RIBO Practice Exam 6

Question 1

Which type of risk can be insured?

Select one:

a.
Moral risk

b.
Pure risk

c.
Speculative risk

d.
Assumed risk

Answer 1

Reference: C81 - Study 1 - LO1

The correct answer is: Pure risk

Question 2

What is the definition of risk?

Select one:

a.
The chance of a hazard

b.
The probability of profit

c.
The chance of loss

d.
The probability of an event

Answer 2

Reference: C81 - Study 1 - LO1

The correct answer is: The chance of loss

Question 3

Q: What does the term “moral hazard” refer to?

Select one:

a.
The location of the property insured

b.
The personal character of the insured

c.
The physical condition of the property insured

d.
A life insurance risk

Answer 3

Reference: C81 - Study 1 - LO2

The correct answer is: The personal character of the insured

Question 4

What is a peril?

Select one:

a.
An event that may cause a loss

b.
A type of speculative risk

c.
An event that will prevent a loss

d.
A type of pure risk

Answer 4

Reference: C81 - Study 1 - LO2

The correct answer is: An event that may cause a loss

Question 5

Q: Insurance is based on the existence of which of the following?

Select one:

a.
Risk

b.
Loss

c.
Indemnity

d.
Consideration

Answer 5

Reference: C81 - Study 1 - LO1

The correct answer is: Risk

Question 6

Q: What is proximate cause?

Select one:

a.
The first cause in a chain of events that results in a loss

b.
The cause that sets a remote cause of loss into motion

c.
The suspected cause of a loss

d.
The immediate and effective cause of loss

Answer 6

Reference: C81 - Study 1 - LO3

The correct answer is: The immediate and effective cause of loss

When a loss occurs, the peril that was the proximate cause of the loss must be one of the perils insured for the damage to be recovered from the insurer. Proximate cause is the immediate and effective cause of the loss, which in a chain or circumstances leads naturally and directly to the loss.

Question 7

What is a contract?

Select one:

a.
A promise to indemnify the client in the event of a loss

b.
A bond that is required to be part of an insurance pool

c.
A legal agreement of the arrangements between the insured and the insurer

d.
A document that provides evidence of the insurance policy

Answer 7

A legal agreement of the arrangements between the insured and the insurer

Question 8

Why do individuals purchase insurance?

Select one:

a.
Because it is government mandated for all

b.
To hold their funds as an alternative to a savings account

c.
To protect themselves from being financially penalized if something happens to their property

d.
As an investment with plans to gain in their financial future

Answer 8

Reference: C81 - Study 2 - LO1

The correct answer is: To protect themselves from being financially penalized if something happens to their property

Question 9

What is the primary function of insurance?

Select one:

a.
Providing employment, directly and indirectly, in the industry

b.
A method of profiting after a loss occurs

c.
Protecting assets and securing credit

d.
A method of sharing the losses of a few people among the many

Answer 9

Reference: C81 - Study 2 - LO2

The correct answer is: A method of sharing the losses of a few people among the many

Question 10

What is the class of business that is NOT directly concerned with life or fire insurance?

Select one:

a.
Marine

b.
Crime

c.
Casualty

d.
Cyber

Answer 10

Casualty

• general insurance
• casualty refers to bonds, prime policy
• casualty does not concern life or fire

Casualty is more applicable to bodily and personal injury, but can also include crime, robbery, burglary, aviation, or surety bonding.

Question 11

What type of insurance would cover losses arising from libel and slander?

Select one:

a.
Liability insurance

b.
Legal expense

c.
Surety bonds

d.
Crime insurance

Answer 11

Reference: C81 - Study 2 - LO3

The correct answer is: Liability insurance

Liability insurance covers personal liability and liability resulting from ownership of premises, operations, products, rendering of professional services, libel, slander, and virtually any other situation where one individual might hold another responsible for some action or lack of action that resulted in injury or damage to that individual or that person’s property.

Question 12

Q: Which one (1) of the following statements is TRUE about insurers?

Select one:

a.
A stock company is owned jointly by the insureds.

b.
The Facility Association is an insurance cooperative.

c.
Mutual insurance companies are NOT required to be licensed by the Department of Insurance

d.
Lloyd’s of London is NOT an insurance company

Answer 12

Reference: C81 - Study 3 - LO1

The correct answer is: Lloyd’s of London is NOT an insurance company

Question 13

What is the role of the technical services division of an insurer?

Select one:

a.
Make loss prevention recommendations and to recommend payment of losses

b.
To make final decisions with respect to rates and to determine which classes of insurance to write

c.
Assist in rating, to decide which risk to insure and to investigate suspicious losses

d.
Inspect and report on special hazards, assist in rating and to make loss prevention recommendations

Answer 13

Reference: C81 - Study 3 - LO2

The correct answer is: Inspect and report on special hazards, assist in rating and to make loss prevention recommendations

Question 14

What is treaty insurance?

Select one:

a.
Reinsurance in which an agreement between the insurer and the reinsurer requires the insurer to submit every risk to the reinsurer for approval

b.
Insurance that is placed on an individual case by case basis

c.
Insurance that is placed on a facultative excess basis

d.
Reinsurance in which an agreement between the insurer and the reinsurer provides for automatic reinsurance without the insurer having to submit every risk to the reinsurer

Answer 14

Reference: C81 - Study 3 - LO3

The correct answer is: Reinsurance in which an agreement between the insurer and the reinsurer provides for automatic reinsurance without the insurer having to submit every risk to the reinsurer

Question 15

What is the role of a broker?

Select one:

a.
To act on behalf of an insured in placing business with insurance companies

b.
To review loss statistics and establishes rate by each coverage

c.
To make recommendations about the payment of benefits

d.
To approve changes to standardized application forms for the industry

Answer 15

Reference: C81 - Study 4 - LO1

The correct answer is: To act on behalf of an insured in placing business with insurance companies

Question 16

Which type of distribution method sells policies on behalf of several insurers?

Select one:

a.
Independent brokerage system
Independent brokerage or agency systems represent multiple insurers.

b.
Direct writing companies

c.
Exclusive agency companies

d.
Independent general agents

Answer 16

Reference: C81 - Study 4 - LO1

The correct answer is: Independent brokerage system

Question 17

Q: A cover note is defined as which of the following?

