RIBO Insurance Exam Latest Version 2024/2025 Expert-Verified Q&As

*What is a legally binding contract?* (Common Law Contracts) - Agreement - an offer by one party and an acceptance by second party Consideration - it must include price/value and in the present or future (money or sealed documents) Capacity to legally contract - persons must not be minor, insane, impaired or mentally incompetent Genuine intention - beyond just agreement, there has to be true intention involved Legality of Purpose - contract requires to be legal from all aspects (cannot break a law or public policy) A.C.C.G.L (A Cool Cat Gets Lucky) in it's underwear *What is a material fact?* - A material fact is anything that the customer may not be able to discover by himself that would change his approach on whether or not to continue with the transaction. Binding authority - ability to confirm coverage to a client on behalf of the insurer Can insurance be passed onto another? - No, you cannot sell your insurance with the vehicle when you sell it. Insurance is a personal contract. Can the insurer sue in their own name? - In Common Law provinces, they cannot. In Quebec, the general policy conditions allow the insurer to sue in their own name.. Common Law - Exists everywhere besides Quebec. Agents are employed to secure contracts and act for an employer in contractual matters. Brokers are employed for Insurance Cover Note - when binding coverage, a cover note is a document sent to the insurer immediately. It serves as the written binder. Binders and cover notes are usually used interchangeably. As the broker, we only discharge our duty when all parties receive confirmation Direct Loss - losses that are involving damage to or destruction of the property insured. Example: replacing a stolen stereo