Week 3 RIBO Insurance Course
Practice Questions with Already
Solved Solutions 2026.
What is a main benefit of having an insurance application completed in writing and signed by
the applicant?
Select one:
a. Provides accurate documentation of the coverage requested and confirms the accuracy of the
information.
b. Is less costly for the insurer to underwrite written applications than oral applications
c. Allows the insured to get a premium discount of fifteen percent
d. Allows the insured to choose which questions to answer and which to leave blank - Answer
a. Provides accurate documentation of the coverage requested and confirms the accuracy of the
information. The benefit of a written application is that it provides accurate documentation of
what was requested, and indicates the intentions of the parties at the time the application was
made—particularly if the client signs it, as the signature attests to the accuracy of the
information.
What other types of supplemental applications might an intermediary add to a standard
application?
Select one:
a. Home business and oil tank
b. Overland water and criminal history
c. Rental supplements and pre-existing damage
d. Wood heat and sewer back up - Answer a. Home business and oil tank. In addition to the
introductory client profiles form, the intermediary may use other specific application forms for
wood heat, rental supplements, oil tanks, overland water, or business in the home.
What can result from an agent/broker's failure to advise insurers of all information material to a
risk during the application process?
Select one:
,d. The agent/broker may have to pay a fine to the insurer. - Answer b. The agent/broker may
be found liable for losses that may occur. Agents/brokers acting on behalf of insurance
companies and their clients have a duty to advise insurers of all the information material to the
risk.
Which national association is a main resource for and has a key initiative to create industry-
standard application forms?
Select one:
a. Financial Services Regulatory Association (FSRA)
b. Insurance Bureau of Canada (IBC)
c. Financial Services Regulatory Authority (FSRA)
d. Centre for Study of Insurance Operations/Centre D'Étude de la Pratique D'Assurance
(CSIO/CEPA) - Answer d. Centre for Study of Insurance Operations/Centre D'Étude de la
Pratique D'Assurance (CSIO/CEPA). A number of different application forms are in use. The CSIO
is a national association of property and casualty insurers and independent insurance brokers
working together to achieve electronic business solutions for the insurance industry. One of its
projects is the creation of industry-standard application forms.
Who is the person or firm that requests insurance?
Select one:
a. The insurer
b. The applicant
c. The underwriter
d. The loss adjuster - Answer b. The applicant. An applicant is a person or firm requesting
insurance. The applicant completes and signs written application forms that contain personal
statements.
What does an underwriter watch for when there are more than one loss payees named on an
insurance application?
Select one:
a. Financial hardship, poor property maintenance, and temptation for fraud
b. Increased severity of loss, slow service, and a temptation for fraud
, as it could mean financial challenges, improper property maintenance, and a temptation to
stage a loss.
Why do insurers ask for prior insurance on an application?
Select one:
a. Confirm claim history and check for any lienholders
b. Confirm loss history and identify the loss payees
c. Identify previous declinations or cancellations and the amount of coverage
d. Confirm loss history and identify any gaps in coverage - Answer d. Confirm loss history and
identify any gaps in coverage. Applicants are asked for prior insurers names, policy numbers and
policy expiry dates; and this information is used to check loss history, identify any gaps, and
potential moral hazard.
In ratemaking, what does the validity of statistics on past losses depend on?
Select one:
a. A larger sample group and longer time observed
b. A smaller sample group and shorter time observed
c. A larger sample group and shorter time observed
d. A smaller sample group and longer time observed - Answer a. A larger sample group and
longer time observed. The validity of these statistics depends on loss data covering several
losses over time. The larger the group and the greater the time observed, the more stable the
results.
The degree of uncertainty of a prediction is reduced as the size of the sample is increased is one
of the reliability factors in which concept?
Select one:
a. Contribution
b. Reinsurance
c. Lloyd's of London
d. Law of large numbers - Answer d. Law of large numbers. Law of Large numbers is a
mathematical premise which states—the degree of uncertainty is reduced as the number of
Practice Questions with Already
Solved Solutions 2026.