Select one:

a.
The document evidencing the commission rate allowed the agent for having produced the business

b.
A notice and confirmation to the insurer that it has been bound to a contract

c.
An attachment to a policy that overrules any wording in the policy inconsistent with it

d.
That portion in the insuring agreement of a policy that lists the perils insured against

Answer 17

Reference: C81 - Study 4 - LO2

The correct answer is: A notice and confirmation to the insurer that it has been bound to a contract

When agents and brokers bind coverage, they should prepare a binder right away and send a copy to the insurer. A copy of the binder should also be given to the insured. It will serve as a written binder. A cover note is a document with insurance or the insurance protection provided.

Question 18

Q: What is the purpose of a contract between an insurer and an insurance broker (company/broker agreement)?

Select one:

a.
To formalize in writing what the broker and the insurer expect from each other.

b.
To authorize the broker to operate a Trust Account.

c.
To meet the requirements of RIBO.

d.
To satisfy the requirements of the Department of Insurance.

Answer 18

Reference: C81 - Study 4 - LO2

The correct answer is: To formalize in writing what the broker and the insurer expect from each other.

Insurance intermediary is authorized to represent an insurer in setting up insurance policies for third parties. Governed by the law of agency, insurance agents and brokers must comply with the terms of the agency contract between them and the insurer(s) they represent.

Question 19

What is an endorsement?

Select one:

a.
An amount of the loss that the insured must pay before the insurer will pay the claim

b.
A clause requiring the insured to bear a portion of every loss if there is underinsurance

c.
A discount applied to the policy premium

d.
An attachment to the policy that varies the terms of the contract

Answer 19

Reference: C81 - Study 5 - LO6

The correct answer is: An attachment to the policy that varies the terms of the contract

An endorsement is an amendment added to a written document, altering its provisions.

Question 20

What forms the basis of most insurance contracts?

Select one:

a.
Subrogation

b.
Contribution

c.
Prevention of Risk

d.
Indemnity

Answer 20

Reference: C81 - Study 5 - LO3

The correct answer is: Indemnity

Question 21

Q: The legal process by which an insurer, who has paid a loss, pursues any rights of recovery against a responsible third party is which of the following?

Select one:

a.
Indemnification

b.
Consideration

c.
Subrogation

d.
Contribution

Answer 21

Reference: C81 - Study 5 - LO4

The correct answer is: Subrogation

Question 22

Q: Which of the following parties would be considered to have an insurable interest?

Select one:

a.
A fur shop owner who has a mink stolen while it is in his/her care, custody and control.

b.
A grandson who is going to inherit property sometime in the future.

c.
A member of a golf club.

d.
A prospective purchaser of an automobile.

Answer 22

Reference: C81 - Study 5 - LO2

The correct answer is: A fur shop owner who has a mink stolen while it is in his/her care, custody and control.

Question 23

Q: With regards to contract law, a “meeting of the minds” is necessary to fulfill which element of a contract?

Select one:

a.
Agreement

b.
Genuine intention

c.
Consideration

d.
Legal capacity

Answer 23

Reference: C81 - Study 5 - LO1

The correct answer is: Agreement

Question 24

Q: Complete the sentence: The insured’s three-year-old sofa was destroyed by fire. Establishing the cost of a new similar sofa and then deducting the accumulated depreciation will determine the ___.

a.
Replacement cost

b.
Coinsurance penalty

c.
Purchase price new

d.
Actual cash value

Answer 24

Reference: C81 - Study 5 - LO3

The correct answer is: Actual cash value

Question 25

An insurer believes an insured has deliberately misrepresented a risk which it would not have written had the insurer known the true facts. The premium has been paid in full and the policy has been in force for three months. In voiding the policy the insurer would

Select one:

a.
Refund the unearned premium as to the property to which the misrepresentation was made.

b.
Refund the entire premium as to the property of which the misrepresentation was made.

c.
Offer no refund with respect to any of the property.

d.
Refund the excess over the minimum for the entire policy.

Answer 25

Refund the entire premium as to the property of which the misrepresentation was made.

Question 26

Q: The deductible clause in an insurance policy

Select one:

a.
Specified the amount in excess of which an insurer will pay a loss.

b.
Always disappears when the loss exceeds a specified amount.

c.
Is usually found in valued policies.

d.
Is waived if the risk is insured to value.

Answer 26

Reference: C81 - Study 5 - LO3

The correct answer is: Specified the amount in excess of which an insurer will pay a loss.

Question 27

Why is a written application preferred over an oral application?

Select one:

a.
It increases delays and minimizes customer service

b.
It is an effective way to comply with legal requirements

c.
It is an important factor to comply with licensing requirements

d.
It provides documented proof of the questions asked by an intermediary

Answer 27

Reference: C81 - Study 6 - LO1

The correct answer is: It provides documented proof of the questions asked by an intermediary

Question 28

Why do insurers ask for prior insurance on an application?

Select one:

a.
Confirm loss history and identify the loss payees

b.
Confirm claim history and check for any lienholders

c.
Identify previous declinations or cancellations and the amount of coverage

d.
Confirm loss history and identify any gaps in coverage

Answer 28

Reference: C81 - Study 6 - LO2

The correct answer is: Confirm loss history and identify any gaps in coverage

Question 29

Q: What is pure premium?

Select one:

a.
Rate or unit of premium required

b.
Total premium required by the insurance company

c.
Premium required to meet the inflated anticipated losses

d.
Premium required to meet the losses after that occurs

Answer 29

Reference: C81 - Study 6 - LO3

The correct answer is: Premium required to meet the losses after that occurs

Portion of the total premium that is needed to pay expected losses. It does not take into account money needed for company expenses.

Question 30

A liability policy, written on a claims made basis, will respond to which type of injury or damage?

Select one:

a.
Those that occur during the policy term but are not discovered until after expiry

b.
Those that are reported during the term because they are expected, but do not actually occur until after expiry

c.
Those that occur to the policy inception and are reported during the policy period

d.
Those that began during the policy term and continued after expiry when the damage was discovered

Answer 30

Reference: C81 - Study 7 - LO1

The correct answer is: Those that occur during the policy term but are not discovered until after expiry

Coverage on these policies is triggered when the third party first makes a claim against the insured which maybe after the policy term has expired.

Question 31

Q: An insured owns a building valued at $200,000 and insures it for the same amount. If the policy is subject to an 80% co-insurance clause how much would the insurer pay in the event of a $100,000 loss?

Select one:

a.
$125,000

b.
$100,000

c.
$160,000

d.
$180,000

Answer 31

Reference: C81 - Study 7 - LO2

The correct answer is: $100,000

Question 32

Q: A liability policy, written on a claims made basis, will respond to which type of injury or damage?

