RIBO EXAM QUESTIONS AND
ANSWERS
What are the five main sections of an insurance policy? - Correct Answers -1. Coverage
Summary
2. Insuring Agreements
3. Statutory Conditions
4. Policy Conditions
5. Signature Clause
Policy Conditions - Correct Answers -Provisions that state the rights and duties of the
insured or insurer.
Insuring agreements state - Correct Answers -1. Subject Matter of Insurance
2. Exclusions
3. Perils insured against
4. Circumstances where insured receives proceeds of insurance
Salvage - Correct Answers -Property saved from loss
Also the process of taking steps to reduce the amount of loss.
What are the special limitations for watercraft and motorized vechicles? - Correct
Answers --Covered for watercraft including their attachments equipped with outboard
motors of not more than 16HP in total
-Watercraft including their attachments equipped with any other type of motor of not
more than 50HP
-Non motorized watercraft not more than 26 feet in length.
-Self propelled lawn mowers, snow blowers, garden type tractors not more than 25HP
Secondary Residence Coverage for Dwelling Building *OPTIONAL* - Correct Answers
--There are optional extensions of coverage for the dwelling building, you may apply up
to 10% of the insurance on the dwelling to insure:
1. Building fixtures and fittings temp removed for repair or seasonal storage.
2. Detached private structures. If more than one the coverage will be divided in the
proportions that the value of each structure has to the value of all structures at the time
of loss.
,3. Fair rental value- if a dwelling or detached structure is unfit for occupancy insurance
will insure its fair rental value.
Secondary residence optional extensions of coverage - personal property - Correct
Answers -does not increase amount of insurance show, 10% of value of insurance can
be applied for:
1. Uninsured personal property of others while its on the portion of the house you
occupy
2. Your own personal property excluding watercraft while away from your home
anywhere in Canada or the US
3. Additional living expenses are covered
Special limits secondary dwellings - Correct Answers -Up to 2k on all books, tools, and
instruments pertaining to a business, profession, or occupation
-Up to 5k in all garden like tractors
-Up to 1k in all watercraft
Mortgagee - Correct Answers -Person who gives a mortgage to purchase real estate
Trailers are covered under - Correct Answers -Liability, accident benefits, uninsured
automobile
Material Fact - Correct Answers -A fact that would affect a contract of insurance enough
to influence an insurer's decision regarding whether to accept or reject the risk or the
premium to be set. Material facts must be disclosed by the applicant if asked about.
Misrepresentation - Correct Answers -Incorrect or missing information about a material
fact that is offered, or not, by an applicant or insured with or without the intent to
mislead.
Exposure - Correct Answers -The danger of loss, particularly fire, arising from what
happens to another risk close by.
Also the total amount the insurer could become liable for under a policy.
Quebec 1st, 2nd, 3rd - Correct Answers -1st: Principal
2nd: Intermediary
3rd: Insured
What conditions must exist for a contract? - Correct Answers -1. Agreement
(Offer&Acceptance)
2. Consideration
3. Genuine intent to form a contract
4. Legal capacity to contract
5. Legality of purpose
Which factors determine enforceability? - Correct Answers -Legality of Purpose
, Consideration
Capacity to contract
Replacement Value - Correct Answers -The current market value of the cost to replace
the lost or damaged insured property.
What are the 3 unique elements of an insurance contract? - Correct Answers -Insurable
interest, indemnity, utmost good faith
Proximate Cause - Correct Answers -The immediate and effective cause of the loss
which in a chain of circumstances leads naturally and directly to the loss
-Insured peril has to cause the loss.
-Like a domino effect
Ex.Fire
Remote Cause - Correct Answers -A cause which is not the proximate cause.
Ex. Smoking in the house
Immediate Cause - Correct Answers -The last link the chain of events is known as the
immediate cause.
Ex. The cigarette
Excess Insurance - Correct Answers -Insurance that does not participate until all other
similar insurance on the same subject is exhausted or until the loss exceeds a
previously agreed upon amount.
Statutory Conditions - Correct Answers -APPLY TO FIRE POLICIES. Special
prescribed and standardized conditions that the provincial insurance acts require to be
included in fire, automobile, and accident and sickness policies (Not included in
commercial general liability policies). The statutory conditions must be identified and
printed in every fire policy; however conditions will still govern the policy even in their
absence
Direct Compensation for Property Damage (DCPD) - Correct Answers -Covers damage
of an automobile to the extent that the insured is not at fault.
-Even though someone else caused the damage the insured person collects directly
from their insurer and not the person that caused the accident.
