RIBO PRACTICE EXAM 2 | COMPLETE QUESTIONS WITH 100%
RATED CORRECT ANSWERS | GRADED A+| 2025 LATEST UPDATED
The RIBO Code of Conduct is stated in Ontario Regulation 991, Section 14. Indicate which one
(1) of the following provisions is NOT contained in the Code. - (answers)To maintain a trust
account for all trust money received
A Commercial Crime Insurance Policy - (answers)allows the selection of coverages from a
menu.
A Trust Position Report must be filed with RIBO at which of the following time periods? -
(answers)Twice a year
Provincial regulations regarding an agent's handling of premium funds stipulates that the
business must have - (answers)both an operating account and a trust account.
With respect to salvage, - (answers)disposition can be negotiated between the insured and the
insurer.
Describe subrogation - (answers)It is the legal process by which an insurer who has paid a loss
pursues any rights of recovery against a responsible third party.
The Rib Act grants power to the Discipline Committee of RIBO 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 is NOT defined as "misconduct"? - (answers)Using an
illustration, circulation, or memorandum to represent the terms, benefits, or advantages of any
policy or contract of insurance
Describe actual cash value (ACV)? - (answers)The replacement cost at the time of loss less
depreciation
, What is pure premium? - (answers)The premium required to meet the losses that occur
The Pair and Set Clause in an insurance policy means - (answers)settlement of a loss with respect
to an article that is part of a set shall be based on a reasonable proportion of the value of the set,
but not the entire set.
A Subscription Policy differs from other policies in that - (answers)more than one insurer
participates in a policy prepared by the lead company.
Describe an agent? - (answers)An agent represents one company, either as an independent
business person or as an employee.
A Commercial General Liability Policy covers: - (answers)1. Completed operations
2. premises and operations
3. products
A fire that is intentionally set and burning in its intended place would be classified as what? -
(answers)A friendly fire
What is common law? - (answers)It is a body of well-defined legal principles set out in
thousands of court decisions over hundreds of years.
The Extended Coverage Endorsement covers the losses of which additional perils? -
(answers)Windstorm, hail, explosion, civil commotion, riot, aircraft damage, vehicle damage,
smoke damage
An insurance broker whose registration is restricted to acting under supervision may NOT do
what? - (answers)Deposit insurance premiums in their own trust bank account
Statutory Conditions and General Conditions are similar in intent. - (answers)True
RATED CORRECT ANSWERS | GRADED A+| 2025 LATEST UPDATED
The RIBO Code of Conduct is stated in Ontario Regulation 991, Section 14. Indicate which one
(1) of the following provisions is NOT contained in the Code. - (answers)To maintain a trust
account for all trust money received
A Commercial Crime Insurance Policy - (answers)allows the selection of coverages from a
menu.
A Trust Position Report must be filed with RIBO at which of the following time periods? -
(answers)Twice a year
Provincial regulations regarding an agent's handling of premium funds stipulates that the
business must have - (answers)both an operating account and a trust account.
With respect to salvage, - (answers)disposition can be negotiated between the insured and the
insurer.
Describe subrogation - (answers)It is the legal process by which an insurer who has paid a loss
pursues any rights of recovery against a responsible third party.
The Rib Act grants power to the Discipline Committee of RIBO 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 is NOT defined as "misconduct"? - (answers)Using an
illustration, circulation, or memorandum to represent the terms, benefits, or advantages of any
policy or contract of insurance
Describe actual cash value (ACV)? - (answers)The replacement cost at the time of loss less
depreciation
, What is pure premium? - (answers)The premium required to meet the losses that occur
The Pair and Set Clause in an insurance policy means - (answers)settlement of a loss with respect
to an article that is part of a set shall be based on a reasonable proportion of the value of the set,
but not the entire set.
A Subscription Policy differs from other policies in that - (answers)more than one insurer
participates in a policy prepared by the lead company.
Describe an agent? - (answers)An agent represents one company, either as an independent
business person or as an employee.
A Commercial General Liability Policy covers: - (answers)1. Completed operations
2. premises and operations
3. products
A fire that is intentionally set and burning in its intended place would be classified as what? -
(answers)A friendly fire
What is common law? - (answers)It is a body of well-defined legal principles set out in
thousands of court decisions over hundreds of years.
The Extended Coverage Endorsement covers the losses of which additional perils? -
(answers)Windstorm, hail, explosion, civil commotion, riot, aircraft damage, vehicle damage,
smoke damage
An insurance broker whose registration is restricted to acting under supervision may NOT do
what? - (answers)Deposit insurance premiums in their own trust bank account
Statutory Conditions and General Conditions are similar in intent. - (answers)True
