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RIBO TEST #3 HOME INSURANCE
Questions and Correct Answers
In the Homeowners Comprehensive Policy, there are Extensions of
Coverage provided. Which of the following extensions increase the
amount of insurance?
a. Tear Out
b. Moving to Another Home Incorrect
c. Arson Conviction Reward
d. Lock Replacement Ans: Arson Conviction Reward
Which of the following statements is CORRECT about the Highway
Victims Indemnity Fund? Ans: It will not pay if the claimant is
totally responsible for causing the accident.
To cover costs for a business to lease a new location to continue
business after an insured loss, the business will require which of
the following?
a. Profits coverage
b. Extra Expense coverage
c. Extended Business Profit endorsement Incorrect
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d. Gross Earnings coverage Ans: Extra Expense coverage
Your insured owns two secondary residences on the same
property and rents one out for $500 per month. A windstorm
totally destroys the rental residence and it will take five months to
rebuild the dwelling. The Secondary Policy covers the building for
$100,000 subject to a $500 deductible. How much would the
insured collect under the Rental Value section of the Secondary
Policy in addition to the total loss of the dwelling?
a. $2,500
b. $2,000 Incorrect
c. Nothing, as the Rental Value section is included in the policy
limit
d. $500 Ans: Nothing, as the Rental Value section is included in
the policy limit
Common law?
a. It is the expressed will of the common people governing
relationships among all members of society regardless of their
status.
b. It is a body of well-defined legal principles set out in thousands
of court decisions over hundreds of years.
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c. It is the written law upon which judges make their decisions
without being bound by what other judges have done in the past.
Incorrect
d. It is a written or codified law in the form of acts or statutes
created by acts of the federal and provincial legislatures. Ans: It is
a body of well-defined legal principles set out in thousands of
court decisions over hundreds of years.
An independent agent or broker must maintain a trust account
a. into which all commission amounts are transferred.
b. from which all business expenses are paid.
c. from which net premiums are paid to insurers.
d. into which amounts are transferred to meet emergencies.
Incorrect
Feedback Ans: from which net premiums are paid to insurers.
In Section 2 Liability Coverage of the Homeowners Comprehensive
Policy, coverage is provided for Voluntary Payment for Damage to
Property in which of the following situations?
Select one:
© 2025 All rights reserved
RIBO TEST #3 HOME INSURANCE
Questions and Correct Answers
In the Homeowners Comprehensive Policy, there are Extensions of
Coverage provided. Which of the following extensions increase the
amount of insurance?
a. Tear Out
b. Moving to Another Home Incorrect
c. Arson Conviction Reward
d. Lock Replacement Ans: Arson Conviction Reward
Which of the following statements is CORRECT about the Highway
Victims Indemnity Fund? Ans: It will not pay if the claimant is
totally responsible for causing the accident.
To cover costs for a business to lease a new location to continue
business after an insured loss, the business will require which of
the following?
a. Profits coverage
b. Extra Expense coverage
c. Extended Business Profit endorsement Incorrect
© 2025 All rights reserved
, 2 | Page
d. Gross Earnings coverage Ans: Extra Expense coverage
Your insured owns two secondary residences on the same
property and rents one out for $500 per month. A windstorm
totally destroys the rental residence and it will take five months to
rebuild the dwelling. The Secondary Policy covers the building for
$100,000 subject to a $500 deductible. How much would the
insured collect under the Rental Value section of the Secondary
Policy in addition to the total loss of the dwelling?
a. $2,500
b. $2,000 Incorrect
c. Nothing, as the Rental Value section is included in the policy
limit
d. $500 Ans: Nothing, as the Rental Value section is included in
the policy limit
Common law?
a. It is the expressed will of the common people governing
relationships among all members of society regardless of their
status.
b. It is a body of well-defined legal principles set out in thousands
of court decisions over hundreds of years.
© 2025 All rights reserved
, 3 | Page
c. It is the written law upon which judges make their decisions
without being bound by what other judges have done in the past.
Incorrect
d. It is a written or codified law in the form of acts or statutes
created by acts of the federal and provincial legislatures. Ans: It is
a body of well-defined legal principles set out in thousands of
court decisions over hundreds of years.
An independent agent or broker must maintain a trust account
a. into which all commission amounts are transferred.
b. from which all business expenses are paid.
c. from which net premiums are paid to insurers.
d. into which amounts are transferred to meet emergencies.
Incorrect
Feedback Ans: from which net premiums are paid to insurers.
In Section 2 Liability Coverage of the Homeowners Comprehensive
Policy, coverage is provided for Voluntary Payment for Damage to
Property in which of the following situations?
Select one:
© 2025 All rights reserved
