RIBO PRACTICE EXAM QUESTIONS &
ANSWERS 2024/2025
Risk - ANSWERSChance of Loss- where the object of insurance maybe exposed
Peril - ANSWERSCause of loss (wind, fire, water)
Indemnification - ANSWERSWhen insurer provides exact amount of loss, no more no less - provided in
money or another item of similar value
Covered losses - ANSWERSAccidental and future (not on purpose or in the past)
Alternatives to payment - ANSWERSRepair or replacement
three types of insurers - ANSWERSStock-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? - ANSWERSBroker- their client
agent-their company
Floaters cover property having a ____ - ANSWERSHigh 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 -
ANSWERS90 days
Brokers should hold unearned commissions ___ to refund their clients in the event the policy is cancelled
prior to its expiry date. - ANSWERSin trust
,Can you insure more than one vehicle on the same policy - ANSWERSno
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 - ANSWERSexams
____ insures the legal liability of medical professionals arising out of rendering or failure to render
professional services - ANSWERSmalpractice insurance
____is essential for contractors and others whose work may result in injury or damage when such work
is put to its intended use - ANSWERScompleted operations coverage
The most practical and common means of dealing with risk in Canada is - ANSWERSthe transfer of risk to
an insurance company
____ acknowledges changes to the terms in the insurance contract - ANSWERSboth endorsements and
riders
_____ are rules and regulations governing the rights and responsibilities of all parties to a contract of
insurance - ANSWERSstatutory 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 - ANSWERS6
When one insurer transfers or cedes a portion of its risk to another insurer, this is called __ -
ANSWERSreinsurance
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 -
ANSWERSbid 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 - ANSWERSpersonal injury
costs
When an insurer intentionally issues a policy that differs from the application, ______ - ANSWERSinsurer
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 ____ - ANSWERSinsureds policy
The license term (# of yrs) for an insurance broker in Canada is___ - ANSWERSvaries province by
province
covered or not? ground water or rising of the water table, or surface water - ANSWERSno
The ongoing process whereby an automobile decreases in value as it ages is called __ -
ANSWERSdepreciation
An insurance brokers license can be terminated for __ - ANSWERSunethical conduct
The ______ policy insures blanket contractual, contingent employer's and owner's and contractor's
protective liability for retail stores, offices and other businesses - ANSWERScommercial general liability
The _____ department of an insurance company includes human resources, legal, management of
information systems. - ANSWERSadministration
In Ontario, the standard behaviour of insurance brokers is described in __ - ANSWERSRIB Act
insurance will only pay if - ANSWERSin the event of the happening of a certain risk or peril
RIBO has a committee that oversees complaints and investigations called __ - ANSWERScode of conduct
committee
ANSWERS 2024/2025
Risk - ANSWERSChance of Loss- where the object of insurance maybe exposed
Peril - ANSWERSCause of loss (wind, fire, water)
Indemnification - ANSWERSWhen insurer provides exact amount of loss, no more no less - provided in
money or another item of similar value
Covered losses - ANSWERSAccidental and future (not on purpose or in the past)
Alternatives to payment - ANSWERSRepair or replacement
three types of insurers - ANSWERSStock-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? - ANSWERSBroker- their client
agent-their company
Floaters cover property having a ____ - ANSWERSHigh 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 -
ANSWERS90 days
Brokers should hold unearned commissions ___ to refund their clients in the event the policy is cancelled
prior to its expiry date. - ANSWERSin trust
,Can you insure more than one vehicle on the same policy - ANSWERSno
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 - ANSWERSexams
____ insures the legal liability of medical professionals arising out of rendering or failure to render
professional services - ANSWERSmalpractice insurance
____is essential for contractors and others whose work may result in injury or damage when such work
is put to its intended use - ANSWERScompleted operations coverage
The most practical and common means of dealing with risk in Canada is - ANSWERSthe transfer of risk to
an insurance company
____ acknowledges changes to the terms in the insurance contract - ANSWERSboth endorsements and
riders
_____ are rules and regulations governing the rights and responsibilities of all parties to a contract of
insurance - ANSWERSstatutory 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 - ANSWERS6
When one insurer transfers or cedes a portion of its risk to another insurer, this is called __ -
ANSWERSreinsurance
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 -
ANSWERSbid 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 - ANSWERSpersonal injury
costs
When an insurer intentionally issues a policy that differs from the application, ______ - ANSWERSinsurer
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 ____ - ANSWERSinsureds policy
The license term (# of yrs) for an insurance broker in Canada is___ - ANSWERSvaries province by
province
covered or not? ground water or rising of the water table, or surface water - ANSWERSno
The ongoing process whereby an automobile decreases in value as it ages is called __ -
ANSWERSdepreciation
An insurance brokers license can be terminated for __ - ANSWERSunethical conduct
The ______ policy insures blanket contractual, contingent employer's and owner's and contractor's
protective liability for retail stores, offices and other businesses - ANSWERScommercial general liability
The _____ department of an insurance company includes human resources, legal, management of
information systems. - ANSWERSadministration
In Ontario, the standard behaviour of insurance brokers is described in __ - ANSWERSRIB Act
insurance will only pay if - ANSWERSin the event of the happening of a certain risk or peril
RIBO has a committee that oversees complaints and investigations called __ - ANSWERScode of conduct
committee
