1) of the following statements accurately describes a deductible cause in an insurance policy?

does not apply if the policy covers only fire and extended coverage perils. Signup and view all the answers

65--Nearly every insurance policy has Policy Conditions which are common to al policies issued in a particular class. Some policies also contain Statutory Conditions. Which one (1) of the following class of insurance policies contain Statutory Conditions?

Marne insurance policy Signup and view all the answers

68--Under the Compulsory Automobile Insurance Act, irrespective of whether or not you believe an applicant for automobile insurance is acceptable to any of your insurers, if he/she requests that you provide him with automobile insurance, you are required to:

do nothing. You can advise the applicant you do not wish to do business with him/her. Signup and view all the answers

69--A tenant in a high rise apartment negligently starts a grease fire and causes severe smoke damage to his/her own apartment including the hallways of the building and two other apartments. Under which part of the Liability section of his/her Tenants Comprehensive policy would the damage to the two other apartments be covered?

Personal Liability (Coverage E Signup and view all the answers

70-- Which one (1) of the following incidents is covered under the Liability Section of a Homeowners policy?

Damage caused by the insured's 30 foot sailboat while under sail. Signup and view all the answers

72--Business interuption insurance gives protection against loss of earnings for which one (1) of the following events?

A shut down reading from the landlord dedering bankruptcy. Signup and view all the answers

71-- A claim for "Additional Living Expense under a Homeowners Comprehensive policy would NOT be covered if which one (1) of the ng events occurred?

The Fire Department prohibits access to your insured's home for one week as rest of frem a regionung home. Signup and view all the answers

73--Your insured parks his/her automobile at a shopping mall while shopping and on return finds it has been damaged by another vehicle. Your insured has OAP. 1 Owner's Policy with Liability, standard Accident Benefits, Direct Compensation Property Damage, Comprehensive and OPCF 44R-Family Protection coverages. Which section of the policy would cover the damage?

OPCF 44 Family Protection Signup and view all the answers

75--There are a number of insurance policies which are designed for specific purposes Which one (1) of the following is designed to give Third Party Liability protection to an employer whose salesmen use their own vehicles in the course of their employment?

Commercial General Liability Policy. Signup and view all the answers

76--Which one (1) of the following types of claim under "Section 7-Loss or Damage Coverages of OA.P. 1 Owner's Policy is NOT subject to a deductible?

Collision Signup and view all the answers

74-- Which one (1) of the following statements best defines a "mortgagor"?

is the one to whom the money is owed. Signup and view all the answers

77-- The term fiduciary refers to individuals or organizations occupying positions of trust. Which one (1) of the following would NOT be considered a fiducery?

An insurance broker Signup and view all the answers

78--Which one (1) of the following statements about "Section 6-Direct Compensation-Property Damage Coverage" of O.A.P. 1 Owner's Policy is INCORRECT?

The policy on the other vehicle must be issued by an Ontario licensed insurer or one that has filed with the Financial Services Regulatory Authority of Ontario to provide this coverage. Signup and view all the answers

79--An insurance broker agreed to bind liability coverage, the premium for which the applicant promised to pay the following week. Before any payment was made, a claim was made by a third party. What special action, Fany would the insurer take?

Obtain a signed Waiver of Subrogation" from the applicant/insured. Signup and view all the answers

81--To what extent does "Coverage A2-Loss Assessment" in a Condominium Unt Owners Comprehensive policy cover an assessment against a unit owner?

Any covered assessment made by the Condominium Corporation up to $10,000 or the limit specified in the Unit Owners policy declarations. Signup and view all the answers

82--Your insured has leased an automobile for three years and requires automobile insurance. The correct procedure would be for you to:

Issue 0AP. 1 Owner's Policy, suitably endorsed. Signup and view all the answers

80-- One of three tenants in your insured's rented triplex, sets fire to his apartment is charged with arson and jailed. Next day the tenant's wife bails out her husband who allegedly set the fire and they return to live in the damaged apartment. The insurance company wishes to retire from this risk as soon as possible. What procedure must the insurer follow to legally cancel the policy?

