RIBO Level 1 Exam
Indemnify - ANS-The action of compensating an insured following a loss under the
insurance policy.
Risk - ANS-The chance of loss;
or an object or activity that is insured (about to be insured)
Peril - ANS-An event that may cause a loss to occur
Object of Insurance - ANS-The item that is insured or covered in an insurance policy
Indemnity - ANS-to put you back in the same financial position (just prior to loss) NO
BETTER NO WORSE
Insured / Policy holder - ANS-The person who purchases an insurance policy
Noted as First Party
Insurer - ANS-Insurance company who issued the insurance policy and who
compensates/indemnifies a policy holder in the event of a loss
Noted as second party
Premium - ANS-The sum of money paid by a person to an insurance company in
exchange for an insurance policy
RIBO - Registered Insurance Brokers of Ontario - ANS-A Self-governing, self-funded
organization of general insurance brokers in Ontario
RIBO regulates the
- Licensing;
- Professional competence;
- Ethical conduct
- Insurance-related financial obligations
of all independent general insurance brokers in ON through the RIB Act
General Insurance - ANS-- Also referred to as Property and Casualty (P&C)
- Anything other than Life or Health Insurance
Property risk - ANS-Financial loss occurs when owned property is lost or damaged
, Liability risk - ANS-When a person's negligent actions result in injury to others or
damage to another's property
Negligence - ANS-is what a reasonable and prudence person would do or not do in a
similar situation
Speculative risk - ANS-This is the possibility of either financial loss / gain
--> this is NOT insurable
Pure risk - ANS-The chance of financial loss with no chance of financial gain.
--> this type of risk IS insurable
Hazards - ANS-is a condition that may cause a peril to occur or make the loss more
severe.
There are 2 types of hazard: Physical hazard
Moral hazard
Physical hazard - ANS-OBSERVABLE condition relating to the object of insurance
Moral hazard - ANS-Subjective characteristics of an insured/applicant that increases the
likelihood of loss.
Proximate Cause - ANS-the immediate and effective cause of the loss
Dealing with Risk - ANS-1) Eliminating Risk: get rid of risk completely
(not practical)
2) Controlling Risk: taking measures to decrease the
chance of loss (more practical but not enough)
3) Retaining Risk: Self-insurance and Deductible
e.g. Canadian National Railways self insure
4) Transferring Risk: transferring a portion or all of your
risk to an insurer for a cost ($ premium)
Reinsurance - ANS-Insurance for insurance company
Capacity - ANS-the amount of coverage that an insurer ca reasonably assume
Indemnify - ANS-The action of compensating an insured following a loss under the
insurance policy.
Risk - ANS-The chance of loss;
or an object or activity that is insured (about to be insured)
Peril - ANS-An event that may cause a loss to occur
Object of Insurance - ANS-The item that is insured or covered in an insurance policy
Indemnity - ANS-to put you back in the same financial position (just prior to loss) NO
BETTER NO WORSE
Insured / Policy holder - ANS-The person who purchases an insurance policy
Noted as First Party
Insurer - ANS-Insurance company who issued the insurance policy and who
compensates/indemnifies a policy holder in the event of a loss
Noted as second party
Premium - ANS-The sum of money paid by a person to an insurance company in
exchange for an insurance policy
RIBO - Registered Insurance Brokers of Ontario - ANS-A Self-governing, self-funded
organization of general insurance brokers in Ontario
RIBO regulates the
- Licensing;
- Professional competence;
- Ethical conduct
- Insurance-related financial obligations
of all independent general insurance brokers in ON through the RIB Act
General Insurance - ANS-- Also referred to as Property and Casualty (P&C)
- Anything other than Life or Health Insurance
Property risk - ANS-Financial loss occurs when owned property is lost or damaged
, Liability risk - ANS-When a person's negligent actions result in injury to others or
damage to another's property
Negligence - ANS-is what a reasonable and prudence person would do or not do in a
similar situation
Speculative risk - ANS-This is the possibility of either financial loss / gain
--> this is NOT insurable
Pure risk - ANS-The chance of financial loss with no chance of financial gain.
--> this type of risk IS insurable
Hazards - ANS-is a condition that may cause a peril to occur or make the loss more
severe.
There are 2 types of hazard: Physical hazard
Moral hazard
Physical hazard - ANS-OBSERVABLE condition relating to the object of insurance
Moral hazard - ANS-Subjective characteristics of an insured/applicant that increases the
likelihood of loss.
Proximate Cause - ANS-the immediate and effective cause of the loss
Dealing with Risk - ANS-1) Eliminating Risk: get rid of risk completely
(not practical)
2) Controlling Risk: taking measures to decrease the
chance of loss (more practical but not enough)
3) Retaining Risk: Self-insurance and Deductible
e.g. Canadian National Railways self insure
4) Transferring Risk: transferring a portion or all of your
risk to an insurer for a cost ($ premium)
Reinsurance - ANS-Insurance for insurance company
Capacity - ANS-the amount of coverage that an insurer ca reasonably assume
