RIBO Rules and Regulations Flashcards
What does RIBO stand for?
Registered Insurance Brokers of Ontario
What is RIBO?
The self-regulatory body for insurance brokers in Ontario
Who regulates the insurance industry?
Financial Services Commission of Ontario (FISCO)
What are the 5 departments that make up RIBO?
Administration & Finance
Communications & Marketing
Complaints & Investigation
Corporation Legal Services
Qualification & Registration
1) What is the Registered Insurance Brokers (RIB) Act?
2) What does it protect?
1) Piece of government legislation which granted self-regulation to insurance brokers in Ontario
2) The interest of insurance consumers
What is the definition of an Insurance Broker?
Any person who for any compensation with respect to persons or property in Ontario, deals directly with the public and:
- acts or aids in any manner in soliciting or negotiating or procuring the making of any contract
- provides risk management services
- provides consulting or advisory services
- holds themselves out as an insurance consultant or examines, appraises, reviews or evaluates any insurance policy or makes recommendations or gives advice
What can a broker restricted to “Acting Under Supervision” not do? (3)
Cannot control trust funds, act as a Principal Broker, or operate as a sole proprietor
For an insurance broker acting under supervision, how long is the continuing education requirements?
8 hours
What is the maximum length of time required for a broker to provide a a Policy or Certificate of Coverage to the client?
21 days
What does the certificate of coverage set out? (4)
- Name & mailing address of insured
- Description of provided coverage
- Full name of each insurer
- Amount of insurance placed with each insurer
What is the due date for renewing your broker license?
On or before August 31
If you fail to renew your license before the due date, when will your license be suspended?
September 30
What is an Unlicensed Insurer?
Insurer not licensed under Insurance Act
What are the requirements for insuring under an Unlicensed Insurer? (3)
- Informed client of the risks (i.e. Insurer not subject to regulation under Insurance Act & Orderly payment of claims more difficult)
- Broker obtained written consent of client
- Sufficient insurance cannot be obtained at reasonable rates or on the form of contract required from licensed insurers
What is the condition for insuring auto under and Unlicensed Insurer?
Cannot insure unless auto insurance is in excess to minimum liability required by Insurance Act
How often does a broker who places insurance with an Unlicensed Insurer have to file?
Quarterly each year
How many people and who does a RIBO Council consist of?
13 people total
- 9 elected brokers
- 4 public members
What are the 7 RIBO Committees?
1) Administration & Finance
2) Complaints
3) Discipline
4) Legislation
5) Marketing & Communications
6) Professional Development
7) Qualification & Registration
What does the Complaints Committee do?
Investigates allegations of professional conduct & determines if there is sufficient evidence to refer the complaint to Discipline Committee
What does the Discipline Committee do?
Conducts a hearing to determine innocence/guilt of broker
When broker is guilty, appropriate penalty applied
What does the Qualification & Registration Committee do?
Sets & reviews RIBO’s qualification standards
Makes sure businesses & individuals comply with these standards
What is a Quorum?
Minimum number of RIBO Council members required to be present for all meetings
- A majority of the members of the Council constitutes a quorum
How many continuing education hours are required for a Principal Broker?
10 hours
What is the required amount for Errors & Omissions coverage?
Minimum $3 000 000