Select one:

a.
Those that occur during the policy term but are not discovered until after expiry

b.
Those that are reported during the term because they are expected, but do not actually occur until after expiry

c.
Those that occur to the policy inception and are reported during the policy period

d.
Those that began during the policy term and continued after expiry when the damage was discovered

Answer 32

Reference: C81 - Study 7 - LO1

The correct answer is: Those that occur during the policy term but are not discovered until after expiry

Coverage on these policies is triggered when the third party first makes a claim against the insured which maybe after the policy term has expired.

Question 33

Q: Where there is a co-insurance clause in a replacement cost policy, it is necessary to determine

Select one:

a.
The actual cash value of the property.

b.
The original cost of the policy.

c.
The amount which could be obtained for the property in a sale.

d.
The replacement cost of the property.

Answer 33

Reference: C81 - Study 7 - LO2

The correct answer is: The replacement cost of the property.

First step is to calculate the amount of insurance needed to satisfy the percentage requirement. This is the minimum amount of insurance required.

Question 34

Q: In arranging a contract of insurance, an agent or broker is always required to do which of the following?

Select one:

a.
Pass on to the Insurer all relevant information whether requested or not

b.
Have an application signed

c.
Disclose the commission on every policy

d.
Collect the full premium at the time of the inception date

Answer 34

Reference: C81 - Study 8 - LO2

The correct answer is: Pass on to the Insurer all relevant information whether requested or not

Brokers and agents have a duty to insurers to be honest and trustworthy; stay within the terms of the broker agreements; and disclose all relevant material facts to the insurer; even if it will make playing the risk difficult.

Question 35

Q: In which case would assignment of an insurance policy be automatic?

Select one:

a.
A sells cottage to B

b.
A goes bankrupt and B is appointed as trustee in bankruptcy

c.
A gives cottage to B

d.
None of the above

Answer 35

Reference: C81 - Study 9 - LO4

The correct answer is: A goes bankrupt and B is appointed as trustee in bankruptcy

Question 36

In which case would assignment of an insurance policy be automatic?

Select one:

a.
A sells cottage to B

b.
A goes bankrupt and B is appointed as trustee in bankruptcy

c.
A gives cottage to B

d.
None of the above

Answer 36

Reference: C81 - Study 9 - LO4

The correct answer is: Giving the insured 15 days notice by registered mail and refunding the unearned premium.

When the insurer cancels the policy, it must notify the insured 15 days by registered mail or 5 days hand delivered and refund on a pro rata basis (refund unearned premium with no penalty).

A goes bankrupt and B is appointed as trustee in bankruptcy

Question 37

What does the Personal Information Protection and Electronic Documents Act (PIPEDA) govern?

Select one:

a.
How insurance documents are completed

b.
The personal information people can share with insurers

c.
The collection and use of personal information

d.
The questions asked on an insurance application

Answer 37

Reference: C81 - Study 9 - LO5

The correct answer is: The collection and use of personal information

The Personal Information Protection and Electronic Documents Act (PIPEDA) governs the collection and use of personal information.

Question 38

What coverage is provided by a basic homeowners policy?

Select one:

a.
Named-perils coverage on the building and all-risk coverage for personal property and additional living expenses.

b.
All-risks coverage with listed exclusions for buildings, personal property and additional living expenses.

c.
Named-perils coverage for buildings, personal property, and additional living expenses.

d.
All-risks coverage for buildings, personal property and additional living expenses.

Answer 38

Reference: C82 - Study 4 - LO3

The correct answer is: Named-perils coverage for buildings, personal property, and additional living expenses.

Basic home insurance provides named-perils coverage for personal property including: dwelling buildings, detached private structures, personal property and additional living expenses.

Question 39

What coverage is provided by a basic homeowners policy?

Select one:

a.
Named-perils coverage on the building and all-risk coverage for personal property and additional living expenses.

b.
All-risks coverage with listed exclusions for buildings, personal property and additional living expenses.

c.
Named-perils coverage for buildings, personal property, and additional living expenses.

d.
All-risks coverage for buildings, personal property and additional living expenses.

Answer 39

Reference: C82 - Study 5 - LO1

The correct answer is: The dwelling location

Named-perils coverage on the building and all-risk coverage for personal property and additional living expenses.

Question 40

How does an insured obtain liability coverage for their cottage?

Select one:

a.
Extend it from their homeowners policy

b.
Add an umbrella liability policy

c.
Purchase a seasonal package policy

d.
Increase their current liability limit

Answer 40

Reference: C82 - Study 5 - LO3

The correct answer is: Extend it from their homeowners policy

Question 41

Q: The Voluntary Payment for Damage to Property coverage under the personal liability policy responds to which of the following?

Select one:

a.
Direct damage caused by the insured to property of others when the insured is responsible for such damage

b.
Property damage caused intentionally by any minor included as an insured under Section 2 of the policy

c.
Direct damage caused by the insured to property of others rented by the insured, or belonging to tenants of the insured

d.
Unintentional direct damage caused by the insured to property of others regardless of legal liability

Answer 41

Reference: C82 - Study 7 - LO2

The correct answer is: Unintentional direct damage caused by the insured to property of others regardless of legal liability

Question 42

Q: A Commercial General liability policy covers which of the following?

Select one:

a.
Premises and operations

b.
Products and completed operations

c.
Elevators and escalators

d.
All of the above

Answer 42

Reference: C82 - Study 7 - LO1

The correct answer is: All of the above

Business Liability exposures vary enormously, as do the activities of professional and others providing services to the public.

Question 43

Q: Fidelity insurance is designed to protect the insured against which of the following?

Select one:

a.
Robbery outside the premises

b.
Burglary of a safe

c.
Dishonest acts of employees

d.
Forgery of cheques

Answer 43

Reference: C82 - Study 6 - LO5

The correct answer is: Dishonest acts of employees

Fidelity protects the employer against loss of money, securities, or other property arising from the fraudulent or dishonest act of a single employee or multiples employees, whether the loss results from the employee acting alone or in collusion with others.

Question 44

Q: When a loss occurs under the basic fire insurance policy, the amount payable is the least of three amounts. Which of the following is NOT taken into consideration?

Select one:

a.
Original cost of the property

b.
Actual cash value

c.
Sum insured

d.
The Insured’s interest in the property

Answer 44

Reference: C82 - Study 4 - LO4

The correct answer is: Original cost of the property

Additional Conditions of policy - Basis of Settlement reinforces insurable interest, ACV and insurable interest.

