RIB Act Review

Question 1

Every RIBO brokerage must carry a Fidelity Bond with an IBO endorsement to a limit o

Select one:

a.
$50,000.

b.
$500,000.

c.
$200,000.

d.
$100,000.

Answer 1

Reference: RIBO RIBACT Regulations

The correct answer is: $100,000.

Question 2

The RIBO Code of Conduct is stated in Ontario Regulation 991, Section 14. Indicate which one (1) of the following provisions is NOT contained in the Code.

Select one:

a.
To be competent to perform the services which the member undertakes on the client’s behalf

b.
To be both candid and honest when advising the member’s client

c.
To maintain a trust account for all trust money received

d.
Not to charge or accept any fee which is not fully disclosed prior to the service being rendered

Answer 2

Reference: RIBO RIBACT Regulations

The correct answer is: To maintain a trust account for all trust money received

Question 3

Which of the following actions are NOT prohibited under the RIB Act?

Select one:

a.
Giving a policyholder a box of chocolates at Christmas

b.
Offering a prospect tickets to a live theatre show if he or she purchases insurance from the broker

c.
Charging 10% less than the premium shown on the policy because the client can get it cheaper elsewhere

d.
All of the above

Answer 3

Reference: RIBO RIBACT Regulations

The correct answer is: Giving a policyholder a box of chocolates at Christmas

Question 4

The regulations under the RIB Act require an insurance broker to provide evidence that insurance has been placed on behalf of a client by

Select one:

a.
a policy of insurance to the member of the public for whom he/she acts within five (5) days of receiving it from the insurer.

b.
a policy of insurance to the member of the public for whom he/she acts within thirty (30) days after placing the insurance.

c.
the member of the public for whom he/she acts with a receipt for the premium or portion thereof which has been paid and which indicates the date the policy is effective.

d.
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.

Answer 4

Reference: RIBO RIBACT Regulations

The correct answer is: 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.

Question 5

The RIB Act requires that evidence of coverage must be provided to the buyer within which of the following periods?

Select one:

a.
Within 21 days

b.
Within 30 days

c.
Within 14 days

d.
Within 72 hours

Answer 5

Reference: RIBO RIBACT Regulations

The correct answer is: Within 21 days

Question 6

What is the minimum age that one can become registered under the RIB Act?

Select one:

a.
25

b.
21

c.
18

d.
19

Answer 6

Reference: RIBO RIBACT Regulations

The correct answer is: 18

Question 7

An individual is required to register as an insurance broker if he/she

Select one:

a.
transacts insurance, for remuneration, solely on behalf of one insurer and the Facility Association.

b.
recommends to friends that they purchase from a specific insurer because of the good deal they obtained for insurance.

c.
acts solely as a reinsurance broker.

d.
provides, for compensation, risk management and loss prevention services on behalf of another.

Answer 7

Reference: RIBO RIBACT

The correct answer is: provides, for compensation, risk management and loss prevention services on behalf of another.

Question 8

An insurance broker whose registration is restricted to acting under supervision may perform which of the following?

Select one:

a.
Operate a trust account for insurance premiums

b.
Solicit insurance from members of the public anywhere in Ontario

c.
Be a “Principal Broker” as defined in Ontario Regulation 991

d.
Prepare and sign RIBO Position reports on behalf of the insurance broker by whom he/she is employed

Answer 8

Reference: RIBO RIBACT By-Laws

The correct answer is: Solicit insurance from members of the public anywhere in Ontario

Question 9

If information on the latest filed application to RIBO becomes obsolete, the member must file a notice correcting the information

Select one:

a.
within 14 days of the change.

b.
within 6 months of the change.

c.
within 30 days of the change.

d.
within 12 months of the change.

Answer 9

Reference: RIBO RIBACT By-Laws

The correct answer is: within 30 days of the change.

Question 10

When do all RIBO registrations expire?

Select one:

a.
September 30

b.
December 31

c.
October 1

d.
August 31

Answer 10

Reference: RIBO RIBACT By-Laws

The correct answer is: September 30