RIBO PRACTICE EXAM 2 QUESTIONS
AND ANSWERS
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. - Correct
Answers -To maintain a trust account for all trust money received
A Commercial Crime Insurance Policy - Correct 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? -
Correct Answers -Twice a year
Provincial regulations regarding an agent's handling of premium funds stipulates that
the business must have - Correct Answers -both an operating account and a trust
account.
With respect to salvage, - Correct Answers -disposition can be negotiated between the
insured and the insurer.
A client phones to tell you he has bought a high-end stereo system costing $5,000,
which has just been installed in his car. What should you tell him? - Correct Answers -
Please provide me with a copy of the invoice so I can have your OAP 1 Owner's Policy
endorsed to cover its full value.
A claim under a liability policy may be triggered by: - Correct Answers -a negligent act.
To what extent does A2 Loss Assessment coverage in the Comprehensive
Condominium Unit Owners Policy cover an assessment against a unit owner? - Correct
Answers -Any covered assessment that is valid under the corporation, insured by the
Unit Owners Policy, and to a limit of $10,000
Under a personal liability policy, premises that are covered typically include which of the
following? - Correct Answers -premises the insured is using as a temporary residence if
such premises are not owned.
, In the Condominium Comprehensive Policy, there are Extensions of Coverage
provided. Which of the following extensions increase the amount of insurance? - Correct
Answers -Arson Conviction Reward
Describe subrogation - Correct 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"? -
Correct 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)? - Correct Answers -The replacement cost at the time
of loss less depreciation
What is pure premium? - Correct Answers -The premium required to meet the losses
that occur
The Pair and Set Clause in an insurance policy means - Correct 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 - Correct Answers -more than
one insurer participates in a policy prepared by the lead company.
Describe an agent? - Correct Answers -An agent represents one company, either as an
independent business person or as an employee.
A Commercial General Liability Policy covers: - Correct 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? - Correct Answers -A friendly fire
What is common law? - Correct 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? -
Correct Answers -Windstorm, hail, explosion, civil commotion, riot, aircraft damage,
vehicle damage, smoke damage
AND ANSWERS
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. - Correct
Answers -To maintain a trust account for all trust money received
A Commercial Crime Insurance Policy - Correct 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? -
Correct Answers -Twice a year
Provincial regulations regarding an agent's handling of premium funds stipulates that
the business must have - Correct Answers -both an operating account and a trust
account.
With respect to salvage, - Correct Answers -disposition can be negotiated between the
insured and the insurer.
A client phones to tell you he has bought a high-end stereo system costing $5,000,
which has just been installed in his car. What should you tell him? - Correct Answers -
Please provide me with a copy of the invoice so I can have your OAP 1 Owner's Policy
endorsed to cover its full value.
A claim under a liability policy may be triggered by: - Correct Answers -a negligent act.
To what extent does A2 Loss Assessment coverage in the Comprehensive
Condominium Unit Owners Policy cover an assessment against a unit owner? - Correct
Answers -Any covered assessment that is valid under the corporation, insured by the
Unit Owners Policy, and to a limit of $10,000
Under a personal liability policy, premises that are covered typically include which of the
following? - Correct Answers -premises the insured is using as a temporary residence if
such premises are not owned.
, In the Condominium Comprehensive Policy, there are Extensions of Coverage
provided. Which of the following extensions increase the amount of insurance? - Correct
Answers -Arson Conviction Reward
Describe subrogation - Correct 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"? -
Correct 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)? - Correct Answers -The replacement cost at the time
of loss less depreciation
What is pure premium? - Correct Answers -The premium required to meet the losses
that occur
The Pair and Set Clause in an insurance policy means - Correct 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 - Correct Answers -more than
one insurer participates in a policy prepared by the lead company.
Describe an agent? - Correct Answers -An agent represents one company, either as an
independent business person or as an employee.
A Commercial General Liability Policy covers: - Correct 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? - Correct Answers -A friendly fire
What is common law? - Correct 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? -
Correct Answers -Windstorm, hail, explosion, civil commotion, riot, aircraft damage,
vehicle damage, smoke damage
