MC Quiz Questions Flashcards
Every registered insurance broker must be:
Bonded and covered under an Errors and Omissions policy
RIBO is:
The self-regulatory body for general insurance brokers in Ontario
To whom is RIBO accountable?
Ministry of Finance, the Superintendent of Financial Institutions and every RIBO registrant
An individual is required to be registered as an insurance broker if s/he ______.
Provides risk management and loss prevention services on behalf of another for compensation.
The majority of complaints from the public are resolved within:
24 hours
At least ____ member(s) of the public, appointed by the Lieutenant Governor in Council, sits on every RIBO Committee to represent the interest of insurance consumers and public in general.
One (1)
What does RIBO regulate?
Licensing, professional competence, ethical conduct and insurance related financial obligations of all independent general insurance brokers in the province of Ontario
Every insurance broker _______________.
a. Must meet certain qualification standards and continuing education requirements, established by the Qualification and Registration Committee. Be bonded and covered under an Errors & Omissions policy.
b. Must be properly licensed.
c. Is subject to a code of conduct.
RIBO is self-funded on the basis of ____________.
Registration fees paid by every brokerage firm and individual broker licensed to sell insurance in the province of Ontario.
RIBO has three (3) different committees which work with the council. Its main authority is exercised through:
Qualification and Registration Committee; Complaints Committee; and the Discipline Committee
The Complaints Committee shall be composed of:
Such number of persons as council may determine but at least one (1) member of the Committee shall be a person who is not a member of the Corporation and who is appointed to the Council or to the panel of lay persons by the Lieutenant Governor in Council.
Every individual member who is, a) registered under this Act and b) not in default of payment of any prescribed fee
is qualified to vote at an election of members of council.
The Corporation shall, within _____months after termination of each fiscal year, provide to its members and the Minister an annual report relating to its activities.
Four (4)
No person shall act as an insurance broker unless the person is a registered insurance broker under this act. What is the exception?
Lawyers, accountants or actuaries acting in the professional capacity
Every person who contravenes any provision of this Act and every director or officer of a corporation or unincorporated association and every member of a partnership who knowingly concur in such contravention is guilt of an office and on conviction is liable to a fine of $_______ or imprisonment for a term of not more than ____ months.
$100,000; Six (6) months
The Qualifications and Registration Committee may:
Direct the Manager to issue or refuse to issue certificates and renewals.
The Discipline Committee shall be composed of:
Such number of persons as the Council may determine but at least four (4) members of the committee shall be persons who are not members of the Corporation and who are appointed to the Council or to the panel of lay persons by the Lieutenant Governor in Council.
The appointment of every person under subsection (2) shall be for a term not exceeding ____ year(s) and a person whose appointment expires is eligible for one reappointment.
Four (4)
No proceeding under this section shall be commenced more than ____ years after the time when the subject-matter of the proceeding arose.
Five (5) years
Funds received by a member in the course of business on behalf of insurers from members are the public or on behalf of the public form insurers are deemed to be:
Trust Funds
RIBO is governed by a council consisting of:
Nine (9) persons who are individual members of the Corporation & four (4) persons who are not members of the Corporation
Which of the following is NOT considered misconduct?
Using an illustration, circulation, or memorandum to represent the terms, benefits or advantages of any policy or contract of insurance
An insurance broker whose registration is restricted to acting under supervision may NOT_______.
deposit insurance premiums in their own trust bank account.
What is the minimum limit of Errors and Omissions insurance coverage required for a broker in Ontario to satisfy the RIBO Act?
$3 million
The RIBO Regulations require a broker to ____________.
carry on business in a manner consistent with the RIBO Code of Conduct.
Which of the following is TRUE?
a. An insurance broker can disclose information without the consent of the client.
b. A restricted broker can control half of the partnership.
c. Misconduct is the failure to comply with the guidelines of the RIB Act.
d. An insurance broker provides all risk management services, excluding claims.
Misconduct is the failure to comply with the guidelines of the RIB Act.
The RIBO Code of Conduct is stated in Ontario Regulation 991, Section 14. Three (3) of the following four (4) provisions are contained in the Code. Indicate the one (1) that is NOT.
a. To be both candid and honest when advising the member’s client
b. Not to charge or accept any fee which is not fully disclosed prior to the service being rendered
c. To be competent to perform the services which the member undertakes on the client’s behalf
d. To maintain a trust account for all trust money received
To maintain a trust account for all trust money received
The Regulations under the RIB Act require an insurance broker to provide evidence that insurance has been placed on behalf of a client by ______.
a policy or certificate of coverage to the member of the public from whom he/she acts within twenty-one (21) days after the placing of the insurance.
Every member who is a sole proprietor, partnership or corporation is required to maintain, at all times, an equity capitalization of not less than an amount equal to the maximum deductible amount of the member’s errors and omissions and fidelity insurance policy or, in the case of a member who is a sole proprietor ___________.
$2,500; or in the case of a member who is a corporation or partnership $5,000, whichever is greater.
A new home contractor offers to pass you leads in exchange for a finder’s fee. How do you respond?
I cannot do this as you are not a registered or licensed general insurance intermediary.
