BB Practice Test 2 RIBO Questions and Answers 100% Solved

BB Practice Test 2 RIBO Questions and Answers 100% Solved As a broker holding a restricted license you are not able to: a) Sell insurance policies on behalf of more than one insurer b) Open and operate a trust account c) Counsel Potential clients on the insurance choices available d) Bind coverage b Rules and agreements concerning binding insurance coverage by brokers are: a) Laid out in the Insurance Act of Ontario b) Set by RIBO and are uniform and apply to every insurance broker firm in Ontario c) Set and agreed upon between each insurance company and the broker office d) Enforced by the Department of Insurance c When a new broker is issued a registration certificate restricted to acting under supervision, he/she may: a) Be the designated individual responsible to RIBO for insurance matters in the brokerage office b) Deal directly with the public with regards to soliciting, negotiation, procuring or making of any contract or insurance on behalf of insurers c) Establish and set up an insurance brokerage office, providing arrangements are made for the insurance company to countersign all policies d) Set up and arrange a trust account b No insurer shall use a form of application, policy, endorsement or renewal or continuation certificate in respect to automobile insurance other than: a) A form created by FSCO b) A form published by RIBO c) A form approved by the superintendent d) A form approved by a Lieutenant Governor c A member who places insurance with an insurer unlicensed to trade insurance in Ontario must; a) Arrange for the insurer to be licensed before the coverage is placed b) Ensure no additional taxes are charged to the expense of the insured c) Obtain the written consent of the member of the public whom the broker services to the effect that they are aware their coverage will be carried by an unlicensed insurer in the province d) Obtain written guarantees from the insurer that they will abide by the legal requirements under the Insurance Act of the province c An insurance broker: a) Acts in any manner in soliciting, negotiating, or procuring the making of any contract of insurance or reinsurance b) Does not provide risk management c) Holds his/her employees out as insurance consultants d) Only advises a The amount of Error and Omission and Fidelity insurance every member must maintain is: a) $200,000 & $500,000 b) $100,000 & $250,000 c) $1,000,000 & $100,000 d) $500,000 & $500,000 c To provide education for broker members of the property casualty insurance industry is the purpose of which organization? a) Insurance Bureau of Canada b) Insurance Advisory Organization c) Insurance Brokers Association of Ontario d) Registered Insurance Brokers of Ontario c The Registered Insurance Brokers Act of Ontario requires an individual to be registered if they: a) Are licensed under the Insurance Act to write business on behalf of a single insurer b) Advise their friends to buy insurance from their insurance broker c) On behalf of another negotiate an insurance contract and receive compensation d) Are a Risk Manager for their employer c A real estate salesman in your city has arranged to pass you leads whenever he sells a home and in return asks you to give him some premium consideration when his policy is up for renewal. You consult the RIBO Act and realize that: a) Contrary to popular belief you can reduce the premium but only up to the amount of your commission. b) You cannot pay him for anything directly but you can pay a finders fee to the Real Estate firm which equals the first year premium c) Finders fees can be paid but only to persons who are registered as insurance intermediaries d) No cash can be exchanged, however there is nothing to prohibit you purchasing a barbecue or other things of value as recognition for his assistance c When an insurance broker moves from a brokerage firm and begins working for a different firm, the individual must advise: a) The Department of Insurance as soon a practicable b) RIBO at the time of their new employer submits the next financial position report c) RIBO within 30 days of the change d) RIBO at the time the individual renews his/her registration certificate c As per section 14.7 of regulation 991 (RIB Act), "a member shall not act as insurance broker in accordance with the code of conduct" a) by acting as an insurance agent b) In a manner consistent with the code c) By jeopardizing the member's integrity, independence or competence d) With courtesy and good faith c As an insurance broker "restricted to act under supervision" a) You may sell and solicit insurance and provide consultation to the general public only within the community where your office is located b) You may solicit insurance only from Individuals who call to or visit your office c) You may not act as a sole proprietor, control trust funds, or act as a designated individual d) You may control a trust account under the supervision of the designated individual c If you are employed as a general insurance broker, you are required to be RIBO licensed if you: a) Are a receptionist and you refer clients to a producer b) Are filing claims information, policy declarations and endorsement forms c) collect and receipt insurance d) Discuss with the general public their insurance needs d Brokers may act in a manner that could be considered a conflict of interest if they: a) Are acting on behalf of the client while accepting payment on behalf of the insurer b) Offer advice regarding the type of insurance most suitable to their client's needs and this is also in the best interests of the insurer c) Act in a manner that is above reproach from both the clients and insurers perspective d) Represent both the client and the insurer at the same time d Identify the Misconduct a) The use of any practice or conduct that results in unreasonable or resistance to the fair adjustment of a claim b) A member shall not assist in the unauthorized practice of the member's vocation c) A member who engages in another business or occupation concurrently with the practice of the members vocation shall not allow such outside interest to compromise that member integrity, independence or competence d) All of the above a In which of the following situations would you be guilty of rebating? a) You quoted your client a premium of $1500 and the policy was issued with a premium of $1575. You call the insurance company and arrange to decrease your commission by $74 to make up the difference b) You have a quote from your insurance company for $1000. The competition quotes $750 and you decide you really want the business so you match the reduced premium and contribute $250 yourself c) The insurer issues a policy with a premium of $1200 for your client. You realize that a mistake has been made on the application that increased the charge substantially. You explain the situation to your client and contact the company to rerate the policy d) All of the above b Rebating is? a) Sharing the commission with someone who has helped secure the business b) Offering the company business that it does not desire c) Charging an insured less than the premium shown on the policy d) Sharing the commission with someone who does not hold a brokers license c RIBO is which of the following a) The provincial governmental body that licenses insurance agents b) A trade association of insurance brokers c) A self-regulatory body that governs the licensing of insurance agents d) A self-regulatory body concerned with the operation of insurance brokers d Which is a function that is not the responsibility of RIBO" a) Answering questions pertaining to running some areas of your business as it relates to the act b) Assisting brokers to handle complaints within the act and regulations c) To ensure when a complaint is received against a broker that both sides of the enquiry are investigated promptly and fairly d) The protection of the interests of brokers in Ontario d