ONTARIO AUTO (RIBO) EXAMINATION
COMPLETE QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE THIS YEAR
JUST RELEASED
Exam Coverage
1. Ontario Automobile Policy (OAP 1)
o Policy structure, mandatory coverages, exclusions, conditions, insured persons.
2. Statutory Accident Benefits Schedule (SABS)
o Medical benefits, rehabilitation, attendant care, income replacement, caregiver and death
benefits.
3. Liability Coverage
o Third-party liability, legal defense, settlement procedures, policy limits.
4. Direct Compensation—Property Damage (where applicable under current Ontario
framework and applicable policy wording)
o Eligibility, limitations, claim procedures.
5. Collision and Comprehensive Coverage
o Physical damage, deductibles, exclusions, specified perils, all perils.
6. Endorsements
o OPCF forms, SEFs where relevant, loss of use, depreciation waiver, rental vehicles.
7. Underwriting
o Risk evaluation, driver classification, vehicle usage, territory, rating factors.
8. Claims Handling
o First notice of loss, investigation, fraud indicators, salvage, subrogation.
9. Ethics and RIBO Regulations
o Professional conduct, disclosure duties, client confidentiality, conflicts of interest.
10. Insurance Fundamentals
Insurable interest, utmost good faith, indemnity, proximate cause, contribution, subrogation.
Ontario Auto (RIBO) Examination
1. A client purchasing an Ontario automobile insurance policy
asks which coverage is legally required before operating a
vehicle on public roads. Which answer is most accurate?
,A. Comprehensive coverage only
B. Collision coverage only
C. Mandatory automobile liability and required statutory
coverages included in the standard policy
D. Rental reimbursement coverage
Answer: C
Rationale: Ontario law requires mandatory automobile
insurance, including third-party liability and other required
statutory coverages provided under the standard automobile
policy.
2. While reviewing an application, an insurance broker
discovers the applicant intentionally omitted a previous at-fault
accident. Which insurance principle has the applicant most
clearly violated?
A. Contribution
B. Indemnity
C. Utmost good faith
D. Proximate cause
Answer: C
Rationale: Applicants must disclose all material facts honestly
so insurers can accurately assess and price the risk.
,3. An insured selects a higher deductible for collision coverage
because they want to reduce annual premiums. What is the
primary consequence of this decision?
A. Lower premiums and lower out-of-pocket costs after every
loss
B. Higher premiums with greater claim payments
C. Lower premiums but greater personal expense when a
covered collision claim occurs
D. Elimination of collision coverage exclusions
Answer: C
Rationale: Increasing the deductible generally lowers
premiums but increases the insured's financial responsibility
when a claim occurs.
4. A driver accidentally damages another person's vehicle
during a collision for which the insured is legally responsible.
Which coverage primarily responds?
A. Comprehensive coverage
B. Third-party liability coverage
C. Specified perils coverage
D. Loss of use coverage
Answer: B
Rationale: Third-party liability covers damages the insured
becomes legally obligated to pay to others.
, 5. An insured wants protection if their own vehicle is stolen
from a secured parking garage overnight. Which coverage
generally applies?
A. Collision coverage
B. Comprehensive coverage
C. Third-party liability coverage
D. Accident benefits only
Answer: B
Rationale: Theft is generally covered under comprehensive
coverage, subject to policy terms and deductibles.
6. Why is determining whether information provided by an
applicant is considered a material fact especially important
during underwriting?
A. It only affects claim settlement after an accident.
B. It determines whether information influences the insurer's
acceptance or pricing of the risk.
C. It affects only premium payment schedules.
D. It applies exclusively to commercial automobile policies.
Answer: B
Rationale: Material facts influence underwriting decisions
regarding acceptance, rating, or policy conditions.
COMPLETE QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE THIS YEAR
JUST RELEASED
Exam Coverage
1. Ontario Automobile Policy (OAP 1)
o Policy structure, mandatory coverages, exclusions, conditions, insured persons.
2. Statutory Accident Benefits Schedule (SABS)
o Medical benefits, rehabilitation, attendant care, income replacement, caregiver and death
benefits.
3. Liability Coverage
o Third-party liability, legal defense, settlement procedures, policy limits.
4. Direct Compensation—Property Damage (where applicable under current Ontario
framework and applicable policy wording)
o Eligibility, limitations, claim procedures.
5. Collision and Comprehensive Coverage
o Physical damage, deductibles, exclusions, specified perils, all perils.
6. Endorsements
o OPCF forms, SEFs where relevant, loss of use, depreciation waiver, rental vehicles.
7. Underwriting
o Risk evaluation, driver classification, vehicle usage, territory, rating factors.
8. Claims Handling
o First notice of loss, investigation, fraud indicators, salvage, subrogation.
9. Ethics and RIBO Regulations
o Professional conduct, disclosure duties, client confidentiality, conflicts of interest.
10. Insurance Fundamentals
Insurable interest, utmost good faith, indemnity, proximate cause, contribution, subrogation.
Ontario Auto (RIBO) Examination
1. A client purchasing an Ontario automobile insurance policy
asks which coverage is legally required before operating a
vehicle on public roads. Which answer is most accurate?
,A. Comprehensive coverage only
B. Collision coverage only
C. Mandatory automobile liability and required statutory
coverages included in the standard policy
D. Rental reimbursement coverage
Answer: C
Rationale: Ontario law requires mandatory automobile
insurance, including third-party liability and other required
statutory coverages provided under the standard automobile
policy.
2. While reviewing an application, an insurance broker
discovers the applicant intentionally omitted a previous at-fault
accident. Which insurance principle has the applicant most
clearly violated?
A. Contribution
B. Indemnity
C. Utmost good faith
D. Proximate cause
Answer: C
Rationale: Applicants must disclose all material facts honestly
so insurers can accurately assess and price the risk.
,3. An insured selects a higher deductible for collision coverage
because they want to reduce annual premiums. What is the
primary consequence of this decision?
A. Lower premiums and lower out-of-pocket costs after every
loss
B. Higher premiums with greater claim payments
C. Lower premiums but greater personal expense when a
covered collision claim occurs
D. Elimination of collision coverage exclusions
Answer: C
Rationale: Increasing the deductible generally lowers
premiums but increases the insured's financial responsibility
when a claim occurs.
4. A driver accidentally damages another person's vehicle
during a collision for which the insured is legally responsible.
Which coverage primarily responds?
A. Comprehensive coverage
B. Third-party liability coverage
C. Specified perils coverage
D. Loss of use coverage
Answer: B
Rationale: Third-party liability covers damages the insured
becomes legally obligated to pay to others.
, 5. An insured wants protection if their own vehicle is stolen
from a secured parking garage overnight. Which coverage
generally applies?
A. Collision coverage
B. Comprehensive coverage
C. Third-party liability coverage
D. Accident benefits only
Answer: B
Rationale: Theft is generally covered under comprehensive
coverage, subject to policy terms and deductibles.
6. Why is determining whether information provided by an
applicant is considered a material fact especially important
during underwriting?
A. It only affects claim settlement after an accident.
B. It determines whether information influences the insurer's
acceptance or pricing of the risk.
C. It affects only premium payment schedules.
D. It applies exclusively to commercial automobile policies.
Answer: B
Rationale: Material facts influence underwriting decisions
regarding acceptance, rating, or policy conditions.