Insurer can cancel in five days by written notice of termination personally delivered and any return premium paid to insured. Signup and view all the answers

84--Which one (1) of the following is NOT true of the "Replacement Cost" coverage under a Homeowners Comprehensive policy?

Replacement cost coverage for contents must be endorsed on to the policy. Signup and view all the answers

83--Section 4-Accident Benefits Coverage" of O.A.P. 1 Owner's Policy includes which one (1) of the following provisions?

Income Replacement Benefits for persons employed at the date of accident ather for the first 10 days of disability. Signup and view all the answers

85--Which one (1) of the following statements is true regarding Replacement Cost insurance?

Most insurers do not require an insured to replace a damaged property as a condition to be indemnified for its Replacement Cost Signup and view all the answers

87--Which one of the following statements best describe "subrogation?

more than one property is destroyed in the same Signup and view all the answers

88--Which one (1) of the following liability coverages is intended to protect an insured who is planning to build a new home and will be sub-letting part of the work to subcontractors?

Employers liability insurance Signup and view all the answers

86--What is the purpose of the "Pair and Set" clause in a Property insurance policy

protects the insurer from having to pay for a total loss when only part of a pair or set is lost or damaged. Signup and view all the answers

as between Gcano registered and insured cars with permanent serious disfigurement. The other insured pemament nor serious. Both cars are blame for the accident. Which one (1) of the following her one is mured for collision damage. Both drivers are

bed to sue the other driver for his/her injuries Signup and view all the answers

89--Your insured phones and tells you that while visiting a friend, he/she has acidentally burnt a small hole in the friend's oriental rug. The insured wishes to know if the cost of repairing the rug is covered under the Tenants Comprehensive policy. What would be your response?

Yes, coverage under the Voluntary Property Damage section would apply. Signup and view all the answers

90--Which one of the following is a possible affect of a "Co-insurance Clause on the settlement of a loss?

the amount to be paid by the insurer Signup and view all the answers

Which one (1) of the following statements is NOT correct?

Factory Mutuals sell insurance to factory employees. Signup and view all the answers

26..The Facility Association was established by the insurance industry to insure automobile risks which do not find ready acceptance on the open market Which one (1) of the following statements describes it best?

As made up of insurers known as servicing camers, which pool ris among themselves on behalf of the Provincial Government Signup and view all the answers

28...A person involed in an automobile accident in Ontario may be allowed to take illegal action against those legally responsible under certain circumstances Which one (1) of the following statements is correct?

only calcaneal benefits are entitled to sue Signup and view all the answers

Your insured is required to sign a waiver which the landlord from liability for injury or damage occuring on the persons being rented. A fire in the building seriously damages your insured's things. He/She has a tenants compressive policy through your brokerage. it is established that the landlord was responsible for the fire. which one of the following is true regarding coverage under your insured's policy?

the insured would pay the lossor would be unable to subrogate Signup and view all the answers

which of the following statements correctly completes the sentence A proof of loss form is normally,

filed by an appraiser acting for the insured after a loss Signup and view all the answers

Which one of the following classes of the insurance is designed indermity a business for loss of income due to fire damage to building stock and equipment?

accident and sickness insurance Signup and view all the answers

1.. which one of the following is the defination of burglary by the insurance industry

it is a theft with violence or threat of violence Signup and view all the answers

which one of the following kinds of property does the homeowners compressive policy automatically covers

personal belongings tamporally stored in a warehouse for all perils listed in the policy Signup and view all the answers

your insured calls to report he/she will be using his/her automobile to carry senior citizens each day from a nursing home to various locations in the city . your insured will be paid 15 cents a kilometer for the use of the car. what action should you take?

add passenger hazzard endorsement at no extra premium Signup and view all the answers

43.. from whom does a broker obtain its authority to bind coverage on a risk?

from the insurance act Signup and view all the answers

44..Your client has a Homeowners Comprehensive policy through your office. She decides to go into business for herself and opens up a hairdressing salon in her home without telling you. She has no employees. To what extent may this affect her insurance policy?

