RIBO Practice Exam Three

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

Garage premises and Operations Liability Insurance includes coverage against liability arising from:

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 had $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

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

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:

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

What type of Liability Policy would owners of a multiple storey apartment building need?

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

Of the following persons or organization 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

A client of yours is on vacation in Mexico. While there he goes rock climbing. If he injures himself while rock climbing, will he be covered under travel health insurance?

A professional soccer player will be going snorkeling during his vacation. He wants to know if a claim while snorkeling will be covered. What do you tell him?

How long will OHIP cover a traveler who is out of the country?

Out of province insurance is available to

Your client is an executive who frequently travels, what would be the best travel policy for this client?