BB PRACTICE TEST #2 RIBO
QUESTIONS AND ANSWERS
As a broker holding a restricted license you are not able to:
a) Sell insurance policies on behalf of more than one insurer
b) Open and operate a trust account
c) Counsel Potential clients on the insurance choices available
d) Bind coverage - Correct Answers -b
Rules and agreements concerning binding insurance coverage by brokers are:
a) Laid out in the Insurance Act of Ontario
b) Set by RIBO and are uniform and apply to every insurance broker firm in Ontario
c) Set and agreed upon between each insurance company and the broker office
d) Enforced by the Department of Insurance - Correct Answers -c
When a new broker is issued a registration certificate restricted to acting under
supervision, he/she may:
a) Be the designated individual responsible to RIBO for insurance matters in the
brokerage office
b) Deal directly with the public with regards to soliciting, negotiation, procuring or
making of any contract or insurance on behalf of insurers
c) Establish and set up an insurance brokerage office, providing arrangements are
made for the insurance company to countersign all policies
d) Set up and arrange a trust account - Correct Answers -b
No insurer shall use a form of application, policy, endorsement or renewal or
continuation certificate in respect to automobile insurance other than:
a) A form created by FSCO
b) A form published by RIBO
c) A form approved by the superintendent
d) A form approved by a Lieutenant Governor - Correct Answers –c
As per section 14.7 of regulation 991 (RIB Act), "a member shall not act as insurance
broker in accordance with the code of conduct"
, a) by acting as an insurance agent
b) In a manner consistent with the code
c) By jeopardizing the member's integrity, independence or competence
d) With courtesy and good faith - Correct Answers -c
As an insurance broker "restricted to act under supervision"
a) You may sell and solicit insurance and provide consultation to the general public only
within the community where your office is located
b) You may solicit insurance only from Individuals who call to or visit your office
c) You may not act as a sole proprietor, control trust funds, or act as a designated
individual
d) You may control a trust account under the supervision of the designated individual -
Correct Answers -c
If you are employed as a general insurance broker, you are required to be RIBO
licensed if you:
a) Are a receptionist and you refer clients to a producer
b) Are filing claims information, policy declarations and endorsement forms
c) collect and receipt insurance
d) Discuss with the general public their insurance needs - Correct Answers -d
A member who places insurance with an insurer unlicensed to trade insurance in
Ontario must;
a) Arrange for the insurer to be licensed before the coverage is placed
b) Ensure no additional taxes are charged to the expense of the insured
c) 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
d) Obtain written guarantees from the insurer that they will abide by the legal
requirements under the Insurance Act of the province - Correct Answers -c
An insurance broker:
a) Acts in any manner in soliciting, negotiating, or procuring the making of any contract
of insurance or reinsurance
b) Does not provide risk management
c) Holds his/her employees out as insurance consultants
d) Only advises - Correct Answers -a
The amount of Error and Omission and Fidelity insurance every member must maintain
is:
a) $200,000 & $500,000
QUESTIONS AND ANSWERS
As a broker holding a restricted license you are not able to:
a) Sell insurance policies on behalf of more than one insurer
b) Open and operate a trust account
c) Counsel Potential clients on the insurance choices available
d) Bind coverage - Correct Answers -b
Rules and agreements concerning binding insurance coverage by brokers are:
a) Laid out in the Insurance Act of Ontario
b) Set by RIBO and are uniform and apply to every insurance broker firm in Ontario
c) Set and agreed upon between each insurance company and the broker office
d) Enforced by the Department of Insurance - Correct Answers -c
When a new broker is issued a registration certificate restricted to acting under
supervision, he/she may:
a) Be the designated individual responsible to RIBO for insurance matters in the
brokerage office
b) Deal directly with the public with regards to soliciting, negotiation, procuring or
making of any contract or insurance on behalf of insurers
c) Establish and set up an insurance brokerage office, providing arrangements are
made for the insurance company to countersign all policies
d) Set up and arrange a trust account - Correct Answers -b
No insurer shall use a form of application, policy, endorsement or renewal or
continuation certificate in respect to automobile insurance other than:
a) A form created by FSCO
b) A form published by RIBO
c) A form approved by the superintendent
d) A form approved by a Lieutenant Governor - Correct Answers –c
As per section 14.7 of regulation 991 (RIB Act), "a member shall not act as insurance
broker in accordance with the code of conduct"
, a) by acting as an insurance agent
b) In a manner consistent with the code
c) By jeopardizing the member's integrity, independence or competence
d) With courtesy and good faith - Correct Answers -c
As an insurance broker "restricted to act under supervision"
a) You may sell and solicit insurance and provide consultation to the general public only
within the community where your office is located
b) You may solicit insurance only from Individuals who call to or visit your office
c) You may not act as a sole proprietor, control trust funds, or act as a designated
individual
d) You may control a trust account under the supervision of the designated individual -
Correct Answers -c
If you are employed as a general insurance broker, you are required to be RIBO
licensed if you:
a) Are a receptionist and you refer clients to a producer
b) Are filing claims information, policy declarations and endorsement forms
c) collect and receipt insurance
d) Discuss with the general public their insurance needs - Correct Answers -d
A member who places insurance with an insurer unlicensed to trade insurance in
Ontario must;
a) Arrange for the insurer to be licensed before the coverage is placed
b) Ensure no additional taxes are charged to the expense of the insured
c) 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
d) Obtain written guarantees from the insurer that they will abide by the legal
requirements under the Insurance Act of the province - Correct Answers -c
An insurance broker:
a) Acts in any manner in soliciting, negotiating, or procuring the making of any contract
of insurance or reinsurance
b) Does not provide risk management
c) Holds his/her employees out as insurance consultants
d) Only advises - Correct Answers -a
The amount of Error and Omission and Fidelity insurance every member must maintain
is:
a) $200,000 & $500,000