Question 45

Q: Which of the following correctly completes the sentence: The Extended Coverage endorsement does NOT __________________.

Select one:

a.
Add insurance against additional perils

b.
lncrease the amount of insurance

c.
Apply to property already insured against fire

d.
Broaden the coverage for lightning damage

Answer 45

Reference: C82 - Study 4 - LO1

The correct answer is: lncrease the amount of insurance

Extended coverage endorsement was developed to supplement the fire policy and cover losses from the additional perils.

Question 46

Q: Which of the following items under a Homeowners Policy would have a limit applied if it is stolen, but NOT if it is damaged in an explosion?

Select one:

a.
Garden tractors

b.
Watercraft

c.
Computer software

d.
Jewellery

Answer 46

Reference: C82 - Study 4 - LO2

The correct answer is: Jewellery

Question 47

Q: Freezer Foods coverage provides for payment of loss caused by spoilage of frozen foods contained in your food freezer on your premises.

Select one:

a.
It covers actual cash value at current market prices up to $5,000 less deductible.

b.
It is provided on an “All Risks” basis.

c.
It excludes loss due to interruption of Hydro Service.

d.
It covers only loss caused by mechanical breakdown of the freezer or outside power interruption.

Answer 47

Reference: C82 - Study 4 - LO2

The correct answer is: It covers only loss caused by mechanical breakdown of the freezer or outside power interruption.

Question 48

Q: Improvements and Betterments made to a Condominium Unit by its owner are insured

Select one:

a.
Under a blanket feature of the Condominium Corporation’s Master Policy.

b.
Under coverage A3 of the individual Unit Owners Comprehensive Policy.

c.
Under Building coverage of the Condominium Corporation’s Master Policy.

d.
Under Coverage A1 of the Unit Owners Comprehensive Policy

Answer 48

Reference: C82 - Study 5 - LO2

The correct answer is: Under coverage A3 of the individual Unit Owners Comprehensive Policy.

Question 49

Q: Loss or damage caused by earthquake is

Select one:

a.
A coverage which may be added to a property policy for an additional premium.

b.
Not insurable because it is considered an “act of God”.

c.
One of the insured perils usually included in a property insurance policy.

d.
Not available under a property insurance policy.

Answer 49

Reference: C82 - Study 4 - LO6

The correct answer is: A coverage which may be added to a property policy for an additional premium.

Question 50

Q: S.P.F. #6, Non-Owned Automobile Insurance Form is designed to protect

Select one:

a.
An employer whose employees drive his/her vehicles which they do not own.

b.
An employee who drives vehicles owned by his/her employer.

c.
An employer whose employees drive their own vehicles in the course of his/her business.

d.
An employer who occasionally drives one of his/her employees automobiles

Answer 50

Reference: C82 - Study 7 - LO4

The correct answer is: An employer whose employees drive their own vehicles in the course of his/her business.

Question 51

Q: Which one (1) is NOT true of the Replacement Cost Coverage under a Homeowners Comprehensive policy?

Select one:

a.
Payment will be made without deduction for depreciation.

b.
Replacement cost coverage for contents must be endorsed on to the policy.

c.
Replacement cost coverage applicable to both the building and personal belongings insured under the policy is basic coverage.

d.
Replacement must be made with property of similar quality.

Answer 51

Reference: C82 - Study 4 - LO4

The correct answer is: Replacement cost coverage applicable to both the building and personal belongings insured under the policy is basic coverage.

Replacement cost is afforded to both building and contents on the Comprehensive Policy.

Question 52

Q: Which one (1) of the following classes of insurance is intended to indemnify a business for loss of income due to fire damage to building, stock and equipment?

Select one:

a.
Property Insurance.

b.
Accident and Sickness Insurance.

c.
Business Interruption Insurance.

d.
Liability Insurance.

Answer 52

Reference: C82 - Study 6 - LO4

The correct answer is: Business Interruption Insurance.

Business Interruption Insurance - one replaces income lost because of an interruption and the other reimburses the extra expenses that may be incurred to keep a business running despite a loss.

Question 53

Q: Your client, Anna Thompson recently lost her husband. She has decided to sell her home and purchase a Condominium Unit. She is inquiring what changes she will need to make to her current Comprehensive Homeowners Policy. You would advise

Select one:

a.
The Homeowners policy must be converted to a Condominium policy, which allows for extra coverage she will require as a Unit Owner.

b.
Endorse the change of address, delete the building and liability coverage, keeping the Homeowners’ Policy because the unit and liability are covered by the Condominium Corporations master insurance policy.

c.
Any improvements made to the unit do not need to be included in her policy because they are insured by the Condominium Corporations master insurance policy.

d.
As the owner of the unit, she will be eligible for special rates on her Homeowner’s policy which will simply be transferred to her new address.

Answer 53

Reference: C82 - Study 5 - LO2

The correct answer is: The Homeowners policy must be converted to a Condominium policy, which allows for extra coverage she will require as a Unit Owner.

Condominiums are a form of home ownership that allows the purchaser to buy the home without having to buy the building.

Question 54

Q: Your clients advise you they have just purchased a set of matching antique candlesticks, valued at $2,500 each. They have Canadian historical significance and they wish to insure them specifically. You would recommend they

Select one:

a.
Increase the limit of their contents coverage under their Homeowners policy.

b.
Insure the items by means of a Fine Arts coverage endorsement added to the Homeowner policy.

c.
Add Personal Property Replacement Cost coverage to their Homeowners policy.

d.
Purchase a Personal Effects Floater to cover the items.

Answer 54

Reference: C82 - Study 4 - LO5

The correct answer is: Insure the items by means of a Fine Arts coverage endorsement added to the Homeowner policy.

Fine Arts floater is intended for such items as sculptures, painting, etching, pictures, china, antique furniture. Under a homeowners, tenants or condo they are subject to restricted limits and/or restricted perils. Coverage under the floater is on a all-risks basis and no deductible applies. Since property is insured on a valued basis, valuations done by qualified experts are mandatory.

Question 55

Q: Your insured advises he and his wife are moving to another city and intend to place their furniture in storage while they look for a new apartment. They ask for advice about coverage under the Tenants Comprehensive policy. You advise them

Select one:

a.
Their policy will automatically cover their property in storage.

b.
The property at the warehouse cannot be insured.

c.
Their policy must be cancelled and re-written to accommodate the changed circumstances.

d.
Their Tenants Comprehensive policy will cover all their property in the storage warehouse for 30 days but only against theft after that period.

