RIBO MOCK EXAM 1 (LEVEL 1) - Anytime Learning

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#1. What is an endorsement?

A mandatory rule applicable to all the policies.

An amendment that changes the policy terms and conditions.

An addition to the policy wordings.

A different version of the policy wordings.

#2. Brokers may bind risks in accordance with the terms of their company-broker agreements. Which statement about cover notes or binders is CORRECT?

Only written binders are legal

All binders expires automatically seven days after their effective

Binders only become effective after a premium is paid for them

Binders may be oral or written

#3. Brianna takes a call from a prospective new client who has an operation nearby. While evaluating the risk, Brianna finds that the client holds specialized events requiring a liquor license. What step should Brianna NOT take?

Review specialized markets, limits, deductibles and exclusions.

Submit a completed application to all carriers to get a quote.

Review the marketplace to find specialized markets that include alcohol liability.

Discuss limits and coverages with the insured.

#4. What is a possible effect of a “Co-insurance Clause” on the settlement of a loss?

It may affect the third party in a liability claim.

It may decrease the amount to be paid by the insurer.

It may affect the insured’s personal liability coverages.

It may increase the amount to be paid by the insurer.

#5. A building worth $200,000 insured for $100,000 under an 80% co-insurance clause. A loss is sustained for $80,000. How much will the insurer pay?

$80,000

$100,000

$125,000

$50,000

#6. Joseph has a personal boat insured under their Homeowner Insurance Policy with a deductible of $2500. The boat has been scheduled for $10,000. The boat was stolen, and Joseph reported the theft under his Homeowners policy. While investigating the claim the insurance company discovered that since the inception of the policy joseph had been using the boat to shuttle tourists to and from an island for a fee. How does joseph insurance company respond to this claim.

Deny the claim and cancel the policy due to misrepresentation.

Pay the claim but cancel the policy due to misrepresentation.

Pay a settlement of $7500 as the boat was scheduled, theft is an insured peril and the deductible is applied.

Pay a settlement of 10,000 as the boat was scheduled and theft is an insured peril.

#7. A client informs you that they have been experiencing difficulties understanding their insurance policy and ask for detailed clarification. As a broker, how should you respond to demonstrate integrity and uphold the RIBO code of conduct?

Provide a complete summary of the policy coverage and offer to answer any questions.

Inform them that discussing the policy is beyond your scope and they should hire an insurance advisor.

Suggest the client directly contact the insurer for explanations, as you are not responsible for policy details.

Advise the client to read the policy document carefully and call back if they still have questions.

#8. Being mindful, respectful and accommodating of the differences that make us distinct is typically found in what kind of policy or practice?

Operations and Procedures

Ontario Automobile.

Occupants health and safety.

Diversity, Equity and Inclusion.

#9. Subject of a statutory condition?

Protection of the property after loss

Basis for determining the amount of premium.

Misrepresentation

Provisions for termination of the policy

#10. A broker is required to maintain the integrity of client records to meet legal and professional standards. Which action BEST ensures client data and information are complete and accurate according to RIBO guidelines?

Relying Solely on digital records to avoid paperwork

Regularly reviewing and updating client files

Storing client data in multiple locations to prevent loss

Sharing client data with other brokers for verification

#11. The insured contacted the broker to report a claim. The insured’s basement is flooded when a pipe burst in the basement. The insured has a homeowner package under a comprehensive form. Which coverage is insured required to have for this claim to be covered?

Overland water endorsement

Sewer backup endorsement

Flood insurance provided through a separate policy

The claim is covered under comprehensive coverage as sudden and accidental escape of water coverage.

#12. A broker recently received a notice from RIBO regarding new compliance requirements for data privacy and information security. The broker needs to ensure the brokerage adheres to these updated guidelines to avoid penalties. What are the immediate steps the broker should take to implement the necessary changes effectively?

Ask the caller for partial information (such as date of birth) and disclose the policy details if it matches

Provide the requested policy details since the caller claims to be the client and sounds urgent

Share only basic policy information since it does not include financial details

Politely refuse to disclose any policy information until the caller’s identity is properly verified using established brokerage procedures

#13. What is the primary regulatory body for insurance brokers in Ontario?

Financial services regulatory authority (FSRA)

Registered Insurance brokers of Ontario (RIBO)

Insurance Brokers Association of Ontario (IBAO)

Insurance Institute of Canada (IIC)

#14. Which statement CORRECTLY describes the purpose of OPCF 44R-Family Protection Coverage to your policyholder?

It provides flexibility in the insureds coverage in case it is inadequate to meet the costs resulting from the use or operation of the insured vehicle.

It indemnifies an insured up to the limit of the insured policy for an amount they are legally entitled to recover for bodily injury or death from an inadequately insured Third party

It protects the insured for liability for injuries to any passengers if the insureds coverages limits are inadequate to cover them.

