RIBO PRACTICE EXAM 1 QUESTIONS
AND ANSWERS
Every RIBO brokerage must carry which limit of Errors and Omissions Insurance? -
Correct Answers -$3,000,000
Damages awarded for out-of-pocket items such as medical expenses are known as
which of the following? - Correct Answers -Special damages
Responsibilities the insureds and insurers have relating to losses (Statutory Conditions)
- Correct Answers -1. The insurer must pay the loss within a specified period of time.
2. The insurer has to notify the insured in writing of intent to repair.
3. The insured must take reasonable steps to prevent further damage.
4. The insured must deliver the proof of loss as soon as practicable.
What is insured under boiler and machinery (Equipment Breakdown Insurance)? -
Correct Answers -1. Computers and communication equipment
2. Boilers
3. Air conditioning equipment
Who does the mortgage clause protect? - Correct Answers -the mortgagee
Many factors are considered in determining the premium for travel health insurance.
What is UNLIKELY to affect the premium? - Correct Answers -The mode of
transportation and the common carrier used
Your client, a professional football player, is planning a trip to Mexico that includes a
scuba diving adventure. Which coverage limitation should be discussed with him? -
Correct Answers -Scuba diving may be considered a high-risk activity and excluded, but
some insurers may offer this coverage for additional premium.
Which situation(s) will typically limit coverage or cause a claim to be denied by many
travel health insurance providers? - Correct Answers -1. The insured fails to comply with
the assistance company's instructions.
2. The insured fails to call the third party administrator's hotline to notify the insurer of a
claim.
3. The insured refuses to be transferred home because the treatment is superb in the
hospital where being treated.
, What is the purpose of the Sue and Labour Clause in an insurance policy? - Correct
Answers -Requires the insured to do whatever is reasonably necessary to protect or
recover the insured property
Statutory Conditions in a Fire Policy are primarily to protect the rights of ... - Correct
Answers -Both the insured and the insurer
When collecting a premium deposit, an agent/broker is required to ... - Correct Answers
-Place the deposit in a trust account
The law of large numbers ... - Correct Answers -affects the reliance to be placed on a
given probability.
The statement is saying that when we have a lot of data or observations, it makes us
more confident in the probability of something happening. In simpler terms, it means
that the more times we see an event or collect data, the more we can trust the
probability we've calculated for that event. So, the "law of large numbers" tells us that
having more data helps us trust our probabilities more.
If information on the latest filed application to RIBO becomes obsolete, the member
must file a notice correcting the information - Correct Answers -within 30 days of the
change.
Misrepresentation by the insured in applying for insurance - Correct Answers -may void
the policy at the option of the insurer.
An insurer wishing to terminate an insurance policy may do so by - Correct Answers -
giving the insured 15 days' notice by registered mail and refunding the unearned
premium.
Every RIBO brokerage must carry a Fidelity Bond with an IBO endorsement to a limit of
- Correct Answers -$100,000.
In essence, a Fidelity Bond with an IBO endorsement is a specialized insurance policy
that ensures the brokerage firm is financially protected in case of fraudulent activities by
its employees or agents within the context of insurance-related operations.
In Quebec, Statutory Conditions are replaced by General Conditions. Which of the
following is TRUE about the General Conditions? - Correct Answers -All amounts of
premiums and losses are paid in Canadian currency.
Small Business Packages are great for covering - Correct Answers -realty offices.
Realty offices are central to the real estate industry, serving as intermediaries between
buyers and sellers and helping individuals and businesses navigate the complex world
of real estate transactions. These offices can be independent businesses or part of
larger real estate firms or franchises.
AND ANSWERS
Every RIBO brokerage must carry which limit of Errors and Omissions Insurance? -
Correct Answers -$3,000,000
Damages awarded for out-of-pocket items such as medical expenses are known as
which of the following? - Correct Answers -Special damages
Responsibilities the insureds and insurers have relating to losses (Statutory Conditions)
- Correct Answers -1. The insurer must pay the loss within a specified period of time.
2. The insurer has to notify the insured in writing of intent to repair.
3. The insured must take reasonable steps to prevent further damage.
4. The insured must deliver the proof of loss as soon as practicable.
What is insured under boiler and machinery (Equipment Breakdown Insurance)? -
Correct Answers -1. Computers and communication equipment
2. Boilers
3. Air conditioning equipment
Who does the mortgage clause protect? - Correct Answers -the mortgagee
Many factors are considered in determining the premium for travel health insurance.
What is UNLIKELY to affect the premium? - Correct Answers -The mode of
transportation and the common carrier used
Your client, a professional football player, is planning a trip to Mexico that includes a
scuba diving adventure. Which coverage limitation should be discussed with him? -
Correct Answers -Scuba diving may be considered a high-risk activity and excluded, but
some insurers may offer this coverage for additional premium.
Which situation(s) will typically limit coverage or cause a claim to be denied by many
travel health insurance providers? - Correct Answers -1. The insured fails to comply with
the assistance company's instructions.
2. The insured fails to call the third party administrator's hotline to notify the insurer of a
claim.
3. The insured refuses to be transferred home because the treatment is superb in the
hospital where being treated.
, What is the purpose of the Sue and Labour Clause in an insurance policy? - Correct
Answers -Requires the insured to do whatever is reasonably necessary to protect or
recover the insured property
Statutory Conditions in a Fire Policy are primarily to protect the rights of ... - Correct
Answers -Both the insured and the insurer
When collecting a premium deposit, an agent/broker is required to ... - Correct Answers
-Place the deposit in a trust account
The law of large numbers ... - Correct Answers -affects the reliance to be placed on a
given probability.
The statement is saying that when we have a lot of data or observations, it makes us
more confident in the probability of something happening. In simpler terms, it means
that the more times we see an event or collect data, the more we can trust the
probability we've calculated for that event. So, the "law of large numbers" tells us that
having more data helps us trust our probabilities more.
If information on the latest filed application to RIBO becomes obsolete, the member
must file a notice correcting the information - Correct Answers -within 30 days of the
change.
Misrepresentation by the insured in applying for insurance - Correct Answers -may void
the policy at the option of the insurer.
An insurer wishing to terminate an insurance policy may do so by - Correct Answers -
giving the insured 15 days' notice by registered mail and refunding the unearned
premium.
Every RIBO brokerage must carry a Fidelity Bond with an IBO endorsement to a limit of
- Correct Answers -$100,000.
In essence, a Fidelity Bond with an IBO endorsement is a specialized insurance policy
that ensures the brokerage firm is financially protected in case of fraudulent activities by
its employees or agents within the context of insurance-related operations.
In Quebec, Statutory Conditions are replaced by General Conditions. Which of the
following is TRUE about the General Conditions? - Correct Answers -All amounts of
premiums and losses are paid in Canadian currency.
Small Business Packages are great for covering - Correct Answers -realty offices.
Realty offices are central to the real estate industry, serving as intermediaries between
buyers and sellers and helping individuals and businesses navigate the complex world
of real estate transactions. These offices can be independent businesses or part of
larger real estate firms or franchises.