Coverage is automaticaly suspended until a hydro certificate is obtained regarding the electrical outlets Signup and view all the answers

36.which one of the following is a "lessee"of a property?

it is the person to whom the rent is paid Signup and view all the answers

When does the RIB act require an individual to be registered as an insurance broker?

If the individual recommends to friends they purchase insurance from a specific insurer because of the good deal he/she obtained for insurance Signup and view all the answers

The contents of a building are valued at $200,000 but insured for only 000 The policy insuring the contents has a 90% co-insurance clause $1,000 deductible clause. A fire totally destroys everything. How much would the policy pay?

1,19.000.00 Signup and view all the answers

42.. Your insured calls to report he/she will be using hoher automobile to carry senior citizens each day from a nursing home to various locations in the city Your insured will be paid 15 cents a kilometre for the use of the car. What action should you take?

. Advice that the standard policy automatically covers the situation and o dangers if necessary Signup and view all the answers

Which one (1) of the following is a hazard as it pertains to insurance?

Bare electrical wires. Signup and view all the answers

From whom does a broker obtain its authority to bind coverage on a risk?

A. From the insurance Acty is not affected Signup and view all the answers

14.What is Actual cash value?

The replacement cost at the time of loss less depreciation Signup and view all the answers

44.Your client has a Homeowners Comprehensive policy through your office. She decides to go into business for herself and opens up a hairdressing salon in her home without telling you. She has no employees. To what extent may this affect her insurance policy?

C. It is a change material to the risk and the coverage could be impaired because of failure to notify the insurer Signup and view all the answers

Where there is a co-insurance clause in a replacement cost policy, it is necessary to determine:

The replacement cost of the property. Signup and view all the answers

A small retail establishment in your community temporarily closes and the properieter leaving the contents undisturbed, takes a three- month vacation and business improves. From an insurance standpoint, what is the status of the premises?

The premises are vacant Signup and view all the answers

17.Who is protected by the standard Mortgage clause in a property insurance policy?

The one who lends the money and the insurer of the property Signup and view all the answers

One of the following statements is correct. Which one (1) is it. Electronic accessories or equipment are covered under O.A.P. 1 Owner's Form:

For their full actual cash value if factory installed. Signup and view all the answers

41.. Which one (1) of the following kinds of property does the Homeowners Comprehensive policy automatically cover?

Detached prate structures on the insured's premises Signup and view all the answers

54.. A dwelling valued at $200,000 is owned by three persons. A has $100,000 metas $60,000 invested and Chas $40,000. A resides in the house. tised for $150,000. The building is totally destroyed by fire. How much would A receive?

$75.000 o0 Signup and view all the answers

An insurer may reject a risk for any number of reasons. Which one of the following is NOT actually a reason for rejection?

The risk may be much more hazardous than the average that it has the potential for denied certain loss Signup and view all the answers

Your client has a $200 000 Homeowners Comprehensive policy with a $200 deductible. They are planning to build a new garage and begin to buy the necessary building materials. $2000 worth of materials is stored in their backyard and $3000 worth in the brother's garage two blocks away. The brother's garage is totally destroyed by fire, along with your client's materials stored there. How much can your client collect under their own policy?

Nothing Signup and view all the answers

Your insured has an O.A.P 1 Owners policy and asks if the policy will cover driving in Mexico, Arizona, California and Huwaii as well as in Canada. You Confirm the policy will cover

In canada only Signup and view all the answers

12.. all clients should be counselled regarding the regarding the availability of enhancement Options available under de OAP1 Owners Policy, Which one (1) of the fllowing is an avaaliable enhancement ?

Funeral Benefits MAximum to $10,000.00 Signup and view all the answers

What does it mean when an insured is indemnified by an insurer after a loss?