It provides additional third-party liability insurance if the insured is involved in an accident in a state or province where the statutory minimum limits are higher than those being carried.

#15. Ray parks their vehicle in the underground parking garage of their condominium building and locks their car. The next morning, they find that their car is vandalized, and some parts are stolen from inside the car along with their laptop. They have insurance policies for their car and condominium. How can Ray claim for their damages?

His car insurance policy will pay the claim for vandalism, stolen car parts and the laptop

The automobile policy will pay the claim for vandalism and stolen car parts, and the condominium policy will pay for the laptop

The automobile policy will pay for vandalism and stolen car parts and the condominium corporation policy will pay for the laptop

The condominium policy will pay the claim for vandalism, stolen car parts and the laptop

#16. Which is NOT part of Inbound Travel Health Insurance Policies?

Visitors to Canada

Expatriate (Expat) Insurance

Visitors to Canada Super visa

International Students to Canada

#17. You meet with a client on July 1st to review a quote home insurance you previously provided to them on June 28th. During your meeting the client accepts the quote and requests that coverage begin on June 28th. What should happen next?

Call the insurance underwriter to obtain the approval.

The earliest date you can use is July 1st.

Call your broker to obtain approval.

As you met with the client on June 28th you can have coverage begin on this date.

#18. Fabio just purchased a second car, which is a new luxury vehicle. A review of his existing coverage shows that the Ontario policy change form (OPCF)#20 coverage for Transportation Replacement has a limit of $900. What would his broker recommend with respect to current endorsement limit?

Increase the endorsement at renewal after researching the cost.

Leave the limit as it is, as there is a second vehicle insured on the policy.

Discuss a higher endorsement limit to cover the cost of renting a similar vehicle.

Leave the existing limit as it, as the cost for a rental is $30 per day.

#19. Which is NOT an example of a type of automobile?

Trailer

Substitute automobile

Newly described automobile.

Bike

#20. What would NOT be considered a “Fiduciary” with respect to the property of others?

An insurance adjuster

An insurance company

A trust company

An insurance broker

#21. A person insured under a property policy goes bankrupt and sustains a loss covered by the policy shortly afterwards. Which statement describes the legal situation that exists?

The insurer is liable to pay the loss to the trustee in bankruptcy

Bankruptcy is considered a material change to the risk and the policy is therefore void

The policy is void because the insured is bankrupt

The loss would be paid by the Trustee in Bankruptcy

#22. Certain Accident Benefits limits under O.A.P.1 Owner’s Policy can be increased or extended at the option of the insured. What benefit CANNOT be changed?

Income Replacement Benefits.

Caregiver Benefits for Catastrophic Injuries.

Disability Benefit after Age 65.

Death and Funeral Benefits.

#23. While on vacation in Ontario your insureds automobile is broken into. The factory installed AM/FM Radio worth $500 is forcibly removed from the dashboard and the camera valued $400 is taken from the locked glove compartment. The thief also caused $400 damage to the automobile. The insured has O.A.P 1 with $500 deductible Comprehensive coverage. What would the automobile insurer pay in total?

$400

$1300

$500

$800

#24. A recently retired client sold their home and purchased a life lease unit in a cooperative building. What property policy do they need?

Rented Dwelling property policy as the client will have to pay a monthly maintenance fee to the cooperative

Tenant Policy as this will cover the client’s personal property as the client holds an interest in the unit but does not own the unit.

Condominium unit owner policy as this will cover the client personal property as well as any improvements and betterments in the unit.

Homeowners Policy as a life lease could be detached house or a row-house as the client is responsible for the repairs to the unit

#25. Your insured is involved in an accident and the insured’s automobile is heavily damaged. Repairs are estimated at $7,500. The insured calls you to advise that the insurer does not intend to have the vehicle repaired but will make a cash settlement as its actual cash value is shown in the Book as $5,000. What should you tell your insured?

The insurer must pay the higher of the repair cost or the actual cash value of the vehicle.

The insurer may settle the claim by paying the actual cash value of the vehicle, since the cost of repairs exceeds its value.

The insurer is obliged to pay the full cost of the repairs if your insured wants the car to be repaired.

The insurer may only pay for repairs up to the policy limit shown on the declarations page.

#26. What does the RIBO code of conduct require brokers to disclose to clients in terms of potential conflicts of interest?

Historical claims data

Number of clients

Ownership interests

Office size and location

#27. Peter owns a Convenience store and has a commercial property policy. The postal carrier slips and falls in Peter’s parking lot and is severely injured. The postal carrier sues Peter for their injuries. What section of the policy would this be covered under?

