RIBO Practice Exam Four

With respect to automobile insurance if the policy has been in effect for more than 60 days I can only cancel for which reason(s)?

The name of the coverage that provides legal liability insurance for damage to customers’ autos that are left with the insured for service, repair, or storage is which of the following?

The most common definition of actual cash value (ACV) in the property insurance field is which of the following?

Which of the following is correct:

An employee who drives your car or someone where you service the vehicle damages it or steals it would be covered under:

Lawyers, Accountants and Insurance Brokers should carry this type of insurance

Which of the following is a true statement?

The most common use of this policy is to facilitate filing proof of financial responsibility to obtain a driver’s license for commercial purposes.

Which of the following is not true about insurance binders?

The taking of money or other property from inside a premises by someone who has unlawfully and forcefully entered or exited is an example of what kind of crime?

A comprehensive homeowners policy does not exclude:

Who is the mortgagor?

Which of the following is not a correct definition in the Homeowners Policy?

The minimum limits under the Third Party Liability coverage are $200,000 in almost every Canadian province and territory except for this province

Which province operates two risk sharing pools to transfer auto risks?

The name of a liability insurance policy that provides high limits of coverage above underlying coverage and may fill a number of insurance gaps is

Which method of risk management best describes the use of high deductibles or elements of self-insurance to reduce insurance costs?

Which of the following is not considered a direct loss with Cyber Risk coverage?

This endorsement is a form that will cancel coverage for the use & operation of the vehicle until coverage is reinstated.

Which of the following would be considered “Persons Insured” under Uninsured Automobile Coverage?

Which of the following is included under the Specified Perils section (Loss of or Damage to the Insured Automobile)?

Each and every automobile policy expires at the same time. What is that?

Something that might increase the likelihood that a loss will occur, is called what ?

Each of the following is true about farm coverages except which one?

Which of the following is considered a Construction Bond?

Authority of an insurance agent is

The insured is doing a renovation to their home and need to move into a hotel while the home is under construction. The Comprehensive Homeowners Policy would pay

This type of loss is defined as a payment for loss or harm that is not assessable in money.

The only significant difference between the occurrence and claims-made forms of general liability insurance is found in which of the following?

Under which policy provision is an insured’s right to recover for a loss from a third party transferred to the insurance company?

Typical exclusions on a Cyber Risk policy does not include:

In the event your vehicle is stolen , a personal auto policy will provide coverage for transportation expenses up to what value?

You have a Comprehensive Homeowners policy for $200,000 with a $250 deductible. Your home suffers a total loss, what would the insurer pay?

In Ontario the Priorities of Payment are

Under which type of marketing system do agents or agencies operate as independent businesses but agree to represent only one insurance company?

Which part of an insurance policy describes what property and/or perils will be covered by the contract?

Which of the following is not considered a Miscellaneous Bond?

Under third party liability coverage, the insured is entitled to:

You may be guilty of misrepresentation if you sign an automobile application and do not disclose the following:

A homeowners policy is deemed vacant, and the client purchases a vacancy permit. Which peril is not covered under the vacancy permit?

In legal terms, the actions by one party might have the effect of giving up a known right. When this occurs, the party has created which of the following?

What is the consideration that an insurer gives to the insured under an insurance contract?

This type of bond is more frequently required on work for government than for private contracts.

Which of the following is correct with respect to condominium insurance?

Exclusions under all risk policies can be divided into several different groups. Which of the following is not one of these groups?

A single earthquake means all earthquake shocks which occur within how many consecutive hours during the policy period?

Under liability insurance policies, what does an “aggregate limit” mean?

Which of the following describes the principle of indemnity?

With respect to the Rebuilding Clause – Deferred Payment on farm policies, the loss has to be built within:

Which of the following is not covered under the additional benefits of the OAP1?

An unidentified automobile is one

Homeowners coverage for loss of personal property because of “mysterious disappearance” is provided by what?

Which type of insurer is an unincorporated group of members who share losses and provide insurance to each other?

Which of the following is not a requirement for forming a valid contract?

Farm Machinery and Equipment Floaters cover all but one

There are three exclusions on a glass policy, they are

One of your commercial clients asks how he can keep his insurance premium down without jeopardizing coverage. What do you recommend?

Medical payments under a homeowners policy are available for expenses resulting from an injury to which of the following?

Withholding, rather than misstating, a material fact on an insurance application is an act of which of the following?

Ann’s auto was damaged when it was struck by another car whose driver ran a stop sign. She was deemed to be not at fault. Which part of Ann’s Personal Auto policy will cover the damage to her car?

This premium can move up and down over time based on a policy that is agreed to at the outset of an insurance contract

Which of the following type of insurance does not fall under “General Insurance”

Which of the following statements is true?

Under the dwelling property forms, personal property moved to a new principal residence will be automatically covered at the new location (subject to policy expiration) for a period of how long?

Which of the following losses is not excluded under the physical damage coverage of a personal auto policy?

Which of the following could be covered under the Liability section of a named insured’s Personal Auto policy?

This policy is an all risk policy that includes theft and covers property at specified premises, newly acquired premises and while in transit.

Which of the following statements are correct with reinsurance?

In Ontario, an insurance agent may

Most liability claims are based on negligence that results in injury or damage. An act of negligence is considered to be a tort. What does the term “tort” mean?

Insurance is a mechanism used to manage which of the following types of risk?

Which of the following losses could be paid under Uninsured Motorists coverage?

Tooltip TextJulie’s parents have a homeowner’s policy with you. What coverage would apply to Julie’s clothes under her parents condo policy if there were a fire at the college residence where she temporarily lives?

Which of these scenarios would be covered under a Comprehensive Homeowners Policy?

Which of the following would not be considered to have a fiduciary duty?

Claims-made general liability coverage does not apply to bodily injury or property damage that occurs when?

Liability coverage provides medical expense payments for accidental injuries if the expenses are incurred and reported to the insurer within what date?

Which of the following could not be covered under a homeowners policy?

Matthieu works as a carpenter. Is there any coverage for his tools under Section 1 Coverage C of the policy if the tools are stolen from his vehicle parked in the driveway?

Under a personal article endorsement

What time of day does a fire policy expire?

Under liability insurance policies, what does the term “personal injury” usually mean?

An employer purchases a fidelity bond to protect against potential losses by employee dishonesty. In this situation, each of the employees covered by the bond is considered which of the following?

A contract is an agreement enforceable at law. Under common law, which 3 of the 5 conditions of a contract determine it’s enforceability:

Your client goes to Texas in the winter for 5 months. Would they be insured if while they were away and a pipe in the garage froze and burst?

Which of the following situations would be covered under your OAP1.

The insured leaves a bar, gets into his car in an intoxicated state and causes an accident on the way home causing damage to a telephone pole and a parked car. Which of the following would not be covered?

Which dwelling policy forms are named peril forms?

Under the Homeowners Form, each of the following types of property would be insured under Coverage A (dwelling coverage) except which one?

A Contractors’ Equipment Floater:

You lend your vehicle to a friend, that friend drinks and drives and causes an accident without your knowledge. How will your policy respond?

Under the Commercial General Liability Policy which statement is true?

The Accident Benefits coverage of an automobile insurance policy does NOT pay for:

Under a personal auto policy, which of the following is not a collision loss?

On homeowners policies, “premises” is a broad term describing where liability coverages apply. It includes each of the following except which one?

Which of the following is usually excluded from a Electronic Data Processing Package Policy:

Specified perils under your personal automobile would cover:

Which of the following theories help insurers determine probability of loss in the future?

Which of the following is a FALSE statement? In Canada, automobile insurance is marketed