The co-insurance conditions have been satisfied Signup and view all the answers

18... The liability section of the homeowners Comprehensive policy provides coverage for certain financial obligations of the insured. aganist which one of the following obliagtions would the insured be protected!

liabillty for damage by burglary to a summer cabin your insured rents for his/her vacation and resulting form his/her negligence. Signup and view all the answers

Your client owns a condominium unit. The kitchen cabinets and stove are damaged by fire and the wallpaper sustains a smoke damage. Estimates obtained are $750 to replace the stove, $1000 to repair the cabinets and $250 to clean the wallpaper. Your client insured under condominium unit owners comprehensive policy subject to $300 deductible clause. How much can your client expect to recover under the policy?

$750 for stove only less $300 deductible Signup and view all the answers

20.. An insurer may reject a risk for any number of reasons. Which one (1) of the following is NOT usually a reason for rejection?

the risk may be so much more hazardous than the average that it has the potential for almost certain loss Signup and view all the answers

Detached private structures may be covered at the option of the insured under the secondary residence fire and extended coverage section of the homeowners comprehensive policy. What is the most that can be claimed to apply to the less valuable of two such private structures?

That proportion of 10% of the amount of insurance on the dwelling building that the value of the destroyed structure bears to the total value of both structures Signup and view all the answers

Which of the following is correct about uninsured automobile coverage?

Can cover accidental damage to the insured's automobile, provided the uninsured owner or driver of the other automobile is identified. Signup and view all the answers

25.. Which one (1) of the following statements is true about the OAP 1 owner's policy optional coverage "OPCF 44R-Family Protection Coverage ?

it is automatically included under section 4- accident benefits of the policy Signup and view all the answers

28.A person involved in an automobile accident in ontario may be allowed to take legal action against those legally responsible under certain circumstances. Which of the following statements is correct?

No claimants are eligible to sue for loss of future income Signup and view all the answers

You are completing an application for travel health insurance with a client, he informs you he will be hang gliding during his trip. What would you tell him?

He is not insured while hang-gliding but is insured the rest of the time on the trip Signup and view all the answers

32.To comply with RIBO By law No. 20 any changes of employment must be reported to RIBO? Which one of the following is not correct?

The individual changing employment must notify RIBO within 30 days of the change Signup and view all the answers

On renting an apartment, your insured is required to sign a waiver which releases the landlord from liability for injury or damage occurring on the premises being rented. A fire in the building damages your insured's furnishings. He/she has a tenants comprehensive policy through your brokerage. It is established that the landlord was responsible for the fire. Which of the following statements is correct regarding coverage under the policy?

The insurer will pay the loss but would be unable to subrogate. Signup and view all the answers

Your insured has brought a snowmobile and has called to advise you that his 14 year old son will also be driving the new machine. Your insured has an existing OAP1 policy for the snowmobile. What do you tell your insured?

There is no coverage while the son is driving the snowmobile as he is too young to have a driving license Signup and view all the answers

A policy is considered as a ' Valued policy if its terms includes which one of the following?

It states that the subject matter is valued at and insured for a stated amount, which will be paid at thye event of total loss Signup and view all the answers

Which one of the following statements correctly completed the sentence? A "Proof of Loss" form is normally

Filed by the insured making claim againbst his/her own insurer Signup and view all the answers

Which one (1) of the following classes of insurance is intended to indemnify a business for loss of income due to fire damage to building, stock and equipment?

Accident and Sickness Insurance. Signup and view all the answers

A building worth $100,00 is insured for $60,000 under a policy with an 80% co-insurance clause. Fire damages the building to the extent of

na Signup and view all the answers

Whch one of the following is the definition of burglary by the insurance industry?

It is theft by forcible entry into from the premises Signup and view all the answers

Which one of the following steps should an insured person take if emergency medical treatments or hospitalization outside canada is

n Signup and view all the answers