RIBO Practice Exam Three – Master Copy Approved Jan 14-2024

Insurance is

Which policy provides all risk coverage for a dwelling building and its contents?

Which Liability policy lends it best to providing suitable coverage for a large manufacturing firm?

The statutory conditions:

The law makes a Bailee:

In collecting a premium deposit, the agent is required to

The basic fire policy covers which of the following perils

An Umbrella policy

Your client has an OAP1 covering one auto for $1,000,000 Liability, Accident Benefits, DCPD, $300 deductible for Collision and $300 deductible Comprehensive, OPCF 44 and OPCF 20. Unfortunately, your client was hit by an insured third party In Ontario causing severe bodily injury. The third party has a $300,000 liability. The court awarded a claim settlement of $1,300,000. How much did your client receive under OPCF44?

What does the expression “moral hazard” mean

Condominium Unit Owner’s Basic Policy

The insured has a jewelry loss. In submitting the claim:

The requirement regarding rebuilding a building and detached private structure on the same site, with same occupancy and materials of similar quality affect the coverage:

With an application for auto insurance the insurer is allowed to ask about the use, for rating purposes? Choose the incorrect statement

A material fact

An example of an insurable loss under the basic fire policy is

A binder is:

Your insured has an all terrain vehicle to insure what special endorsement needs to be added to the policy to properly cover this?

Indemnity can be described as

Following a policy being issued, a misrepresented fact on an automobile application may cause an insurer to:

Indemnity means:

After an automobile accident, how soon must an insurer give notice to an insured claimant when they are going to repair the vehicle?

Common law is

On the OAP #1 policy the uninsured automobile coverage would not respond in which of the following circumstances.

Ordinary negligence is:

When a Standard Mortgage Clause is attached to a policy:

Which of the following is correct:

Unearned premium is

The amount of insurance on a Builders Risk policy is usually based upon:

Minimum liability limits:

Cancellation of a Fire Policy by registered mail is effective:

When an insurance broker moves from a brokerage firm and begins working for a different firm, the individual must advise:

Temporary insurance must be terminated

A bailee is one who:

Absolute liability is a legal provision which:

Which of the following parts of a Fire Insurance Policy is required by law?

Which of the following is correct:

Physical hazards of a property are determined by

If an architect’s drawings are destroyed in a fire, which coverage of his policy would pay for the cost of completely re-working them?

The insured, while riding a bicycle, was struck by a car and injured. Medical payments for the insured will be:

Insurance coverage, under the terms of a Standard Fire Policy is effective:

Under Liability Coverage:

A void contract is a contract

The purpose of the loss of income benefits under the Owners Policy is:

When an insured purchases an additional or a replacement vehicle, coverage is automatically extended to the newly acquired automobile.

Which of the following statements is correct in connection with an All-Risk Homeowners/Tenant/Condo Policy:

What department of an insurance company determines which risks are acceptable to the insurer and at what price?

Damage to the insured vehicle resulting from theft of the vehicle is covered by both:

The Owners Automobile Policy limits required to satisfy your province’s Financial Responsibility law are:

The Personal Articles Floater:

Actual cash value upholds the principle of

The insured accidentally collided with a guard rail causing severe damage to his vehicle. This will be a _____ claim.

The Drivers Policy (OPF #2) is intended to provide coverage for:

Which of the following, with regard to Section II Liability Coverage is correct:

Coinsurance

Which of the following statements is correct?

Under the auto policy, on receipt of a proof of loss the insurer:

A service station operator frequently uses his tow truck to tow automobiles, which he does not own. To provide liability insurance against damage to the vehicles he is towing, he requires:

What knowledge should underwriters require to have in order to complete the primary function of their role?

An insurance contract contains all of the elements of any other legal contract. One of the elements that must also be contained in a valid
contract for insurance is

Increasingly higher limits are necessary for liability coverage because:

The insured’s car is stolen. The insured is entitled to Loss of Use by Theft coverage on:

An insured operates an automobile dealership. What policy will he need to cover the vehicles he has for sale against fire loss:

Agents and brokers require business accounts for different purposes. Which account is used to pay expenses from and deposit earned commission into?

Concealment is

The insured has a $100 Specified Perils deductible. In which of the following cases does it not apply?

Of the following persons or organizations who could not have an insurable Interest in a piece of jewellery:

Which of the following is not a factor in the insurance definition of fire?

A tenant negligently causes a fire, which damages the apartment building. Under which policy is the building damage covered?

The definition of “insured” under Third Party Liability section of the OAP#1 includes:

Which of the following do not have a fiduciary relationship with their clients

Which is one of the best ways to defend against E&O claims?

In regards to GHIP (OHIP in Ontario) which statement is correct

The primary purpose of the hotline number is

Which one would not be considered a legal person?

Which of the following claims scenarios would be covered under specified perils in the OAP1?

You have a set of 3 vases, 2 of which are stolen and one is being repaired. What clause would prevent you from claiming for all three?

Which of the following scenarios are acceptable under the OAP1?

As a broker, you have to carry a Fidelity Bond. Fidelity Insurance is really what type of insurance?

Within the Homeowners Policy, the statement “The limits listed below do not apply to any claim caused by a specified peril” means:

A dwelling is valued at $150,000 and owned by three people equally and insured for full value. The home sustains a fire and is totally destroyed. How much would each person receive as payment?

Which one of the following situations describes when indemnity has occurred?

Your client is recently widowed and has decided to sell her large home and move into a condominium. She calls you to discuss what changes need to be made to her homeowner’s policy, what do you tell her?

Which one of the following would affect the amount of settlement after an insured loss?

Your client is renovating their condo and need to put items in storage for 6 weeks. They ask you if the items would be covered while they are in storage. What do you advise them?

Which one of the following statements accurately describes a unique feature of Condominium Policies?

Your insured installs high end customized closets permanently to the closet in his Condominium unit. They are valued at $5,000 and he questions where they would be covered under his Comprehensive Condominium policy.

Under the Tenants Comprehensive policy which one of the following conditions or events does not cover the tenants own property?

Fine Arts coverage is an “All Risk” form used to insure certain valuable items. Which one of the following statements in NOT true about this coverage?

Brokers may bind risks in accordance with the terms of their Company-Broker agreements. Which one of the following statements about binders is correct?

A friend of yours is a local contractor who builds homes. He offers to place all the builders risk policies with you and refer the new homebuyers to you. In return, he is asking for a discount on his premiums. How do you respond to ensure you are complying with RIBO regulations

Which statement best describes the Facility Association?

Which of the following statements is false?

Which of the following is a lessee of a property?

Your insured has a standard OAP1 and asks if the policy will cover driving in New Mexico, Texas, California and Hawaii. What do you tell them.

Your insured calls and advises they are volunteering for a local organization to take cancer patients to chemotherapy appointments. In the agreement, they will be paid per kilometre driven. How do you respond?

Your insured has passed away and the home is now vacant. The estate has advised the insurer and a vacancy permit has been placed on the property. What loss would be covered?

Which of the following would not typically be considered a “common element” with respect to a condominium building?

Which one of the following situations is covered under the Watercraft, Outboard Motor Trailer, Miscellaneous Equipment coverage rider attached to a Homeowners policy?

_________________   Insurance is intended to protect people who may be responsible for injury to someone else or damage to someone’s property.