What is a main benefit of having an insurance application completed in writing and signed by
the applicant?
Select one:
a. Provides accurate documentation of the coverage requested and confirms the accuracy of the
information.
b. Is less costly for the insurer to underwrite written applications than oral applications
c. Allows the insured to get a premium discount of fifteen percent
d. Allows the insured to choose which questions to answer and which to leave blank - Answer
a. Provides accurate documentation of the coverage requested and confirms the accuracy of the
information. The benefit of a written application is that it provides accurate documentation of
what was requested, and indicates the intentions of the parties at the time the application was
made—particularly if the client signs it, as the signature attests to the accuracy of the
information.
What other types of supplemental applications might an intermediary add to a standard
application?
Select one:
a. Home business and oil tank
b. Overland water and criminal history
c. Rental supplements and pre-existing damage
d. Wood heat and sewer back up - Answer a. Home business and oil tank. In addition to the
introductory client profiles form, the intermediary may use other specific application forms for
wood heat, rental supplements, oil tanks, overland water, or business in the home.
What can result from an agent/broker's failure to advise insurers of all information material to a
risk during the application process?
Select one:
,d. The agent/broker may have to pay a fine to the insurer. - Answer b. The agent/broker may
be found liable for losses that may occur. Agents/brokers acting on behalf of insurance
companies and their clients have a duty to advise insurers of all the information material to the
risk.
Which national association is a main resource for and has a key initiative to create industry-
standard application forms?
Select one:
a. Financial Services Regulatory Association (FSRA)
b. Insurance Bureau of Canada (IBC)
c. Financial Services Regulatory Authority (FSRA)
d. Centre for Study of Insurance Operations/Centre D'Étude de la Pratique D'Assurance
(CSIO/CEPA) - Answer d. Centre for Study of Insurance Operations/Centre D'Étude de la
Pratique D'Assurance (CSIO/CEPA). A number of different application forms are in use. The CSIO
is a national association of property and casualty insurers and independent insurance brokers
working together to achieve electronic business solutions for the insurance industry. One of its
projects is the creation of industry-standard application forms.
Who is the person or firm that requests insurance?
Select one:
a. The insurer
b. The applicant
c. The underwriter
d. The loss adjuster - Answer b. The applicant. An applicant is a person or firm requesting
insurance. The applicant completes and signs written application forms that contain personal
statements.
What does an underwriter watch for when there are more than one loss payees named on an
insurance application?
Select one:
a. Financial hardship, poor property maintenance, and temptation for fraud
b. Increased severity of loss, slow service, and a temptation for fraud
, as it could mean financial challenges, improper property maintenance, and a temptation to
stage a loss.
Why do insurers ask for prior insurance on an application?
Select one:
a. Confirm claim history and check for any lienholders
b. Confirm loss history and identify the loss payees
c. Identify previous declinations or cancellations and the amount of coverage
d. Confirm loss history and identify any gaps in coverage - Answer d. Confirm loss history and
identify any gaps in coverage. Applicants are asked for prior insurers names, policy numbers and
policy expiry dates; and this information is used to check loss history, identify any gaps, and
potential moral hazard.
In ratemaking, what does the validity of statistics on past losses depend on?
Select one:
a. A larger sample group and longer time observed
b. A smaller sample group and shorter time observed
c. A larger sample group and shorter time observed
d. A smaller sample group and longer time observed - Answer a. A larger sample group and
longer time observed. The validity of these statistics depends on loss data covering several
losses over time. The larger the group and the greater the time observed, the more stable the
results.
The degree of uncertainty of a prediction is reduced as the size of the sample is increased is one
of the reliability factors in which concept?
Select one:
a. Contribution
b. Reinsurance
c. Lloyd's of London
d. Law of large numbers - Answer d. Law of large numbers. Law of Large numbers is a
mathematical premise which states—the degree of uncertainty is reduced as the number of
