RIBO - General Questions and Answers with complete solution

Which of the following provinces offer only government compulsory auto insurance? - Answer-British Columbia, Manitoba and Saskatchewan The definition of ordinary negligence? - Answer-Is the failure to do what a reasonable person would do in a given situation. A broker/agent is responsible for what? - 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? - Answer-Utmost good faith. C-82 Study 2 ("In it's underwear") The definition of a physical hazard would best be described as what? - Answer-Slippery floors, C-81 Study 1 Insurance is what? - 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? - 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 - Answer-False Which of the following auto coverage responds regardless of fault? - 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? - Answer-Subrogation True or False: Statutory Conditions can be changed at the request of the insured to decrease minimum legislated coverage available. - Answer-False: Set out by Insurance actWhich of the following statements about co-insurance is true? - 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.