RIBO – General Questions and Answers Already Graded A

RIBO – General Questions and Answers Already Graded A Which of the following provinces offer only government compulsory auto insurance? British Columbia, Manitoba and Saskatchewan The definition of ordinary negligence? Is the failure to do what a reasonable person would do in a given situation. A broker/agent is responsible for what? Writing only those classes of business acceptable to his/her insurer. An insurance contract contains all of the elements of any other legal contract. One element that must also be contained in a valid contract of insurance is what? Utmost good faith. C-82 Study 2 ("In it's underwear") The definition of a physical hazard would best be described as what? Slippery floors, C-81 Study 1 Insurance is what? The undertaking by one person to indemnify another person against loss or Liability for loss in respect of a certain risk or peril As far as reinsurance is concerned, the amount one party reinsures with another is called what? Its cession True or False: The absence of true mutual understanding with respect to a contract will not effect the legality of the contract once it has been signed False Which of the following auto coverage responds regardless of fault? Accident Benefits, A B Pays Regardless of Fault What is the name of the legal process used by insurers when collecting from a responsible 3rd party? Subrogation True or False: Statutory Conditions can be changed at the request of the insured to decrease minimum legislated coverage available. False: Set out by Insurance act Which of the following statements about co-insurance is true? They are designed to encourage the insured to carry adequate amounts of Insurance. They force the insured to bear a portion of every loss if under insurance exists. It is mostly applied to commercial policies. Which of the following helps insurers determine the probability of insured losses in the future? Past loss histories (this is Step 2 in order to determine rates and premiums) When an insurer intentionally issues a policy that differs from the application. It must notify the insured in writing the ways in which it differs from the application. 3 things must occur notify, writing, silence is acceptance What would not affect the rate on a property insurance policy? Length of time applicant has been in business. (Not on the application) Under RIBO regulation 991, section 15, a broker would not be considered to be guilty of misconduct if: The broker compares line for line, a potential customer's present insurance coverage with that of a competing company, which he or she represents, in order to point out the benefits of his proposed policy coverage. Of the following, the person who most clearly has an insurable interest in an automobile is The person who actually owns the automobile Extension insurance is available in provinces having government automobile insurance plans. It may be used to increase limits of insurance and/or reduce deductibles. Which of the following types of insurance does not belong under the heading of General Insurance? Life Insurance What do Applications for insurance policies do? Provide details for assessing and rating a risk. True or False: Third parties are not a party to the policy. True True or False: Every member must maintain errors and omissions insurance of at least $100,000 for any one occurrence. False: Errors and Omissions at 1 Million and Fidelity at 100 K A member who places insurance with an insurer unlicensed to trade insurance in Ontario must? Obtain the written consent of the member of the pu