Answer 55

Reference: C82 - Study 4 - LO2

The correct answer is: Their Tenants Comprehensive policy will cover all their property in the storage warehouse for 30 days but only against theft after that period.

Question 56

Q: Your insured has a Condominium Unit Owners Comprehensive Policy. While smoking in bed, he/she negligently causes a fire in his/her unit. The fire spreads to the adjoining unit and the occupant is overcome by smoke and dies. Under which section of the policy would the insurer respond if a claim were made by the relatives of the deceased person?

Select one:

a.
Voluntary Medical Payments (Coverage F)

b.
Personal Liability Coverage (Coverage E)

c.
Loss Assessment (Coverage I)

d.
Loss Assessment (Coverage A2).

Answer 56

Reference: C82 - Study 7 - LO2

The correct answer is: Personal Liability Coverage (Coverage E)

Personal Liability coverage (coverage E) Personal Liability - legal liability arising out of the insured’s personal actions anywhere in the world.

Question 57

Q: Your insured owns a summer residence with a detached garage and tool shed. The property is insured for Fire & Extended Coverage Perils under a Seasonal Dwelling form. What is the maximum amount of insurance that could apply if one of these detached structures is destroyed by fire?

Select one:

a.
The actual cash value of the destroyed structure without reference to the other structures.

b.
That proportion of 10% of the amount of insurance on the dwelling building that the value of the destroyed structure bears to the total value of both structures.

c.
10% of the amount of insurance on the dwelling.

d.
10% of the amount of insurance on the dwelling divided by the number of structures.

Answer 57

Reference: C82 - Study 5 - LO3

The correct answer is: That proportion of 10% of the amount of insurance on the dwelling building that the value of the destroyed structure bears to the total value of both structures.

That proportion of 10% of the amount of insurance on the dwelling building that the value of the destroyed structure bears to the total value of both structures.

They will have a limited peril.

Seasonal dwelling wordings provide a limit of insurance for outbuildings based on a percentage of the building amount, but this limit is part of, not in additional to, the amount of insurance on the cottage. The policy has a pro rata distribution clause usually at 10%.

Question 58

To repair damage to service lines, the insured’s driveway and some adjacent bushes must be torn up and replaced. Your client wants to know if this expense is covered under the service line endorsement?

Select one:

a.
The cost to tear up the driveway and to repair the service line is covered, but not the cost to replace the driveway.

b.
Costs associated with replacing the driveway are covered under the service line coverage.

c.
Costs associated with repairing the service line are covered but not the driveway.

d.
The cost to remove the bushes is covered but not the cost to replace the driveway.

Answer 58

Reference: C82 - Study 4 - LO6

The correct answer is: Costs associated with replacing the driveway are covered under the service line coverage.

Replacing landscaping removed or damaged during the repairs, such as the removal of trees and bushes or replacing the driveway is covered under the service line endorsement.

Question 59

For coverage to apply, the cause of loss related to a sewer backup can NOT be which of the following?

Select one:

a.
Heavy rainfall overwhelming sewer systems.

b.
Lack of maintenance.

c.
Blockage of city sanitary main.

d.
Tree roots blocking sewage systems.

Answer 59

Reference: C82 - Study 4 - LO6

The correct answer is: Lack of maintenance.

Sewer backup endorsements provide coverage for loss or damage due to the backing up of sewer drains within the dwelling. However, damage that results from lack of maintenance is excluded.

Question 60

Identity theft may also provide what other services that help to lessen the effects of identity fraud?

Select one:

a.
Internet monitoring

b.
Counseling services

c.
Credit bureau monitoring

d.
Home security monitoring

Answer 60

Reference: C82 - Study 4 - LO6

The correct answer is: Credit bureau monitoring

To lessen the effects of identity fraud, identity theft coverage may provide services such as credit bureau monitoring, credit bureau reports and access to a case worker to help restore an insured’s finances and personal information.

Question 61

Who is responsible for approving Ontario’s automobile insurance application form?

Select one:

a.
The Facility Association

b.
The Insurance Act

c.
FSCO/FSRA

d.
Federal Department of Insurance

Answer 61

Reference: OAS - Study 2 - LO1

The correct answer is: FSCO/FSRA

In Ontario, the automobile insurance application must be approved by FSCO/FSRA, who also approves policy and claims forms.

Question 62

Who scrutinizes a risk and decides if it is eligible for insurance?

Select one:

a.
Brokers/agents

b.
Actuaries

c.
Adjusters

d.
Underwriters

Answer 62

Reference: OAS - Study 2 - LO3

The correct answer is: Underwriters

To underwrite a risk includes scrutinizing a risk and then deciding on its eligibility for insurance. Underwriting is completed by especially skilled people called underwriters.

Question 63

What are two types of endorsements?

Select one:

a.
Those that cancel or reinstate the policy

b.
Those that add or delete Statutory Conditions

c.
Those that extend coverage or restrict coverage

d.
Those that extend policy term or restrict policy term

Answer 63

Reference: OAS - Study 2 - LO3

The correct answer is: Those that extend coverage or restrict coverage

Endorsements can either extend coverage or restrict coverage. Extensions—are used for additional coverage the producer has recommended and the client has purchased; for example, family protection endorsement. Agreements or restrictions—are required by the insurer based on acceptance and rating manuals.

Question 64

Who carries more risk, taxis or ridesharing services?

Select one:

a.
Taxis as they are driving in unfamiliar neighbourhoods

b.
Ridesharing as they are likely to be engaging in this as their fulltime livelihood

c.
Ridesharing as they are driving in unfamiliar neighbourhoods

d.
Taxis as they are likely to be engaging in this as their fulltime livelihood

Answer 64

Reference: OAS - Study 3 - LO2

The correct answer is: Taxis as they are likely to be engaging in this as their fulltime livelihood

Ridesharing is more risk than a daily commuter but less risk than a taxi driver who has this as their fulltime employment.

Question 65

How is negligence explained?

Select one:

a.
As the failure to do something a reasonable person would do

b.
As permitting another licenced driver who is not a named insured to operate an automobile

c.
As the failure to do something a reasonable person would do or doing something that a reasonable person would not do

d.
As doing something a reasonable person would not do

Answer 65

Reference: OAS - Study 4 - LO1

The correct answer is: As the failure to do something a reasonable person would do or doing something that a reasonable person would not do

Negligence is failure to use the degree of care expected from a reasonable and prudent person. This means failing to do something that a reasonable person would do or doing something that a reasonable person would not do.