Slip and fall liability

Premises liability

Pedestrian liability

Tenant’s legal liability

#28. An insured requests to add a rental property onto their Homeowner’s policy and tells their Broker that a family will be moving in. Two months later, there is a fire resulting in a total loss of the rental property. Upon inspection, the claims adjuster discovers that the property was rented to four students instead. How will the policy respond to the loss?

Cover the loss but subrogation against the student’s insurance policy

Deny the claim due to material change in risk in the occupancy

Deny the claim as the fire is not an insured peril

Cover the loss as the type of tenant does not matter

#29. What amount must be established when there is a co-insurance clause in a replacement cost policy?

The actual cash value of the property

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

The original cost of the property.

The replacement cost of the property

#30. Which practice is considered a violation of the RIBO Code of Conduct for insurance brokers?

Talking to insurance companies in client’s behalf

Keeping Client personal information confidential.

Offering premium rebates to clients.

Conducting regular client satisfaction surveys

#31. As you are reviewing emails, you notice one that appears to be an invoice from a client, but it contains unusual phrasing and a distorted logo. What is the MOST appropriate interpretation of this scenario based on your understanding of potential cyber threats?

The email might be fraudulent, and you should flag in a suspicious for further review by IT

The email is a simple miscommunication error and can be ignored without consequence

The email should be replied to immediately to clarify any potential misunderstanding with the client

The email indicates the client might have altered their logo, so you should verify with the client directly.

#32. Kelly the insured, contacted her broker stating that she just purchased a new home. The lender is requiring a confirmation of Insurance with a guaranteed replacement cost coverage. Kelly currently has a Homeowners Broad Form policy with no endorsements on it. Under this Policy form can broker provide a binder certificate with guaranteed replacement cost?

Yes, as guaranteed replacement cost is automatically covered under the Homeowners Broad Form.

No, as the insurance company does not provide guaranteed coverage.

No, as Guaranteed replacement cost is not covered under the Homeowners Broad form.

Yes provided the insured meets the insurer’s requirements for Guaranteed Replacement Cost.

#33. An employee at a gold store commits a burglary worth $1 million of gold. Which coverage of the business insurance policy will cover the loss?

Business Interruption Coverage

Commercial General Liability Coverage

Crime coverage

Property Coverage

#34. Which of the following is NOT a responsibility of a Broker towards the insurer?

To act within the terms of the contract by writing acceptable classes of business within the coverage limits specified.

To advise the insurer promptly of all the claims

To disclose only material facts that will ensure the approval of the risk by the insurer.

To submit the applications of the business written promptly and hold any premiums collected in trust until the funds are remitted to the insurer.

#35. An insured dies in fire at their home caused by careless smoking. What action will the insurer of the dwelling take?

Be unable to pay the property loss as the named insured is no longer available to sign the proof of loss.

Pay the building and contents loss into court in trust

Deny the loss to building and contents as the insured caused the fire

Pay the loss to the building and contents to the insured’s estate

#36. The contents of a building are insured for $45,000 but valued at $100,000 the policy contains a 90% coinsurance clause along with a $2500 deductible clause if fire damages the contents to the extent of $8000 how much would the insurer pay?

3500

4500

1500

2500

#37. Urbanzo lives alone and has only one vehicle listed on his automobile policy. Urbanzo park their vehicle for the winter and goes to Florida. While in Florida they plan to use public transit and rely on family members for rides. Which OPCF form would BEST apply to this scenario?

OPCF 2 – Providing coverage when Named person drive other automobile

OPCF 44- Family protection coverage

OPCF 27- Damage to Non-owned auto

OPCF 16 – Suspension of Coverage

#38. The insurance brokers association of Ontario.

As they have been running their business for some time, assume the client is aware of the risk and that they have chosen not to purchase the coverage.

Collect a signed waiver from the client acknowledging the exclusion of premises liability coverage.

Include the premises liability insurance in their policy without consulting them, as it is necessary.

Advise the client of the risk and recommend adding premises liability insurance to their existing policy.

#39. A tenant in a high-rise apartment negligently starts a grease fire and causes smoke damage to their own apartment including the hallways of the building and two other apartments. Under which part of the liability section of their tenant’s comprehensive policy would the damage to the two other apartments be covered?

Loss assessment coverage Section D

Personal liability coverage E

Not covered

Voluntary property damage to others

#40. Tony is insured on a comprehensive homeowner’s form. Tony’s bicycle is stolen from the park. Does Tony’s Policy cover this loss?

Yes, up to $500 as per the special limits on the policy.

Yes, subject to Tony’s homeowner’s deductible of $1000.

No, Tony should have listed the bicycle in their policy to have coverage.

No, as the bicycle was not in a locked garage.

