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1. Every RIBO brokerage must car- $3,000,000
ry which limit of Errors and
Omissions Insurance?
2. Damages awarded for Special damages
out-of-pocket items such as
medical expenses are known as
which of the following?
3. Responsibilities the insureds 1. The insurer must pay the loss within a specified period of
and insurers have relating to time.
losses (Statutory Conditions) 2. The insurer has to notify the insured in writing of intent to
repair.
3. The insured must take reasonable steps to prevent further
damage.
4. The insured must deliver the proof of loss as soon as
practicable.
4. What is insured under boiler and 1. Computers and communication equipment
machinery (Equipment Break- 2. Boilers
down Insurance)? 3. Air conditioning equipment
5. What is the purpose of the Sue Requires the insured to do whatever is reasonably necessary
and Labour Clause in an insur- to protect or recover the insured property
ance policy?
6. Statutory Conditions in a Fire Both the insured and the insurer
Policy are primarily to protect
the rights of ...
7. When collecting a premium de- Place the deposit in a trust account
posit, an agent/broker is re-
quired to ...
, RIBO Practice Exam 1
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8. The law of large numbers ... affects the reliance to be placed on a given probability.
The statement is saying that when we have a lot of data or
observations, it makes us more confident in the probability
of something happening. In simpler terms, it means that the
more times we see an event or collect data, the more we can
trust the probability we've calculated for that event. So, the
"law of large numbers" tells us that having more data helps
us trust our probabilities more.
9. If information on the latest filed within 30 days of the change.
application to RIBO becomes
obsolete, the member must file
a notice correcting the informa-
tion
10. Misrepresentation by the in- may void the policy at the option of the insurer.
sured in applying for insurance
11. An insurer wishing to terminate giving the insured 15 days' notice by registered mail and
an insurance policy may do so by refunding the unearned premium.
12. Every RIBO brokerage must car- $100,000.
ry a Fidelity Bond with an IBO In essence, a Fidelity Bond with an IBO endorsement is a
endorsement to a limit of specialized insurance policy that ensures the brokerage firm
is financially protected in case of fraudulent activities by its
employees or agents within the context of insurance-related
operations.
13. In Quebec, Statutory Conditions All amounts of premiums and losses are paid in Canadian
are replaced by General Condi- currency.
tions. Which of the following is