RIBO Exam Mastery: Insurance Concepts with Verified Questions & Answers. 2025 Updates.
GRADED A+/
The RIBO Insurance Exam is the entry-level licensing test for insurance brokers in Ontario,
overseen by the Registered Insurance Brokers of Ontario (RIBO). It consists of 100 multiple-
choice questions covering general insurance, personal and commercial lines, automobile,
habitational, and travel insurance. Candidates must score at least 75% to pass within a 3-hour
time limit. The exam costs $300 and requires candidates to be employed by a RIBO-registered
brokerage. Study materials include the RIB Act, RIBO By-Laws, and OAP 1 policy. Prep courses
are available through IBAO and the Insurance Institute of Ontario.
*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
Direct Writing Companies - ✔✔-deals directly with the public - insurance company agents sell policies to
prospective insureds. Agents are employees of the company and paid salary based with commission.
Clients belong to the insurance company.
Exclusive Agency Companies - ✔✔-agents who represent only one company - they are not employees of
the insurance company. There is a commission based model and they pay their own expenses. Client
belongs to the company not the agent.
Factory Mutuals - ✔✔-Insurance companies of the mutual type that specialize in industrial risks and in
loss prevention
Function of Insurance Intermediaries - ✔✔-Basic function is to assist in completing insurance contracts
between client and insurer. They are required to stay within the scope of the contract with the insurer and
the authority of intermediary's license.
Hazard - ✔✔-condition that may cause a peril to occur or make the loss more severe - divided into
physical and moral hazards. Physical hazards' example is slippery floors. Moral hazard example would be
mental attitudes about risk.
How do insurers distribute their insurance? - ✔✔-Use of brokers, agents, direct writers and Insuretech
(similar to Kanetix)
How is a fire classified? - ✔✔-1) Actual fire/ignition (not heat)
2) Something on fire (hostile fire)
3) Accidental
"No flame, no claim"
, How many hours are required for continuing education? - ✔✔-8 hours yearly from Oct 1st to Sept 30th.
1 hour ethics, 3 hours technical and 2 maximum of personal skills
How often do you need to renew your insurance license? - ✔✔-Every year, the license requires renewal.
It may include continuing education courses.
Immediate Cause - ✔✔-last link in the chain of events
Indemnify - ✔✔-compensate for loss, damage, or injury; reimburse; repay. It is to bring the insured
person back to the point they previously were (no gain, no loss).
Independent Brokerage System - ✔✔-system in which independent insurance professionals, licensed as
brokers, sell insurance on behalf of an insurer or multiple insurers they have contracts with
Indirect Loss - ✔✔-losses that occur because of direct losses. Example: loss of income from a tenant due
to a building burning down.
Insurance - ✔✔-A contract in which one party, the insurer, for monetary consideration agrees to
reimburse another, the insured, for loss or liability for a loss by specified hazards or perils
Insurer - ✔✔-insurance company (this is different than an insurance broker)
Is automobile insurance private insurers or government run? - ✔✔-It is government run everywhere else
besides Ontario
Operating Account - ✔✔-general business items such as commissions earned and general expenses
Outstanding Loss Reservers - ✔✔-funds set aside to pay for losses that have been incurred but not yet
paid for
Peril - ✔✔-the event that caused a loss covered by the policy. Example: fire. (WHISLER acronym)
GRADED A+/
The RIBO Insurance Exam is the entry-level licensing test for insurance brokers in Ontario,
overseen by the Registered Insurance Brokers of Ontario (RIBO). It consists of 100 multiple-
choice questions covering general insurance, personal and commercial lines, automobile,
habitational, and travel insurance. Candidates must score at least 75% to pass within a 3-hour
time limit. The exam costs $300 and requires candidates to be employed by a RIBO-registered
brokerage. Study materials include the RIB Act, RIBO By-Laws, and OAP 1 policy. Prep courses
are available through IBAO and the Insurance Institute of Ontario.
*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
Direct Writing Companies - ✔✔-deals directly with the public - insurance company agents sell policies to
prospective insureds. Agents are employees of the company and paid salary based with commission.
Clients belong to the insurance company.
Exclusive Agency Companies - ✔✔-agents who represent only one company - they are not employees of
the insurance company. There is a commission based model and they pay their own expenses. Client
belongs to the company not the agent.
Factory Mutuals - ✔✔-Insurance companies of the mutual type that specialize in industrial risks and in
loss prevention
Function of Insurance Intermediaries - ✔✔-Basic function is to assist in completing insurance contracts
between client and insurer. They are required to stay within the scope of the contract with the insurer and
the authority of intermediary's license.
Hazard - ✔✔-condition that may cause a peril to occur or make the loss more severe - divided into
physical and moral hazards. Physical hazards' example is slippery floors. Moral hazard example would be
mental attitudes about risk.
How do insurers distribute their insurance? - ✔✔-Use of brokers, agents, direct writers and Insuretech
(similar to Kanetix)
How is a fire classified? - ✔✔-1) Actual fire/ignition (not heat)
2) Something on fire (hostile fire)
3) Accidental
"No flame, no claim"
, How many hours are required for continuing education? - ✔✔-8 hours yearly from Oct 1st to Sept 30th.
1 hour ethics, 3 hours technical and 2 maximum of personal skills
How often do you need to renew your insurance license? - ✔✔-Every year, the license requires renewal.
It may include continuing education courses.
Immediate Cause - ✔✔-last link in the chain of events
Indemnify - ✔✔-compensate for loss, damage, or injury; reimburse; repay. It is to bring the insured
person back to the point they previously were (no gain, no loss).
Independent Brokerage System - ✔✔-system in which independent insurance professionals, licensed as
brokers, sell insurance on behalf of an insurer or multiple insurers they have contracts with
Indirect Loss - ✔✔-losses that occur because of direct losses. Example: loss of income from a tenant due
to a building burning down.
Insurance - ✔✔-A contract in which one party, the insurer, for monetary consideration agrees to
reimburse another, the insured, for loss or liability for a loss by specified hazards or perils
Insurer - ✔✔-insurance company (this is different than an insurance broker)
Is automobile insurance private insurers or government run? - ✔✔-It is government run everywhere else
besides Ontario
Operating Account - ✔✔-general business items such as commissions earned and general expenses
Outstanding Loss Reservers - ✔✔-funds set aside to pay for losses that have been incurred but not yet
paid for
Peril - ✔✔-the event that caused a loss covered by the policy. Example: fire. (WHISLER acronym)