#41. What purpose does a “Proof of Loss” form serve when filed by the insured following a fire loss?

None

It provides the insurer with notice of claim

The insured files it to “prove” the loss occurred and establish the value of the property damaged or destroyed

It is required to be filed with the fire marshal’s office to provide statistics about fire losses in Ontario

#42. As part of your role as an insurance broker, you often handle sensitive client information and are required to adhere to specific privacy requirements and standards. Which federal legislation primary governs the protection of personal information?

Personal information protection and electronic documents act

Insurance Brokers Act

Freedom of information and protection of privacy act.

Insurance Act

#43. In Commercial lines, the Value of wall-to-wall carpeting falls under which component?

Building

Stock

Equipment

Material

#44. An insured property risk that is shared by multiple insurers is known as which of the following?

A contract of insurance

A subscription Policy

An umbrella policy

A broad form policy

#45. Your insured has comprehensive coverage an O.A.P 1 Owner’s Policy and inform you that they will be taking the car by ferry from Yarmouth, Nova Scotia to Bar Harbour, Maine. The insured asks if the policy would cover the loss of the automobile if the ferry sank in a storm. What do you tell them?

The Comprehensive coverage would pay

There would be no coverage as the ferry does not operating solely between Canadian ports

There would be no coverage unless a special Ferry Rider was added

Loss or damage while the automobile is being transported on water is only covered for specified perils not comprehensive

#46. Elvira, a client, needs a new vehicle quote right away. Special circumstances of the vehicle require Elvira’s broker to consult the insurance company to clarify how the vehicle should be rated. Her broker has reached out to the company, but they are “backlogged” and cannot respond until the next day. What should Elvira’s broker do next?

Explain the reason for the delay to Elvira and contact her the next day with quotes and options for coverage

Call the insurance company again and explain that Elvira wants to have the quote today

Give Elvira a quote based on another clients with a similar vehicle, so she can have her answer today

Wait for the insurance company to respond. Once the company has clarified how they need the vehicle to be rated, call Elvira with a quote

#47. What are the four main components of a homeowners policy form?

Dwelling Building, Detached Structures, Personal Property, Additional Policy Extensions

Dwelling Building, Detached Structures, Personal Property, Special Limits of Insurance

Dwelling Building, Detached Structures, Personal Property, Additional Living Expenses

Dwelling Building, Detached Structures, Personal Property, Exclusions

#48. The contents of a building are insured for $90,000 but valued at $200,000. The policy contains a 90% co-insurance clause with $2,500 deductible. A fire damages the contents to the extent of $20,000. How much would the Policy pay?

$10,000

$20,000

$15,500

$7500

#49. Information collected for the purpose of quoting a commercial general liability policy is protected under what act?

The insurance brokers act of personal information for customers (IBAPC)

Personal and Electronic Document Handling Act. (PEDHA)

The personal information protection and electronic documents act. (PIPEDA)

Business insurance liability privacy code of Canada. (BILPCC)

#50. Which Coverage under the Ontario Auto Policy (OAP 1) applies to the damage to the vehicle in not at fault accidents?

Uninsured Accidental Coverage

Loss or Damage Coverage

Direct Compensation Property Damage Coverage

All Perils Coverage

#51. A broker is given two days’ notice from an insurance company that they are getting off risk for a small commercial property account. Which regulation or act outlines regulations governing how insurance companies must handle notices of expiry?

RIBO by laws

Insurance act

Compulsory Insurance Act

Registered Insurance Brokers Act

#52. A client comes to your office to arrange for a travel health insurance policy. Your questioning reveals he will be skydiving while on the trip. What would you tell him?

He will be fully covered by the policy

Travel health plans coverage for sporting injury vary from insurer to insurer

He is not eligible for a policy

He will only covered up to a limited amount if injured while skydiving

#53. With the introduction of OPCF-49 how has the Direct compensation property damage (DCPD) coverage charged effective January 1,2024?

The policy no longer offers DCPD coverage

DCPD coverage only applies to commercial policies

Consumers can choose to opt out of the DCPD coverage

DCPD is mandatory for all policyholders

#54. You notice that a Colleague has been processing transactions with missing documentation, a practice that does not comply with RIBO regulations. What is the MOST appropriate course of action to take in this situation?

File an anonymous complaint directly with RIBO to avoid personal involvement.

Collect evidence of the non-compliance and report the issue to your employer for guidance.

Attempt to correct the mistake yourself without alerting anyone to maintain workplace harmony

Encourage the colleague to report their own non-compliance to RIBO to rectify the situation

#55. What coverage is included in an owner-occupied condominium policy?