Question 66

In Ontario, which type of loss is NOT covered under Accident Benefits?

Select one:

a.
Educational expenses

b.
Pain and suffering

c.
Loss of income

d.
Funeral

Answer 66

Reference: OAS - Study 4 - LO3

The correct answer is: Pain and suffering

Pain and suffering is not payable under the accident benefits coverage and is only available as a result of injuries that are sever enough to meet verbal threshold, and would be paid out under the at-fault party’s third party liability limits if the insured was successful in a suit.

Question 67

Which provision requires an insurance company to pay a third-party claimant even if the insured has contravened a condition of the automobile insurance policy?

Select one:

a.
Absolute liability

b.
Accident benefits

c.
Requirements after loss

d.
Material change in risk

Answer 67

Reference: OAS - Study 4 - LO4

The correct answer is: Absolute liability

Question 68

Who is the first payor of accident benefits as outlined by the SABS priority of payments?

Select one:

a.
The driver’s insurer.

b.
All insurers of those involved in the accident will provide benefits equally.

c.
The injured person’s own insurer.

d.
The at-fault party’s insurer.

Answer 68

Reference: OAS - Study 5 - LO1

The correct answer is: The injured person’s own insurer.

Ontario’s SABS Priority of Payment sets out that all persons must claim accident benefits from their own automobile insurer.

Question 69

What is the income replacement benefit deductible?

Select one:

a.
$185

b.
104 weeks

c.
$400

d.
One week

Answer 69

Reference: OAS - Study 5 - LO2

The correct answer is: One week

The IRB is not payable for the first week of the disability. This is considered the deductible.

Question 70

If an insured has an accident outside of Ontario would they still go to their own policy for their accident benefit coverage?

Select one:

a.
The insured would be able to collect accident benefits coverage up to the limits available in the jurisdiction where the loss occurred.

b.
The insured would have a choice of two types of benefits, either Ontario, or the jurisdiction where the loss occurred.

c.
Yes, the insured would still use the accident benefits coverage from their Ontario policy.

d.
In Canada yes, but not necessarily in the United States, depending on location.

Answer 70

Reference: OAS - Study 5 - LO4

The correct answer is: The insured would have a choice of two types of benefits, either Ontario, or the jurisdiction where the loss occurred.

Ontario residents injured in automobile accidents outside Ontario, anywhere in the United States or Canada have a choice of which accident benefits that they access,

Question 71

Under what circumstance would OPCF 43—Removing Depreciation Deduction endorsement be added to an automobile policy?

Select one:

a.
Insured inherits a classic vehicle and adds this endorsement to the policy to protect the appreciation value of this automobile.

b.
Insured purchases a new vehicle and wants to protect the full value of the vehicle for a prescribed period of time.

c.
Insured purchases an ATV and wants to confirm that, in the event of a total loss, there would be no depreciation applied to the claim.

d.
Insured purchases a used vehicle and wants to confirm that in the event of a total loss there would be no depreciation applied to the claim.

Answer 71

Reference: OAS - Study 10 - LO4

The correct answer is: Insured purchases a new vehicle and wants to protect the full value of the vehicle for a prescribed period of time.

When the endorsement OPCF 43 is purchased, the insurer waives the application of depreciation for the repair or total loss of the insured vehicle should it be damaged by an insured peril. The waiver applies for a specified time after purchase, when the vehicle is purchased new, and the insured is the original owner.

Question 72

Q: If there has been a material misrepresentation on an automobile policy, the Insurer is NOT required to pay which benefit?

Select one:

a.
Income Replacement benefits

b.
Death or Funeral benefits

c.
Attendant Care benefits

d.
Any of the above

Answer 72

Reference: OAS - Study 5 - LO3

The correct answer is: Income Replacement benefits

The insurer will not pay benefits for any person who has made or who knows of a material misrepresentation, which induced the insurer to enter into the contract of insurance; or who intentionally failed to notify the insurer of a change in the risk material to the contract.

Question 73

Q: After the theft of a vehicle, when would the Loss of Use section begin reimbursement?

Select one:

a.
72 hours after the theft has been reported to the insurer or the police.

b.
24 hours after the theft has been reported to the insurer.

c.
48 hours after the theft has been reported to the insurer or the police.

d.
24 hours after the theft has been reported to the police.

Answer 73

Reference: OAS - Study 8 - LO3

The correct answer is: 72 hours after the theft has been reported to the insurer or the police.

Automatic coverage for replacement transportation if the described automobile is stolen and the Insured has purchased all-perils, comprehensive, or specified perils coverage. The period of reimbursement does not begin until 72 hours after the police or the insurer has been notified. Therefore, to receive full benefits under this provision, the insured must give prompt notice of loss.

Question 74

Q: An insured parks his/her automobile at a shopping mall where it was damaged by another vehicle that flees the scene. There is no information about the other vehicle or driver. Which section of the with OAP 1 Owners policy with Liability, Accident Benefits, Comprehensive, and OPCF44 Family Protection Endorsement would cover the damage?

Select one:

a.
OPCF 44, Family Protection Endorsement

b.
Comprehensive

c.
There would be no coverage

d.
Liability

Answer 74

Reference: OAS - Study 6 - LO2

The correct answer is: There would be no coverage

There would be no coverage

• look up OAP 1 owners policy with liability

There is no coverage for physical damage to automobile if The third party is unidentified.

Question 75

Q: An insured with an existing OAP 1 Owners policy purchases a snowmobile and advises the insurance professional that his 14 year old son will also operate the vehicle. What should the insurance professional recommend to ensure there is coverage?

Select one:

a.
You will add OPCF 32, Recreational Vehicle Endorsement to provide coverage for underage operator.

b.
There is no coverage while the son is driving as he is under sixteen years of age and the coverage cannot be obtained.

c.
There would only be coverage for the physical damage to the snowmobile if the son were operating it.

d.
You will add the OPCF 44 Family Protection Endorsement, to cover any accident the son may have.

Answer 75

Reference: OAS - Study 10 - LO5

The correct answer is: You will add OPCF 32, Recreational Vehicle Endorsement to provide coverage for underage operator.

Question 76

Q: An intoxicated driver causes an accident and damages his vehicle, a second vehicle, and a telephone pole. Which of the following losses would NOT be covered?

Select one:

a.
Collision damage to his automobile.

b.
Medical and surgical expenses required as a result of injuries he sustains.

c.
Damage to the other automobile.

d.
Damage to a telephone pole.

Answer 76

Reference: OAS - Study 8 - LO2

The correct answer is: Collision damage to his automobile.

