RIBO – General Questions and Correct Answer|
2026 Update| Score 100%
Which of the following provinces offer only government compulsory auto
insurance? correct answer: British Columbia, Manitoba and Saskatchewan
The definition of ordinary negligence? correct answer: Is the failure to do what a
reasonable person would do in a given situation.
A broker/agent is responsible for what? correct answer: Writing only those classes
of business acceptable to his/her insurer.
An insurance contract contains all of the elements of any other legal contract. One
element that must also be contained in a valid contract of insurance is what?
correct answer: Utmost good faith. C-82 Study 2 ("In it's underwear")
The definition of a physical hazard would best be described as what? correct
answer: Slippery floors, C-81 Study 1
Insurance is what? correct answer: The undertaking by one person to indemnify
another person against loss or Liability for loss in respect of a certain risk or peril
As far as reinsurance is concerned, the amount one party reinsures with another is
called what? correct answer: Its cession
True or False: The absence of true mutual understanding with respect to a contract
will not effect the legality of the contract once it has been signed correct answer:
False
Which of the following auto coverage responds regardless of fault? correct answer:
Accident Benefits, A B Pays Regardless of Fault
What is the name of the legal process used by insurers when collecting from a
responsible 3rd party? correct answer: Subrogation
True or False: Statutory Conditions can be changed at the request of the insured to
decrease minimum legislated coverage available. correct answer: False: Set out by
Insurance act
,Which of the following statements about co-insurance is true? correct answer:
They are designed to encourage the insured to carry adequate amounts of Insurance.
They force the insured to bear a portion of every loss if under insurance exists. It is
mostly applied to commercial policies.
Which of the following helps insurers determine the probability of insured losses
in the future? correct answer: Past loss histories (this is Step 2 in order to
determine rates and premiums)
When an insurer intentionally issues a policy that differs from the application.
correct answer: It must notify the insured in writing the ways in which it differs
from the application. 3 things must occur notify, writing, silence is acceptance
What would not affect the rate on a property insurance policy? correct answer:
Length of time applicant has been in business. (Not on the application)
Under RIBO regulation 991, section 15, a broker would not be considered to be
guilty of misconduct if: correct answer: The broker compares line for line, a
potential customer's present insurance coverage with that of a competing company,
which he or she represents, in order to point out the benefits of his proposed policy
coverage.
Of the following, the person who most clearly has an insurable interest in an
automobile is correct answer: The person who actually owns the automobile
Extension insurance is available in provinces having government automobile
insurance plans. correct answer: It may be used to increase limits of insurance
and/or reduce deductibles.
Which of the following types of insurance does not belong under the heading of
General Insurance? correct answer: Life Insurance
What do Applications for insurance policies do? correct answer: Provide details for
assessing and rating a risk.
True or False: Third parties are not a party to the policy. correct answer: True
True or False: Every member must maintain errors and omissions insurance of at
least $100,000 for any one occurrence. correct answer: False: Errors and
Omissions at 1 Million and Fidelity at 100 K
, A member who places insurance with an insurer unlicensed to trade insurance in
Ontario must? correct answer: Obtain the written consent of the member of the
public whom the broker services to the effect that they are aware their coverage
will be carried by an unlicensed insurer in the province.
Which of the following is NOT a stipulation of the broker's Code of Conduct as
found in RIBO regulation 991, section 14? correct answer: All members shall
assist in preventing the authorized practice of their occupation.
Under the RIB act definition, an insurance broker is all of the following, except:
correct answer: A person who arranges any payment plan for the premium due
under a contract of insurance. E R tells us payment plans acceptable we simply
hold in trust
Where the RIBO Discipline Committee finds a member guilty of misconduct, it
may do all of the following except: correct answer: Set fines of up to $10,000
and/or imprison the member for up to 12 months.
Under a fire policy the insurer will pay what? correct answer: The least of the
interest of the insured in the property. The property's actual cash value at the time
of the loss. The amount of insurance purchased which is applicable to the item lost
or damaged.
The insured decides to renovate their home. As a result they have to obtain
temporary residence until the work is completed. The Homeowner policy will pay
what? correct answer: None of the expenses. (not insured peril)
A property is insured for $100,000 and valued at $150,000. There is a 90%
coinsurance clause. A loss of $90,000 occurs. The insurer will pay: correct answer:
$66,667 (100,000/135,000 * 90,000= $66,667)
Under a Fire and Extended Coverage policy which item is not included? correct
answer: Earthquake.
When a standard Mortgage Clause is attached to a policy: correct answer: The
insurer could be called upon to pay a loss to the Mortgagee even though the
insured has violated a condition of the policy.