The condominium building and common property such as hallways and stairs, pools

Condominium corporation assets such as furniture and equipment

Any upgrades above and beyond the original standard construction of the condominium unit

Fixtures and fittings installed as part of the original or standard construction such as floors and wall coverings

#56. After accessing your email, you notice an unexpected message that appears to be from your insurance company’s client asking for sensitive information. Which characteristic BEST helps you identify this message as a potential phishing threat?

The email contains an attachment with a familiar file format.

The email requests urgent action and threatens negative consequences for inaction.

The sender’s email address matches one from your company’s domain.

The message references a recent legitimate transaction you made.

#57. Chloe called her Broker to pay for her home, auto and travel insurance package installment. While she was waiting for her Broker to open the file Chloe mentions her daughter’s upcoming high school graduation and her daughter is moving to Ottawa for University. Where should the Broker direct the conversation next to ensure Chloe’s insurance policies remain reflective of her needs?

Advise Chloe to let the broker know when her daughter starts school so she can remove as a driver

Ask Chloe to send a copy of the daughter’s diploma because she now qualifies for the graduated license discount

Ask Chloe if her daughter would like to purchase travel insurance

Ask Chloe if her daughter is taking a vehicle with her to university and if she is staying in residence

#58. Your client advise they are having their condominium unit renovated. Unit is ready for occupancy; they will be placing most of their household goods in storage for six weeks. They ask you if coverage under their condominium unit owner’s comprehensive policy will extend to the property in storage. What do you tell them?

All coverages continue for 30 days. After that, only theft is covered, if requested in writing

Only fire and theft coverages applies to property in storage

All coverages under their present policy will continue to apply

There is no coverage at the warehouse location

#59. What is the minimum limit that an automobile policy must carry for third party liability in Ontario?

$200,000

$100,000

$500,000

$100,000

#60. The RIBO code of conduct is outlined in Ontario regulation 991, section 14. Which of the following provisions is NOT outlined in the Code of Conduct?

To maintain a Trust account for all trust money received.

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

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

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

#61. Section II- Liability Coverage of the Homeowners Comprehensive Policy provides coverage for Voluntary Payment for Damage to Property in which situation?

Damage to a ride on lawn mower rented from a local rent-all establishment.

Property of others damaged intentionally by the insured’s 10-year-old son.

Damage caused by a guest who backed an automobile into a portable barbecue which the insured had borrowed from a neighbour.

Theft from insured’s premises of a shotgun on loan from a local sporting goods store.

#62. The Government of Canada has four levels of travel advisories. Which is NOT one of them?

Take usual precautions

Avoid all travel

Take special precautions

Consular assistance unavailable in locate

#63. Under the Registered Insurance Brokers Act, a broker is obligated to disclose certain information to clients when negotiating insurance contracts. What MUST be disclosed to the client by the broker to comply with the legal requirements?

All underwriting guidelines used by the insurer

Any actual or potential conflict of interest related to the transaction

The commission amount the broker earns on every policy sold

The broker’s annual income and business expenses

#64. A broker is offered a substantial commission by an unlicensed insurer to sell its insurance policies. The broker is aware that dealing with unlicensed insurers can have legal consequences. How should the broker interpret this situation to ensure compliance with regulatory and legal requirements?

Accept the offer but verify if the insurer is planning to obtain a license shortly

Decline the offer because selling policies from an unlicensed insurer can lead to disciplinary action by RIBO

Accept the offer since unlicensed insurers can provide alternative coverage options

Decline the offer but maintain contact in case the insurer becomes licensed in the future

#65. A broker’s client who is a lawyer is looking for a policy to cover their professional services. What coverage would the broker recommend?

Commercial General Liability

Directors & offices

Errors and Omissions

Employer’s Liability

#66. Todd is insured with a facility association servicing carrier as Todd has too many at-fault claims and a few tickets. At their next renewal, Todd claims and tickets will no longer need to be rated for. Their insurance company sends them a letter to non-renew their policy. Is the insurance company allowed to do this?

No, although the tickets and claims are no longer rated for, Todd has had too many claims and is still not eligible for the standard market

No, the insurance company cannot cancel Todd’s policy

Yes, as Todd is no longer eligible for this market

Yes, but Todd has the option to stay with the current policy if Todd chooses to

#67. Michael owns two vehicles one has Direct Compensation Property Damage (DCPD) coverage, and the other does not. He lends the vehicle without DCPD coverage to his friends for the weekend. If his friend is involved in an at-fault collision, what coverage is applicable to the damages on Michael’s vehicle?

Michael insurance covers the damages regardless of the friend’s fault.

DCPD Coverage from the other vehicle automatically applies

Michael friends need to sign an OPCF-49 agreement not to recover for loss or damage from an Automobile Collision for Coverage

The damages are not covered under any circumstances

#68. You are an insurance broker receiving a call from a long-time client requesting adjustments to their auto policy to include a new vehicle. The client is not available to come to the office, so the transaction must be completed over the phone. The client expresses urgency in adding the vehicle today for coverage. To proceed with making the policy change while complying with RIBO’s guidelines on consent, what steps should you take?

