Module 1: What is RIBO?

Question 1

What is RIBO?

Answer 1

a. RIBO stands for the Registered Insurance Brokers of Ontario
i. Self-governing, self-supporting organization of general insurance brokers in Ontario
ii. Established by the Ontario Government in 1981
iii. Regulate the licensing, professional competence, ethical conduct and insurance related financial obligations of all independent general insurance brokers in Ontario

Question 2

RIBO Governance

Answer 2

• The RIBO council supervises the management and affairs of the corporation, and
• Is responsible for setting policies and guidelines
• Acts as a board of director, virtually like any company

Question 3

Council Requirements

Answer 3

The council consists of 13 people: 9 Individual RIBO members elected by members (5 ppl have 3-year term/4 ppl have a 5-year term)
4 Individuals from the general public appointed by Lieutenant Governor (4 years or less - eligible for 1 reappointment)

Question 4

How is RIBO funded?

Answer 4

Self-funded on the basis of registration fees paid by every brokerage firm and individual licensed to sell insurance in the province of Ontario

Question 5

What is an Insurance Broker?

Answer 5

a) An independent insurance professional governed by the RIB Act, operating in ON
b) Brokers serve their clients by:
a. Selling insurance including cvg for homes, autos, boats, businesses, etc
b. Providing independent advice and product choice from a variety of insurers
c. Representing their client’s best interest when negotiating a contract between the client and the insurer

Question 6

Requirements of Insurance Brokers

Answer 6

1. Every registered insurance brokers:
   a. Must be properly licensed
   b. Is subject to a code of conduct
   c. Must meet certain qualification standards and continuing education requirements, established by the QUALIFICATION & REGISTRATION Committee
   d. Must be bonded and covered under an E&O policy

Question 7

How is Public Interest Represented?

Answer 7

a. At least one member of the public sits on each RIBO Committee to represent the interest of insurance consumers and the general public
b. The complaints and investigation department helps consumers with enquiries or complaints regarding a broker
a. RIBO is responsible for ensuring that both sides of a complaint are investigated, promptly and fairly
c. RIBO’s Consumer Complaints Officer resolves the majority of complaints from the public within 24 hours. Complaints indicating that professional misconduct has occurred are referred to the Complaints committee

Question 8

To Whom is RIBO Accountable?

Answer 8

RIBO must provide a copy of its annual report to:

a. The Minster of Finance
b. The Superintendent of Financial Institutions
c. Every RIBO registrant

Question 9

What are the 3 RIBO Committees?

Answer 9

i. Qualification and Registration Committee
> Sets and reviews RIBO’s qualification standards
> Ensure that businesses and individuals comply with the standards
ii. Complaints Committee
> Investigates allegations of professional misconduct against a brokers
> Determine if evidence of misconduct is sufficient to warrant a referral to the Discipline Committee
iii. Discipline Committee
> Conducts a hearing to determine if a broker is innocent or guilty of the allegations
> If found guilty, the Discipline Committee may impose an appropriate penalty, which can range from a reprimand to license revocation