RIBO LEVEL 1 PRACTICE EXAM
QUESTIONS WITH COMPETE
SOLUTIONS
Compulsory Automobile Insurance Schemes - Correct Answers -Operated by Alberta,
Quebec, and Saskatchewan governments.
Ordinary Negligence - Correct Answers -Failure to do what a reasonable person would
do in a situation.
Broker Responsibility - Correct Answers -Binding acceptable classes of business,
assisting in loss adjustment.
Legal Elements of Insurance Contract - Correct Answers -Include utmost good faith,
offer and acceptance, consideration.
Physical Hazard - Correct Answers -Example: Slippery floors, not financial problems or
poor reputation.
Insurance Definition - Correct Answers -Described as sharing losses among many, not
making good financial loss.
Reinsurance False Statement - Correct Answers -Reinsurance is not typically arranged
by the broker.
Excluded Property - Correct Answers -Jewellery, furs, and business property are
excluded from Homeowner Policy fire damage coverage.
OHIP Coverage - Correct Answers -OHIP reimburses emergency medical expenses
outside Ontario under specific conditions.
Pre-Existing Condition - Correct Answers -A health issue existing before the travel
health insurance policy's effective date.
Delayed Departure - Correct Answers -A delay due to the policyholder's voluntary
decision to extend their trip.
, Unstable Condition - Correct Answers -A sickness or injury necessitating medical
treatment post-departure.
Unenforceable Insurance Contract - Correct Answers -Valid reason does not include
premium not paid within 30 days.
Legal Status for Contract - Correct Answers -Only entities with legal status can enter a
valid contract.
Subrogation Definition - Correct Answers -Legal process to recover funds from party
causing loss.
Principle of Indemnity - Correct Answers -Intent to put insured in same financial position
post-loss.
Peril Definition - Correct Answers -Defined as the cause of a loss, not just a chance of
loss.
Insurer Policy Issuance - Correct Answers -Insurer must notify insured of policy-
application differences.
Commercial Property Insurance Rate Factors - Correct Answers -Factors include
construction, business type, fire protection.
Broker Misconduct - Correct Answers -Misconduct includes using undue influence for
policy sales.
Insurable Interest in Automobile - Correct Answers -Owner, lessee, lienholder, and
authorized driver have interest.
Automobile Policy Endorsements - Correct Answers -Endorsements must be approved
by Ontario's regulatory authority.
General Insurance Types - Correct Answers -Life insurance does not belong under
general insurance.
Insurance Applications - Correct Answers -Provide details for risk assessment, not
outdated or impossible to obtain.
Parties in Insurance Policy - Correct Answers -First party is insurer, second party is
insured.
RIBO Code of Conduct - Correct Answers -Members must disclose fees, maintain
errors and omissions insurance.
QUESTIONS WITH COMPETE
SOLUTIONS
Compulsory Automobile Insurance Schemes - Correct Answers -Operated by Alberta,
Quebec, and Saskatchewan governments.
Ordinary Negligence - Correct Answers -Failure to do what a reasonable person would
do in a situation.
Broker Responsibility - Correct Answers -Binding acceptable classes of business,
assisting in loss adjustment.
Legal Elements of Insurance Contract - Correct Answers -Include utmost good faith,
offer and acceptance, consideration.
Physical Hazard - Correct Answers -Example: Slippery floors, not financial problems or
poor reputation.
Insurance Definition - Correct Answers -Described as sharing losses among many, not
making good financial loss.
Reinsurance False Statement - Correct Answers -Reinsurance is not typically arranged
by the broker.
Excluded Property - Correct Answers -Jewellery, furs, and business property are
excluded from Homeowner Policy fire damage coverage.
OHIP Coverage - Correct Answers -OHIP reimburses emergency medical expenses
outside Ontario under specific conditions.
Pre-Existing Condition - Correct Answers -A health issue existing before the travel
health insurance policy's effective date.
Delayed Departure - Correct Answers -A delay due to the policyholder's voluntary
decision to extend their trip.
, Unstable Condition - Correct Answers -A sickness or injury necessitating medical
treatment post-departure.
Unenforceable Insurance Contract - Correct Answers -Valid reason does not include
premium not paid within 30 days.
Legal Status for Contract - Correct Answers -Only entities with legal status can enter a
valid contract.
Subrogation Definition - Correct Answers -Legal process to recover funds from party
causing loss.
Principle of Indemnity - Correct Answers -Intent to put insured in same financial position
post-loss.
Peril Definition - Correct Answers -Defined as the cause of a loss, not just a chance of
loss.
Insurer Policy Issuance - Correct Answers -Insurer must notify insured of policy-
application differences.
Commercial Property Insurance Rate Factors - Correct Answers -Factors include
construction, business type, fire protection.
Broker Misconduct - Correct Answers -Misconduct includes using undue influence for
policy sales.
Insurable Interest in Automobile - Correct Answers -Owner, lessee, lienholder, and
authorized driver have interest.
Automobile Policy Endorsements - Correct Answers -Endorsements must be approved
by Ontario's regulatory authority.
General Insurance Types - Correct Answers -Life insurance does not belong under
general insurance.
Insurance Applications - Correct Answers -Provide details for risk assessment, not
outdated or impossible to obtain.
Parties in Insurance Policy - Correct Answers -First party is insurer, second party is
insured.
RIBO Code of Conduct - Correct Answers -Members must disclose fees, maintain
errors and omissions insurance.