Update the policy and make notes of the conversation in the client file.

Record the phone conversation as proof of consent and keep it in your records.

Require the client to follow up with a signed consent form sent via email or fax before proceeding.

Tell the client you will need to verify changes in writing for regulatory compliance.

#69. Which is NOT a common exclusion found in the homeowners policy wording?

Loss or damage to any property that has been illegally acquired.

Loss or damage caused by a burst pipe.

Loss or damage caused by an earthquake.

Loss or damage if the home has been vacant for more than 30 days.

#70. The contents of a building are valued at $250,000 and insured subject to 90% co-insurance for $125,000. The policy has a $5,000 deductible clause. A fire causes $90,000 damage; how much will the policy pay?

$45,000

$40,000

$90,000

85,000

#71. How many legal systems exists in Canada?

four

two

one

three

#72. To comply with RIBO By law No.3 any changes of employment must be reported to RIBO. Which procedure is NOT correct?

The brokerage they are leaving must notify RIBO that the broker is no longer employed with that firm.

The individual changing employment must report the change to RIBO when next renewing the registration.

The brokerage they are joining must notify RIBO that the broker is now employed with that firm.

The individual changing employment must notify RIBO within 10 days of the change.

#73. The Insurance uses specific definitions to describe various perils under Crime coverages. Which of the following would be considered a robbery loss?

A customer took merchandise from a store without paying for it.

A criminal smashed the glass in a jewellery display case, grabbed some of its contents and made off before he could be stopped.

A masked man threatened your insured with a metal bar and ordered him to empty the cash register. He then ran off with all the money.

A bookkeeper set up false accounting records to divert the funds into a personal offshore bank account.

#74. Which item is NOT covered under the standard equipment breakdown coverage?

Compressors

Boilers

Hot water tanks

Office water coolers.

#75. Who is protected by the “Standard Mortgage Clause” in a property insurance policy?

The insurer of the property.

The one who borrows the money

The one who lends the money and the insurer of the property

The Insured

#76. A building worth $100,000 is insured for $60,000 under a policy with an 80% co-insurance clause. Fire damages the building to the extent of $90,000. How much would the insurer pay?

$60,000

$67,500

$48,000

$50,000

#77. While attending a party, Sam, the broker started discussing the assets of an insured with other guests what Sam is in violation of?

Fair treatment of customer guidelines

Insurance Brokers conduct and Privacy act.

Privacy of information act

Personal information protection and electronic documents act (PIPEDA)

#78. Arman an insured returns to the office to find their delivery van was stolen and written off in an accident. Arman discover that one of their employees stole the vehicle. Arman has a garage automobile policy. What section of the policy could respond to this loss?

All perils

Comprehensive

Collision

Liability

#79. A claim for “Additional Living Expense” under a Homeowner Comprehensive policy would NOT be covered if what event occurred?

The insured incurs moving expenses after their home is severely damaged by fire.

The insured’s son starts a grease fire in the kitchen causing smoke damage to the entire house.

The insured’s home is infected with carpenter ants and the insured must move out until extermination procedures are completed.

The Fire Department prohibits access to your insured’s home for one week as a result of fire in a neighbouring home.

#80. Hari Purchased a brand-new car and in two months he has at an at-fault accident with a third-party vehicle. The car was taken to a repair shop and Hari was provided with a rental car. How long can Hari keep the rental Car?

Determined by the limit on the OPCF-20 endorsement.

As long as his car is in the repair shop

Determined by the limit on the OPCF-27 endorsement

As long as he wants to drive the rental car

#81. A prospect is adamant they only need a commercial general liability policy for an office space they are renting. The prospect shares that they have a substantial amount of equipment, and the broker explains that they will need additional coverage to insure the equipment, however they only agree to purchase a commercial general liability policy. What should the broker do?

Bundle the commercial general liability policy with a commercial property policy and present this to the client, as the only option

Decline to quote the policy and suggest the client call another brokerage to place the coverage

Provide a quote for a property and liability coverage, explain the benefits and have the client sign if they decide

Issue the commercial general liability policy as requested by the client

#82. Claudia contacts the broker requesting a binder certificate for the second mortgage with a private lender. What is NOT an underwriting concern with this request?

The lender is not regulated like charter banks.

Insured is going through a financial hardship.

Insured is staging a loss to alleviate financial problems

The lender is located in another province.

#83. Which benefits, or compensation is NOT payable as a standard accident benefit coverage under O.A.P.1 Owner’s policy?