Question 77

Q: Complete the sentence. The Highway Victims Indemnity Fund _____________.

Select one:

a.
will not pay if the claimant was totally responsible for causing the accident.

b.
only pays for injury claims.

c.
only pays, in most provinces, if a judgment is obtained.

d.
is operated by all provincial governments.

Answer 77

Reference: OAS - Study 6 - LO1

The correct answer is: will not pay if the claimant was totally responsible for causing the accident.

Question 78

Q: Which of the following statements about Section 6 - Direct Compensation - Property Damage - of the OAP 1 Owners policy is INCORRECT?

Select one:

a.
The insured collects from his/her insurer even though the operator of the vehicle, with the insured’s consent, was not entirely at fault for the accident.

b.
The accident may occur anywhere in Canada and at least one of the other automobiles involved is insured under a motor vehicle liability policy.

c.
It covers damage to the automobile, certain unscheduled trailers, their equipment and contents caused by another automobile in Ontario, including their loss of use.

d.
The policy on the other vehicle must be issued by an Ontario licensed insurer or one that has filed with the Ontario Insurance Commission to provide this coverage.

Answer 78

Reference: OAS - Study 7 - LO2

The correct answer is: The accident may occur anywhere in Canada and at least one of the other automobiles involved is insured under a motor vehicle liability policy.

Direct Compensation applies if damage occurs in Ontario, and both vehicles are insured under automobile policies issued by licensed Insurers in Ontario or Insurers from outside Ontario which have signed agreements to be bound by this section.

Question 79

Q: Which of the following statements about Uninsured Automobile coverage is CORRECT?

Select one:

a.
Can cover accidental damage to the insureds automobile, provided the uninsured owner or driver of the other automobile is identified.

b.
Provides coverage for third parties if the insured causes bodily injury and has breached a statutory condition.

c.
Only covers bodily injury, but never property damage.

d.
Must be added by endorsement to OAP 1 Owners policy.

Answer 79

Reference: OAS - Study 1 - LO2

The correct answer is: Can cover accidental damage to the insureds automobile, provided the uninsured owner or driver of the other automobile is identified.

A form of insurance that pays for the bodily injury or property damaged caused by the owner or operator of an automobile that is not insured. Insurance is available to a policyholder and family members if they are injured by a hit-and-run motorist or driver who carries no liability insurance and is at fault for the accident.

Question 80

Q: All accidents and claims within which of the following time periods immediately preceding the application MUST be disclosed?

Select one:

a.
Six (6) years.

b.
Three (3) years.

c.
Four (4) years.

d.
Five (5) years.

Answer 80

Reference: OAS - Study 2 - LO1

The correct answer is: Six (6) years.

Question 81

The insured, John Smith, is driving Robert Brown’s auto as a temporary substitute auto and is held liable for an accident. The innocent third party was awarded $800,000. John Smith carries liability limits of $1,000,000 while Brown carries $500,000 on his insurance. How much would John Smith’s insurer pay?

Select one:

a.
$0

b.
$300,000

c.
$500,000

d.
$800,000.

Answer 81

Answer: $300,000

• look up registered owner liability. they would provide from their own policy
• OAS study 3-6

Question 82

Q: When a third party has been injured, which of the following could jeopardize the insured’s auto coverage?

Select one:

a.
Not admitting responsibility even if he feels at fault

b.
Refusing to discuss the claim with the third party

c.
Reporting the claim directly to the insurer instead of to the agent/broker

d.
Trying to settle amicably with the third party

Answer 82

Reference: OAS - Study 4 - LO2

The correct answer is: Trying to settle amicably with the third party

Question 83

Q: Your client calls to advise he/she needs insurance on a car leased from an automobile dealer. Which of the following policies is required?

Select one:

a.
OAP 1 Owners policy, suitably endorsed.

b.
OPF 6 Non-owned Automobile policy, suitable endorsed.

c.
OAP 4 Garage Auto policy, suitably endorsed.

d.
OPF 2 Driver’s policy.

Answer 83

Reference: OAS - Study 10 - LO2

The correct answer is: OAP 1 Owners policy, suitably endorsed.

The owner’s policy expressly excludes coverage if an automobile is leased or rented, but permission to do so can be obtained by endorsement OPCF5 and OPCF 5C can be added to the OAP 1 for long and short term leases. If a loss were to occur, the lessor would be a loss payee.

Question 84

Q: If the Insured drove his auto into his own garage door, what would be included under Section 7 Loss or Damage coverage?

Select one:

a.
The auto

b.
The garage door

c.
Both the auto and garage door

d.
Neither the auto or garage door

Answer 84

Reference: OAS - Study 8 - LO1

The correct answer is: The auto

Question 85

Q: Non-economic loss for a given accident involving one injured person has been assessed at $300,000. The injured person was 50% at fault for the accident. The deductible is $30,000 per person. How much will the injured person receive?

Select one:

a.
$135,000

b.
$142,500

c.
$150,000

d.
$300,000

Answer 85

Reference: OAS - Study 4 - LO3

The correct answer is: $135,000

If the plaintiff is at fault, the amount of damages is reduce by the deductible before the award is redacted for contributory negligence. $300,000 less $30,000 = $170,000 @50% = $135.000.

Question 86

Q: Terms in an automobile policy that specifically define the obligations and responsibilities of both the Insured and Insurer in Ontario are known as which of the following?

Select one:

a.
General Provisions

b.
General Conditions

c.
Conditions

d.
Statutory Conditions

Answer 86

Reference: OAS - Study 9 - LO1

The correct answer is: Statutory Conditions

Statutory Conditions govern every automobile insurance policy. They outline specific ways of dealing with various situations that may arise. their purpose is to protect The rights of The insured and The insurer by stating clearly what is expected of Each in certain circumstances.

Question 87

Q: All clients should be counseled regarding the availability of optional benefits available under O.A.P. 1 Owner’s Form. Which one (1) of the following is NOT available?

Select one:

a.
Increased Income Replacement Benefit.

b.
Excess Economic Loss Endorsement.

c.
Indexation Benefit.

d.
Increased Caregiver Benefit

Answer 87

Reference: OAS - Study 5 - LO2

The correct answer is: Excess Economic Loss Endorsement.

Optional Benefits are available for Income Replacement, Extended Caregiver, Extended Medical, Rehabilitation and Attendant Care, Dependant Care, Housekeeping and Home Maintenance, Death and Funeral and Indexation.

