RIBO 2
Which one of the following events would be considered a robbery loss? – answer
a.Money stolen from a custodian by threat of violence even though no weapon is used.
b.Money stolen during a burglary.
c.Theft of money by an employee.
d.Disappearance of goods from the premises.
A tenant in a high risk apartment negligently starts a grease fire and causes sever
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? –
answer a.Voluntary property damage (Coverage G).
b.Not covered.
c.Personal liability (Coverage E).
d.Loss assessment (Coverage I).
Your insured has a Tenants Comprehensive Policy through your brokerage. He has
signed 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 contents. It
is established that the landlord was responsible for the fire. Which of the following
statements is correct regarding coverage under the policy? - answera.The insured has
violated his/her policy by waiving the insurer's right of recovery.
b.The insurer would pay the loss but would be unable to subrogate.
c.The insurer would pay only 50% of the loss.
d.The insurer would pay the loss and subrogate since the insurer had not waived its
rights.
Which one of the following is a possible affect of a co-insurance clause on the
settlement of a loss? - answera.It may increase the amount to be paid by the insurer.
b.It may affect the third party in a liability claim.
c.It may decrease the amount to be paid by the insurer.
d.It may affect the insured's personal liability coverages.
Your clients inquire if the Liability section of their Tenants comprehensive policy would
cover damage amounting to $500 to property they had rented from a specialty firm. The
property consisted of furniture and supplies which fell off a truck while they were
unloading it for a reception at their home. What would be your reply? - answera.The
voluntary property damage coverage applies, but it is limited to $250.
b.The damage would covered subject to the deductible.
c.There is no coverage.
d.Coverage would depend whether or not they were legally liable.
, A building worth $100,000 is insured for $60,000 under a policy with an 80% co-
insurance clause. Fire damages the building to the extent of 90,000. How much would
the insurer pay? - answera.$48,000
b.$50,000
c.$60,000
d.$67,500
What is the purpose of a contract between an insurer and an insurance broker
(company/broker agreement)? - answera.To satisfy the requirements of the department
of insurance.
b.To formalize in writing the authority of the broker and the responsibility of each party.
c.To authorized the broker to operate a trust account
d.To meet the requirements of RIBO.
A dwelling valued at $500 000 is owned and insured by three persons. The first person
has 50% invested. The second and third persons each have a 25% interest. The first
person resides in the house. It is insured for $400,000. The building is demolished by a
tornado. How much would the second person receive from the insurers? - answera.
$100,000
b.$125,000
c.$80,000
d.$60,000
Which one of the following kinds of loss or damage is covered under the condominium
unit owners comprehensive policy? - answera.Vandalism or malicious acts or glass
breakage occurring while the unit is vacant.
b.Migratory birds flying into and breaking picture windows in a unit.
c.Smoke from agricultural smudging or industrial operations.
d.Repeated seepage from an air conditioning system.
Which one of the following statements best defines a mortgagee? - answera.It is the
one to whom the money is owed.
b.It is the one who owes the money.
c.It is the mortgage broker who introduced the insured to the lender.
d.It is the document which indicates the amount of money which is owed.
Your client has a $200,000 homeowners comprehensive policy. Due to a fire which
causes substantial damage to the home, the family must rent another house for three
months at a rent of $1,000 per month.Assuming your client's mortgage payments are
$900 per month, which one of the following amounts will his/her homeowners policy pay
towards the cost of renting the temporary house (ignore application of deductible)? -
answera.$5,700
b.$300
c.$3,000
d.$2,400
Which one of the following events would be considered a robbery loss? – answer
a.Money stolen from a custodian by threat of violence even though no weapon is used.
b.Money stolen during a burglary.
c.Theft of money by an employee.
d.Disappearance of goods from the premises.
A tenant in a high risk apartment negligently starts a grease fire and causes sever
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? –
answer a.Voluntary property damage (Coverage G).
b.Not covered.
c.Personal liability (Coverage E).
d.Loss assessment (Coverage I).
Your insured has a Tenants Comprehensive Policy through your brokerage. He has
signed 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 contents. It
is established that the landlord was responsible for the fire. Which of the following
statements is correct regarding coverage under the policy? - answera.The insured has
violated his/her policy by waiving the insurer's right of recovery.
b.The insurer would pay the loss but would be unable to subrogate.
c.The insurer would pay only 50% of the loss.
d.The insurer would pay the loss and subrogate since the insurer had not waived its
rights.
Which one of the following is a possible affect of a co-insurance clause on the
settlement of a loss? - answera.It may increase the amount to be paid by the insurer.
b.It may affect the third party in a liability claim.
c.It may decrease the amount to be paid by the insurer.
d.It may affect the insured's personal liability coverages.
Your clients inquire if the Liability section of their Tenants comprehensive policy would
cover damage amounting to $500 to property they had rented from a specialty firm. The
property consisted of furniture and supplies which fell off a truck while they were
unloading it for a reception at their home. What would be your reply? - answera.The
voluntary property damage coverage applies, but it is limited to $250.
b.The damage would covered subject to the deductible.
c.There is no coverage.
d.Coverage would depend whether or not they were legally liable.
, A building worth $100,000 is insured for $60,000 under a policy with an 80% co-
insurance clause. Fire damages the building to the extent of 90,000. How much would
the insurer pay? - answera.$48,000
b.$50,000
c.$60,000
d.$67,500
What is the purpose of a contract between an insurer and an insurance broker
(company/broker agreement)? - answera.To satisfy the requirements of the department
of insurance.
b.To formalize in writing the authority of the broker and the responsibility of each party.
c.To authorized the broker to operate a trust account
d.To meet the requirements of RIBO.
A dwelling valued at $500 000 is owned and insured by three persons. The first person
has 50% invested. The second and third persons each have a 25% interest. The first
person resides in the house. It is insured for $400,000. The building is demolished by a
tornado. How much would the second person receive from the insurers? - answera.
$100,000
b.$125,000
c.$80,000
d.$60,000
Which one of the following kinds of loss or damage is covered under the condominium
unit owners comprehensive policy? - answera.Vandalism or malicious acts or glass
breakage occurring while the unit is vacant.
b.Migratory birds flying into and breaking picture windows in a unit.
c.Smoke from agricultural smudging or industrial operations.
d.Repeated seepage from an air conditioning system.
Which one of the following statements best defines a mortgagee? - answera.It is the
one to whom the money is owed.
b.It is the one who owes the money.
c.It is the mortgage broker who introduced the insured to the lender.
d.It is the document which indicates the amount of money which is owed.
Your client has a $200,000 homeowners comprehensive policy. Due to a fire which
causes substantial damage to the home, the family must rent another house for three
months at a rent of $1,000 per month.Assuming your client's mortgage payments are
$900 per month, which one of the following amounts will his/her homeowners policy pay
towards the cost of renting the temporary house (ignore application of deductible)? -
answera.$5,700
b.$300
c.$3,000
d.$2,400