Income replacement benefits

Uninsured automobile coverage

Death and funeral benefits

Medical rehabilitation and Attendant care Benefits

#84. Benwyn, a broker, has a client who plans to demolish their cottage and replace it with a new cottage. Benwyn has a lot of experience adding renovation riders to policies, but he has never underwritten one of this scope. What should Benwyn do?

Arrange for coverage through the builder’s commercial insurance policy.

Refer the client to the Brokers commercial lines department.

Speak to a colleague who has experience with this type of risk and ask for guidance.

Proceed with a quote using Benwyn’s renovation rider experience.

#85. Even though an insurer may have issued a Vacancy Permit on a vacant property certain policy coverage will no longer apply. Which of the following kind of loss would continue to be insured by the policy covering the property?

Water escape from the plumbing system

Windstorm damage to the roof

Breakage of glass

Vandalism

#86. The Liability section of the Homeowners Comprehensive policy provides coverage for certain financial obligations of the insured. Against which of the following obligations would the insured be protected?

Cost of investigation fees and defense of claims made against the insured for compensatory damage even if groundless

Liability of insured to pay a fine under a municipal by law

Liability for damage by burglary to a summer cabin your insured rents for their vacation and resulting from their negligence

Liability of the insured assumed under contract with another individual relating to any activities of the other individual

#87. A well-known professional football player contacts you for Travel Health insurance. The football player tells you they go for scuba diving while away and asks if the travel health policy will respond to a claim if the football player is injured in the water. How would you respond?

The claim would be denied as the football player is a professional athlete

The claim would be covered under all travel health policies

The exact circumstances of the injury occurring would determine whether or not a claim would be accepted

Travel health plan restrictions for sporting injury vary from insurer to insurer

#88. As a busy broker managing multiple client portfolios, you receive a policy update request a follow-up from a prospect, an urgent team meeting notice and an IT maintenance alert requiring a backup. Which task should you prioritize first to avoid disruptions?

Follow up with the prospective client to secure new business opportunities

Update the client policy as they need the changes implemented immediately

Back up all important files in response to the IT system alert to prevent data loss

Attend the urgent team meeting to stay informed about important company decisions

#89. Mahi lives with their friend Roxanne. Roxanne steals Mahi’s car and gets into an at fault accident. Which coverage will apply?

All Perils

Collision or Upset

Specified Perils

Comprehensive

#90. What is requirement for obtaining consent to collect, use, or disclose personal information from a client?

Written consent is necessary only if it involves financial disclosures

Consent can be obtained verbally if documented accordingly

Consent must always be sought in writing regardless of situation

Implied consent is satisfactory for routine mail communications

#91. While renewing policies, when is the best time for a broker to contact the client?

60 days prior to the renewal.

A week prior to the payment due date.

10 days before the effective date.

Once the insurer issues the renewal.

#92. An insurance broker agreed to bind liability coverage, the premium for which the applicant promised to pay the following week. Before any payment was made, a claim was made by a third party. What special action if any, would the insurer take?

Investigate the claim but take no further action.

Obtain a signed “waiver of subrogation” from the applicant insured.

Respond to the claim in accordance with the coverage bound by the broker.

Deny the claim because no premium had been paid.

#93. What is NOT an example of Equipment Breakdown for a commercial policy?

An engine for a generator is suddenly

Electrical Damage to a conveyor system as a result of a power surge.

A thermostat failure in a commercial freezer

Smoke Alarms working

#94. That partner has now moved in with her. Hilda wants to update her automobile policy. What type of changes is the insurer most concerned with?

Change in listed drivers

Change of risk address.

Change in use

Chained in annual kilometers.

#95. What is an example of a High Risks sports activity excluded under the Travel Health Insurance (THI) organization and Products?

Bungee Jumping

Skydiving

Horse riding.

Skiing

#96. Which statement regarding the Uninsured Automobile Coverage in your insured’s O.A.P.1 Owner’s Policy is CORRECT?

It provides coverage for liability to others in case your insured forgets to renew their policy.

It includes a certain amount of coverage for accidental damage to the insured’s automobile provided the owner or driver of the uninsured automobile is identified.

It includes a certain amount of coverage for accidental damage to the insured’s automobile caused by a hit and run automobile, where neither the owner nor driver of the other automobile is identified.

It only covers bodily injury but never accidental damage to the insured’s own automobile.

#97. When a claim is made under a policy which insures property the insured person is provided with a proof of loss form to complete. why is this done?

To place the onus on the insured to prove the loss and to help prevent fraudulent claims.

This document is necessary to take to the appraiser to determine the amount of the damage.

The completed document must be retained by the insurer for 24 months for auditing by fire department of insurance.

To describes the replacement value of the property damaged or destroyed.

