Exam (elaborations) RIBO Level 1

RIBO Level 1 Exam Questions
With Correct Answers

, Indemnify - CORRECT ANSWERS-The action of compensating an insured following a
loss under the insurance policy.

Risk - CORRECT ANSWERS-The chance of loss;
or an object or activity that is insured (about to be insured)

Peril - CORRECT ANSWERS-An event that may cause a loss to occur

Object of Insurance - CORRECT ANSWERS-The item that is insured or covered in an
insurance policy

Indemnity - CORRECT ANSWERS-to put you back in the same financial position (just
prior to loss) NO BETTER NO WORSE

Insured / Policy holder - CORRECT ANSWERS-The person who purchases an
insurance policy
Noted as First Party

Insurer - CORRECT ANSWERS-Insurance company who issued the insurance policy
and who compensates/indemnifies a policy holder in the event of a loss
Noted as second party

Premium - CORRECT ANSWERS-The sum of money paid by a person to an insurance
company in exchange for an insurance policy

RIBO - Registered Insurance Brokers of Ontario - CORRECT ANSWERS-A Self-
governing, self-funded organization of general insurance brokers in Ontario
RIBO regulates the
- Licensing;
- Professional competence;
- Ethical conduct
- Insurance-related financial obligations
of all independent general insurance brokers in ON through the RIB Act

General Insurance - CORRECT ANSWERS-- Also referred to as Property and Casualty
(P&C)
- Anything other than Life or Health Insurance

Property risk - CORRECT ANSWERS-Financial loss occurs when owned property is
lost or damaged

Liability risk - CORRECT ANSWERS-When a person's negligent actions result in injury
to others or damage to another's property