Question 88

Where can an applicant be directed to seek travel health insurance coverage when their application is rejected due to the results of a detailed medical assessment?

Select one:

a.
Financial Services Regulatory Authority (FSRA)

b.
Financial Services Commission of Ontario (FSCO)

c.
General Insurance Ombudservice

d.
OmbudService for Life & health Insurance (OLHI)

Answer 88

OmbudService for Life & health Insurance (OLHI)

• look up ombudsman

Question 89

What is the minimum number of days an Ontario resident must be physically in Ontario in a 12-month period to ensure OHIP coverage?

Select one:

a.
213 days

b.
183 days

c.
153 days

d.
212 days

Answer 89

Reference: ON Travel Health Supplement - Study 1 - LO3

The correct answer is: 153 days

Question 90

Q: Which one of the following is NOT a limitation found on a travel health policy?

Select one:

a.
Continuing medical treatment if the insured is medically fit to return to the country of residence following emergency treatment of a critical sickness or injury.

b.
Air travel as a passenger in a commercial aircraft licensed to carry passengers for hire.

c.
Suicide or self-inflicted injury or attempt thereat, whether sane or insane.

d.
Hospital or medical treatment for the birth of a child while traveling, pre-natal care or complications of the pregnancy or childbirth occurring within eight weeks of expected delivery date.

Answer 90

Reference: ON Travel Health Supplement - Study 2 - LO3

The correct answer is: Air travel as a passenger in a commercial aircraft licensed to carry passengers for hire.

Question 91

A client who has just been discharged from the hospital decides to take a trip overseas and calls to arrange travel health insurance. What must you bring to his attention?

Select one:

a.
Nothing.

b.
There is no coverage for any sickness he may have during the trip.

c.
There may be no coverage or limitations of coverage for the condition of sickness for which he was hospitalized.

d.
Coverage for himself and his wife is for accidents only while travelling.

Answer 91

Reference: ON Travel Health Supplement - Study 3 - LO1

The correct answer is: There may be no coverage or limitations of coverage for the condition of sickness for which he was hospitalized.

Question 92

Where can an applicant be directed to seek travel health insurance coverage when their application is rejected due to the results of a detailed medical assessment?

Select one:

a.
Financial Services Regulatory Authority (FSRA)

b.
Financial Services Commission of Ontario (FSCO)

c.
General Insurance Ombudservice

d.
OmbudService for Life & health Insurance (OLHI)

Answer 92

Reference: ON Travel Health Supplement - Study 3 - LO2

The correct answer is: OmbudService for Life & health Insurance (OLHI)

For applicants who are not eligible for a standard insurance policy, a few insurance companies offer a detailed underwriting review. Based on a medical assessment, the underwriter may apply additional policy exclusions or limitations. If issued, policies tend to be higher priced. If the insurer is unable to offer coverage based on the medical assessment, the applicant is directed to the OmbudService for Life & Helath Insurance (OLHI)

Question 93

Q: Most travel health insurance providers may deny claims, or seriously curtail benefits in which of the following situations?

Select one:

a.
The insured fails to notify the insurer immediately of a claim by way of a “Hot Line” number.

b.
The insured refuses to be transferred home because he/she thinks the treatment is superb in the hospital where being treated

c.
The attending physician has not submitted a bill in writing.

d.
Any of the above occur.

Answer 93

Reference: ON Travel Health Supplement - Study 3 - LO3

The correct answer is: Any of the above occur.

Travel health insurance claims typically involve three distinct but interconnected stages: emergency assistance hotline; case management and claim adjudication.

Question 94

Q: A new home contractor offers to pass you leads in exchange for a finder’s fee. How do your respond?

Select one:

a.
I’m already doing this for a car dealer that sends me leads.

b.
I cannot pay you directly but will give you a discount on your business policy.

c.
I cannot do this as you are not a registered or licensed general insurance intermediary.

d.
Absolutely I will pay you a portion of the commission I receive.

Answer 94

Reference: RIB Act - Reg 991 S15

The correct answer is: I cannot do this as you are not a registered or licensed general insurance intermediary.

Question 95

Q: An individual is required to register as an insurance broker if he/she _________________________.

Select one:

a.
For compensation provides risk management and loss prevention services on behalf of another.

b.
Acts solely as a reinsurance broker.

c.
For remuneration, transacts insurance solely on behalf of one insurer and the Facility Association.

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

Answer 95

Reference: RIB Act - RIB Act Definitions

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

Question 96

Q: An insurance broker whose registration is restricted to acting under supervision may NOT ______________________________.

Select one:

a.
Collect premiums on behalf of the insurance broker by whom they are employed.

b.
Deposit insurance premiums in their own trust bank account.

c.
Solicit insurance except in the presence of their supervisor.

d.
Sign letters to members of the public recommending insurance coverage.

Answer 96

Reference: RIB Act - By-Law 1 Part XV S15.1 Classes of Membership (c)

The correct answer is: Deposit insurance premiums in their own trust bank account.

Question 97

Q: In addition to completing an application for renewal of registration annually, insurance brokers must also advise RIBO ______________________.

Select one:

a.
When they receive a promotion.

b.
When they change employment from one broker to another.

c.
Whenever there is a change in their earnings.

d.
If they commence to write commercial lines insurance.

Answer 97

Reference: RIB Act - By-Law 20 S3 (a)

The correct answer is: When they change employment from one broker to another.

Question 98

Q: The RIBO Regulations require a broker to ______________________.

Select one:

a.
Divulge information to all and sundry about the client or prospect.

b.
Carry on business in a manner consistent with the RIBO Code of Conduct.

c.
Hide from RIBO, particulars of any other occupation in which the broker is engaged.

d.
Regard the need to be competent to provide the services required by the client as desirable rather than a duty.

Answer 98

Reference: RIB Act - Reg 991 S14

The correct answer is: Carry on business in a manner consistent with the RIBO Code of Conduct.

Question 99

Q: RIBO Regulations stipulate that brokers must provide a policy or certificate of insurance to an insured within a certain period after insurance has been placed. What is the length of that period?

Select one:

a.
Twenty-one (21) days.

b.
Immediately

c.
Ten (10) days

d.
Thirty (30) days.

Answer 99

Reference: RIB Act - Reg 991 S9

The correct answer is: Twenty-one (21) days.

Question 100

Q: 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) which is NOT.

Select one:

a.
To maintain a Trust Account for all trust money received.

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

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

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

Answer 100

Reference: RIB Act - Reg 991 S14

The correct answer is: To maintain a Trust Account for all trust money received.