What are the minimum coverages required in Ontario? - Correct Answers -1. Liability
2. Accident Benefits
3. Direct compensation property damage
4. Uninsured Automobile
Minimum third party limits liability: 200k
What is rateable? - Correct Answers -1. Age, gender, marital status
2. Driving experience
ANSWERS
What are the five main sections of an insurance policy? - Correct Answers -1. Coverage
Summary
2. Insuring Agreements
3. Statutory Conditions
4. Policy Conditions
5. Signature Clause
Policy Conditions - Correct Answers -Provisions that state the rights and duties of the
insured or insurer.
Insuring agreements state - Correct Answers -1. Subject Matter of Insurance
2. Exclusions
3. Perils insured against
4. Circumstances where insured receives proceeds of insurance
Salvage - Correct Answers -Property saved from loss
Also the process of taking steps to reduce the amount of loss.
What are the special limitations for watercraft and motorized vechicles? - Correct
Answers --Covered for watercraft including their attachments equipped with outboard
motors of not more than 16HP in total
-Watercraft including their attachments equipped with any other type of motor of not
more than 50HP
-Non motorized watercraft not more than 26 feet in length.
-Self propelled lawn mowers, snow blowers, garden type tractors not more than 25HP
Secondary Residence Coverage for Dwelling Building *OPTIONAL* - Correct Answers
--There are optional extensions of coverage for the dwelling building, you may apply up
to 10% of the insurance on the dwelling to insure:
1. Building fixtures and fittings temp removed for repair or seasonal storage.
2. Detached private structures. If more than one the coverage will be divided in the
proportions that the value of each structure has to the value of all structures at the time
of loss.
,3. Fair rental value- if a dwelling or detached structure is unfit for occupancy insurance
will insure its fair rental value.
Secondary residence optional extensions of coverage - personal property - Correct
Answers -does not increase amount of insurance show, 10% of value of insurance can
be applied for:
1. Uninsured personal property of others while its on the portion of the house you
occupy
2. Your own personal property excluding watercraft while away from your home
anywhere in Canada or the US
3. Additional living expenses are covered
Special limits secondary dwellings - Correct Answers -Up to 2k on all books, tools, and
instruments pertaining to a business, profession, or occupation
-Up to 5k in all garden like tractors
-Up to 1k in all watercraft
Mortgagee - Correct Answers -Person who gives a mortgage to purchase real estate
Trailers are covered under - Correct Answers -Liability, accident benefits, uninsured
automobile
Material Fact - Correct Answers -A fact that would affect a contract of insurance enough
to influence an insurer's decision regarding whether to accept or reject the risk or the
premium to be set. Material facts must be disclosed by the applicant if asked about.
Misrepresentation - Correct Answers -Incorrect or missing information about a material
fact that is offered, or not, by an applicant or insured with or without the intent to
mislead.
Exposure - Correct Answers -The danger of loss, particularly fire, arising from what
happens to another risk close by.
Also the total amount the insurer could become liable for under a policy.
Quebec 1st, 2nd, 3rd - Correct Answers -1st: Principal
2nd: Intermediary
3rd: Insured
What conditions must exist for a contract? - Correct Answers -1. Agreement
(Offer&Acceptance)
2. Consideration
3. Genuine intent to form a contract
4. Legal capacity to contract
5. Legality of purpose
Which factors determine enforceability? - Correct Answers -Legality of Purpose
, Consideration
Capacity to contract
Replacement Value - Correct Answers -The current market value of the cost to replace
the lost or damaged insured property.
What are the 3 unique elements of an insurance contract? - Correct Answers -Insurable
interest, indemnity, utmost good faith
Proximate Cause - Correct Answers -The immediate and effective cause of the loss
which in a chain of circumstances leads naturally and directly to the loss
-Insured peril has to cause the loss.
-Like a domino effect
Ex.Fire
Remote Cause - Correct Answers -A cause which is not the proximate cause.
Ex. Smoking in the house
Immediate Cause - Correct Answers -The last link the chain of events is known as the
immediate cause.
Ex. The cigarette
Excess Insurance - Correct Answers -Insurance that does not participate until all other
similar insurance on the same subject is exhausted or until the loss exceeds a
previously agreed upon amount.
Statutory Conditions - Correct Answers -APPLY TO FIRE POLICIES. Special
prescribed and standardized conditions that the provincial insurance acts require to be
included in fire, automobile, and accident and sickness policies (Not included in
commercial general liability policies). The statutory conditions must be identified and
printed in every fire policy; however conditions will still govern the policy even in their
absence
Direct Compensation for Property Damage (DCPD) - Correct Answers -Covers damage
of an automobile to the extent that the insured is not at fault.
-Even though someone else caused the damage the insured person collects directly
from their insurer and not the person that caused the accident.
What are the minimum coverages required in Ontario? - Correct Answers -1. Liability
2. Accident Benefits
3. Direct compensation property damage
4. Uninsured Automobile
Minimum third party limits liability: 200k
What is rateable? - Correct Answers -1. Age, gender, marital status
2. Driving experience