2026 Update| Score 100%
Which of the following provinces offer only government compulsory auto
insurance? correct answer: British Columbia, Manitoba and Saskatchewan
The definition of ordinary negligence? correct answer: Is the failure to do what a
reasonable person would do in a given situation.
A broker/agent is responsible for what? correct answer: Writing only those classes
of business acceptable to his/her insurer.
An insurance contract contains all of the elements of any other legal contract. One
element that must also be contained in a valid contract of insurance is what?
correct answer: Utmost good faith. C-82 Study 2 ("In it's underwear")
The definition of a physical hazard would best be described as what? correct
answer: Slippery floors, C-81 Study 1
Insurance is what? correct answer: The undertaking by one person to indemnify
another person against loss or Liability for loss in respect of a certain risk or peril
As far as reinsurance is concerned, the amount one party reinsures with another is
called what? correct answer: Its cession
True or False: The absence of true mutual understanding with respect to a contract
will not effect the legality of the contract once it has been signed correct answer:
False
Which of the following auto coverage responds regardless of fault? correct answer:
Accident Benefits, A B Pays Regardless of Fault
What is the name of the legal process used by insurers when collecting from a
responsible 3rd party? correct answer: Subrogation
True or False: Statutory Conditions can be changed at the request of the insured to
decrease minimum legislated coverage available. correct answer: False: Set out by
Insurance act
,Which of the following statements about co-insurance is true? correct answer:
They are designed to encourage the insured to carry adequate amounts of Insurance.
They force the insured to bear a portion of every loss if under insurance exists. It is
mostly applied to commercial policies.
Which of the following helps insurers determine the probability of insured losses
in the future? correct answer: Past loss histories (this is Step 2 in order to
determine rates and premiums)
When an insurer intentionally issues a policy that differs from the application.
correct answer: It must notify the insured in writing the ways in which it differs
from the application. 3 things must occur notify, writing, silence is acceptance
What would not affect the rate on a property insurance policy? correct answer:
Length of time applicant has been in business. (Not on the application)
Under RIBO regulation 991, section 15, a broker would not be considered to be
guilty of misconduct if: correct answer: The broker compares line for line, a
potential customer's present insurance coverage with that of a competing company,
which he or she represents, in order to point out the benefits of his proposed policy
coverage.
Of the following, the person who most clearly has an insurable interest in an
automobile is correct answer: The person who actually owns the automobile
Extension insurance is available in provinces having government automobile
insurance plans. correct answer: It may be used to increase limits of insurance
and/or reduce deductibles.
Which of the following types of insurance does not belong under the heading of
General Insurance? correct answer: Life Insurance
What do Applications for insurance policies do? correct answer: Provide details for
assessing and rating a risk.
True or False: Third parties are not a party to the policy. correct answer: True
True or False: Every member must maintain errors and omissions insurance of at
least $100,000 for any one occurrence. correct answer: False: Errors and
Omissions at 1 Million and Fidelity at 100 K
, A member who places insurance with an insurer unlicensed to trade insurance in
Ontario must? correct answer: Obtain the written consent of the member of the
public whom the broker services to the effect that they are aware their coverage
will be carried by an unlicensed insurer in the province.
Which of the following is NOT a stipulation of the broker's Code of Conduct as
found in RIBO regulation 991, section 14? correct answer: All members shall
assist in preventing the authorized practice of their occupation.
Under the RIB act definition, an insurance broker is all of the following, except:
correct answer: A person who arranges any payment plan for the premium due
under a contract of insurance. E R tells us payment plans acceptable we simply
hold in trust
Where the RIBO Discipline Committee finds a member guilty of misconduct, it
may do all of the following except: correct answer: Set fines of up to $10,000
and/or imprison the member for up to 12 months.
Under a fire policy the insurer will pay what? correct answer: The least of the
interest of the insured in the property. The property's actual cash value at the time
of the loss. The amount of insurance purchased which is applicable to the item lost
or damaged.
The insured decides to renovate their home. As a result they have to obtain
temporary residence until the work is completed. The Homeowner policy will pay
what? correct answer: None of the expenses. (not insured peril)
A property is insured for $100,000 and valued at $150,000. There is a 90%
coinsurance clause. A loss of $90,000 occurs. The insurer will pay: correct answer:
$66,667 (100,000/135,000 * 90,000= $66,667)
Under a Fire and Extended Coverage policy which item is not included? correct
answer: Earthquake.
When a standard Mortgage Clause is attached to a policy: correct answer: The
insurer could be called upon to pay a loss to the Mortgagee even though the
insured has violated a condition of the policy.
