Ontario Insurance Broker Licensing
Exam (RIBO Level 1) Practice Questions
And Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A | Instant
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1. What is the primary role of an insurance broker in Ontario?
A. To represent the insurer only
B. To represent the insured only
C. To act as an intermediary representing the client while dealing
with insurers
D. To underwrite insurance policies
Answer: C
Rationale: Brokers are licensed to act in the best interest of the client while
placing business with insurers.
, 2. Which organization regulates insurance brokers in Ontario?
A. FSRA
B. RIBO
C. IBAO
D. OSFI
Answer: B
Rationale: The Registered Insurance Brokers of Ontario (RIBO) is the self-
regulatory body for brokers.
3. What is the legal concept requiring brokers to act with honesty and
loyalty toward clients?
A. Indemnity
B. Utmost good faith
C. Fiduciary duty
D. Subrogation
Answer: C
Rationale: Brokers owe a fiduciary duty, meaning they must place the
client’s interests ahead of their own.
4. Which insurance principle requires both parties to disclose all material
facts?
A. Proximate cause
, B. Indemnity
C. Contribution
D. Utmost good faith
Answer: D
Rationale: Utmost good faith obligates full and honest disclosure by both
insurer and insured.
5. A material fact is best described as information that:
A. Is written in the policy
B. Affects the premium only
C. Would influence an insurer’s decision to accept or rate the risk
D. Is requested on the application
Answer: C
Rationale: Material facts are those that would affect underwriting
decisions.
6. What happens if an insured fails to disclose a material fact?
A. Claim is automatically paid
B. Policy continues unchanged
C. Policy may be voided or claim denied
D. Only deductible applies
, Answer: C
Rationale: Non-disclosure of material facts can void coverage.
7. Which type of insurance protects against liability for bodily injury or
property damage to others?
A. Property insurance
B. Life insurance
C. Liability insurance
D. Accident insurance
Answer: C
Rationale: Liability insurance covers legal responsibility to third parties.
8. The principle of indemnity means:
A. Losses are shared
B. The insured is restored to the same financial position as before the
loss
C. Claims are paid immediately
D. All losses are insured
Answer: B
Rationale: Indemnity prevents profit from insurance.
Exam (RIBO Level 1) Practice Questions
And Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A | Instant
Download Pdf
1. What is the primary role of an insurance broker in Ontario?
A. To represent the insurer only
B. To represent the insured only
C. To act as an intermediary representing the client while dealing
with insurers
D. To underwrite insurance policies
Answer: C
Rationale: Brokers are licensed to act in the best interest of the client while
placing business with insurers.
, 2. Which organization regulates insurance brokers in Ontario?
A. FSRA
B. RIBO
C. IBAO
D. OSFI
Answer: B
Rationale: The Registered Insurance Brokers of Ontario (RIBO) is the self-
regulatory body for brokers.
3. What is the legal concept requiring brokers to act with honesty and
loyalty toward clients?
A. Indemnity
B. Utmost good faith
C. Fiduciary duty
D. Subrogation
Answer: C
Rationale: Brokers owe a fiduciary duty, meaning they must place the
client’s interests ahead of their own.
4. Which insurance principle requires both parties to disclose all material
facts?
A. Proximate cause
, B. Indemnity
C. Contribution
D. Utmost good faith
Answer: D
Rationale: Utmost good faith obligates full and honest disclosure by both
insurer and insured.
5. A material fact is best described as information that:
A. Is written in the policy
B. Affects the premium only
C. Would influence an insurer’s decision to accept or rate the risk
D. Is requested on the application
Answer: C
Rationale: Material facts are those that would affect underwriting
decisions.
6. What happens if an insured fails to disclose a material fact?
A. Claim is automatically paid
B. Policy continues unchanged
C. Policy may be voided or claim denied
D. Only deductible applies
, Answer: C
Rationale: Non-disclosure of material facts can void coverage.
7. Which type of insurance protects against liability for bodily injury or
property damage to others?
A. Property insurance
B. Life insurance
C. Liability insurance
D. Accident insurance
Answer: C
Rationale: Liability insurance covers legal responsibility to third parties.
8. The principle of indemnity means:
A. Losses are shared
B. The insured is restored to the same financial position as before the
loss
C. Claims are paid immediately
D. All losses are insured
Answer: B
Rationale: Indemnity prevents profit from insurance.