#98. In which situation does the OPCF-20 provide coverage for transportation replacement?

Borrowing a vehicle from the dealership while the insured’s car is in service.

Renting a vehicle for a family vacation.

Renting a replacement when the insured’s spouse uses the vehicle for a business trip.

Renting a vehicle because of a covered at fault insured loss.

#99. Peter owns an auto repair garage. What type of policy does he need to cover the vehicles in his care, custody and control?

Commercial General Liability

Commercial Garage auto

Ontario Auto Policy

Blanket Fleet policy

#100. Statutory Conditions in an insurance policy are established by which of the following?

The insurance bureau of Canada.

The insurance brokers association of Ontario.

The registered insurance brokers act of Ontario.

The insurance act.

#101. Dmytro has a personal Automobile Insurance policy. While walking to the store, Dmytro is struck by Lisa’s vehicle, sustaining non-catastrophic injuries. Which policy would respond first to Dmytro’s injuries if any?

Lisa’s Automobile Insurance Policy

No coverage will respond because Dmytro was not driving a vehicle when the incident occurred

Dmytro’s Automobile Insurance Policy

Lisa’s Homeowner Policy

#102. Burglars enter the insured’s unlocked seasonal residence and steal some of the contents. Under the basic “Seasonal Dwelling fire & Extended Coverage” form the loss is:

Covered, up to $500 only for building damage

Covered, only if forcible signs of entry are visible

Covered, subject to policy deductible

Not covered

#103. How many hours of continuing education on a yearly basis is required for a RIBO level 1 Broker to maintain their license?

#104. Bob is operating a restaurant in downtown Toronto. He always keeps cleanliness of the restaurant and safety of his customers in mind. Angela whose left leg was in cast, visited the restaurant. She slipped and fell and injured. Angela files a lawsuit against the restaurant, what type of liability is this?

Contract liability

Commercial General Liability

Automobile liability

Personal liability

#105. Section II Liability coverage of homeowner policy provide voluntary property damage coverage in which of the following situations?

A window is deliberately broken by the insured who had locked himself/herself out of the house.

The insured garage is damaged by neighbor’s son who has backed into it with an automobile

Neighbourhood children damaged the insureds above ground pool

A neighbor’s window is broken by the insured’s teenager who is playing baseball in the backyard

#106. Kimberly has lost one of Kimberly’s diamond earrings and wishes to claim the loss. The earrings were not scheduled separately on Kimberly’s policy. What information would the broker provide with respect to Kimberly’s claim?

Kimberly can claim the value of one earing subject to Kimberly’s deductible and special limits off insurance on Kimberly’s policy.

Kimberly can claim for the loss of the pair of earrings as Kimberly’s policy contains a replacement cost endorsement.

Kimberly can't claim the value of the pair of earrings subject to Kimberly’s deductible and special limits of insurance on Kimberly’s policy.

Kimberly cannot claim for the loss of the pair of earrings as these were not scheduled on Kimberly’s property policy.

#107. To what extent does Coverage A2-Loss Assessment in a condominium unit owner’s comprehensive policy covers assessment against a unit owner?

Any assessment made by the condominium corporation as a contribution to cover the deductible in the condominium corporation insurance.

Any covered assessment made by the condominium corporation up to $10,000 on the limit specified in the unit owner’s policy declaration.

Any assessment not exceeding $25,000 made in respect of any issues sustained by the condominium corporation.

Any covered assessment made by the condominium corporation as additional insurance up to the limits specified on unit improvements and betterments.

#108. What is a form of Business Interruption Insurance?

All risks insurance

Named Perils Insurance

Builder’s risk insurance

Profits insurance

#109. Mother of 22-year-old Insured Called to cancel her son’s personal automobile policy as she is worried about the son’s reckless driving behaviour. What should the broker do?

Advise the mother to contact authorities

Cancel the policy due to breach of contract resulting from reckless behaviour.

Do not act on mother instructions

Cancel the policy as the mother has insurable interest on the policy.

#110. Certain Accident Benefits described in O.A.P.1 Owner’s Policy are not payable in all motor vehicle accidents. Which of the following would be fully entitled to the benefits?

A driver who does not have a valid driver’s license

A driver operating an automobile not insured under a motor vehicle liability policy

A driver operating a vehicle without the owner’s consent

A driver who is not the registered owner of the vehicle

Finish

This is a RIBO Final Exam–style quiz designed specifically for the RIBO Insurance Course. If you are preparing for the RIBO exam and looking for high-quality practice questions, this quiz is highly recommended.

📌 Important Notes:

Validity: 10 days from the date of purchase
Total Questions: 100
Format: Multiple Choice Questions (MCQs)
Objective: Pick the correct answer, just like the real exam

Perfect for last-minute revision and exam confidence ✅