In addition to completing an application for renewal of registration annually, insurance brokers must also advise RIBO _______________.
when they change employment from one brokerage to another.
See the By-Laws in the Act, Page 59 Bylaws #20 3(a)
An election of members to council shall take place on the first Monday of November in every year and shall include:
3 persons shall be elected for a term of 3 years
There are various “Classes of Membership” stated in Part XV; Classes of Membership of By-Law number one. Which one (1) of the following is NOT a class listed?
Other than Life
The financial year of the Corporation shall end on the _________ in each year.
31st day of July
Following registration as an insurance broker, an individual _______.
must notify the Registered Insurance Brokers of Ontario within (30) days of any change of information in the original application for registration or renewal.
A person shall not hold office as an elected member of the Council for more than _____ consecutive terms
Two (2)
Where suspension was due to ____________ the member can apply for reinstatement within 12 months of suspension provided evidence of meeting the educational requirement has been provided.
educational requirements
A member who has acted as and been registered as a member is restricted to acting under supervision continuously for a period of ________ months.
24
The by-law which deals with the application for a certificate of registration and information changes is found in:
By-law No. 20
If a member fails to comply with the educational requirements, their registration will be suspended effective on ________ of the year of non-compliance.
September 30
All funds received or receivable by a member in the course of business on behalf of insurers from members of the public or on behalf of members of the public from insurers are deemed to be:
Trust Funds
What is the maximum fine levied against an individual member for misconduct?
$25,000
Where the Discipline Committee revokes, suspends or restricts the certificate of a member on the grounds of misconduct or incompetence, the decision takes effect _______.
Immediately
A member shall ensure that all trust money he or she receives, whether by cash, cheque or otherwise, is deposited (or invested) within _____ banking days after the day the trust money is received.
Three (3)
Every member who is a sole proprietor, partnership or corporation shall, within ______ days after the member’s fiscal year-end, complete and file with the manager a position report in the form approved by Council.
Ninety (90)
Which of the following is NOT a Class of Membership?
Select one:
a. Specific Restrictions
b. Restricted to Accident and Sickness Insurance
c. Restricted to Consulting
d. Restricted to Personal Lines only
Restricted to Personal Lines only
A member must submit an application for renewal and fees by August 31. If not, the registration of the insurance broker will be suspended effective:
September 30
The Council shall establish and appoint the following committees____________________.
A Qualification and Registration Committee; One or more Complaints Committees; A Discipline Committee
Every member who is a sole proprietor, is required to maintain, at all times, an equity capitalization of not less than an amount equal to the maximum deductible of the members errors and omissions and fidelity insurance or ______________.
$2,500
All sole proprietorships, partnerships, and corporations apply for, or holding a certificate of registration as an active firm must provide or maintain at least _____________.
two (2) letters of intent from contracted insurers or two (2) standard market brokerage contracts.
A member shall not act or assist in the placing of insurance with an unlicensed insurer unless:
The member has obtained the written consent of the member of the public for whom the member acts
For the purpose of the Act, which one (1) is NOT considered “misconduct”?
Select one:
a. The use of any practice or conduct that results in unreasonable delay or resistance to the adjustment of claims.
b. The use of any payment, allowances or gift or any offer to pay, all or give, directly or indirectly, any money or thing of value as an inducement to any prospective insured to insure.
c. The use of any incomplete comparison of any policy or contract of insurance with that of any insurer.
d. The use of methods of solicitation and advertising that are compatible with the honour and dignity of the vocation.
The use of methods of solicitation and advertising that are compatible with the honour and dignity of the vocation.
The Manager or his or her designate shall, on or before the _______ in a year of an election of members to the council, forward a written notice to every member entitled to vote.
15th day of July
Errors and Omissions insurance or some other form of financial guarantee is required by every member. The member must provide at least _________in respect to any one (1) occurrence.
$3,000,000
A member who wishes to be nominated as a candidate for election must provide a signed nomination form which is signed by:
Fifteen (15) individual members qualified to vote
The Corporation shall, within ____ months after the termination of each financial year, provide to its member and the Minister an annul report relating to its activities in that year.
Four (4)
An individual is qualified to be issued and hold a certificate of registration as an insurance broker. Which of the following is NOT a requirement?
Select one:
a. Is of good character and has demonstrated reasonable ground for belief that he or she will carry on business in accordance with law, integrity, and honesty
b. Has complied with the provisions of this Regulation
c. The individual complies with the continuing education requirements established by the Council
d. All of the above
d. All the above
Every person who contravenes any provision of this Act and every director or officer of a corporation or unincorporated association and every member of a partnership who knowingly concur in such contravention is guilty of an office and on conviction is liable to a fine of ______ or imprisonment for a term of not more than six (6) months or to both.
$100,000
If a member discovers there is a conflict of interest or potential conflict of interest that is associated with a transaction or recommendation, the member must:
Disclose it in writing
Every member acting on behalf of a member of the public in negotiating or placing contract of insurance with one or more insurers shall provide a policy or a certificate of coverage to the member of the public for whom the member acts within ______ days after the placing of insurance certifying that the insurance has been placed, and at the same time shall send a copy of the policy or certificate coverage to each of the insurers whose names appear on the policy or certificate.
Twenty-One (21)
