Ribo License Practice Exam Quiz Questions
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- 1.RIBO regulations stipulate that a broker must provide a policy or certificate of insurance to an insured within a certain period of time. What is the length of that period?
- A.
10 days.
- B.
21 days .
- C.
30 days.
- D.
20 days.
- 2.Of the following, what needs to be reported to RIBO?
- A.
An Increase in the broker's yearly salary.
- B.
A broker's change of address.
- C.
A broker's errors and omissions insurance policy has been non-renewed.
- D.
The dollar amount of the brokers Trust Account at 30 days intervals.
- 3.
- A.
A member shall be both candid and honest when advising a client.
- B.
A member shall encourage public respect for and try to improve the practice of the member's vocation.
- C.
A trust account must be maintained at a safe institution.
- D.
A member shall not allow outside interests to jeopardize their integrity, independence or competence.
- 4.Upon successful completion of this exam, you may qualify for registration as a broker. Your license will be restricted to "acting under supervision". Which of the following must accurately describes the imposed conditions?
- A.
You are restricted to selling accident & sickness insurance only.
- B.
If your Principal Broker fails to complete his required education you may have to give up your license until he completes it.
- C.
You are restricted to selling travel and life insurance only.
- D.
For 24 months from the date of registration as a member, you cannot be the designated Individual and cannot control trust funds.
- 5.What is an allowed activity without a RIBO license?
- A.
Acting as an insurance agent, rather than an insurance broker.
- B.
Soliciting insurance business on behalf of a principal broker.
- C.
Providing risk management services including claims assistance where required.
- D.
Lawyers, accountants, or actuaries acting in their professional capacity.
- 6.What can a new broker, acting under supervision do?
- A.
Solicit insurance in Ontario to the public.
- B.
Make a false certificate relating to registration, whether orally or in writing.
- C.
Provide cover/binder notes at any time.
- D.
Be a designated individual and control trust funds.
- 7.Which of the following does NOT define misconduct?
- A.
Using advertising methods that are dishonorable.
- B.
Rebating.
- C.
Payment or acceptance of a referral fee.
- D.
No person shall act as an insurance broker unless the person is a registered insurance broker.
- 8.RIBO regulations stipulate how long a broker has to issue a policy to an insured. How long is that time?
- A.
60 days.
- B.
15 days.
- C.
30 days.
- D.
21 days.
- 9.Following Registration as an insurance broker , an individual:
- A.
Is required to report any changes in status only at each renewal of registration
- B.
Is required to ensure that any change in his/her status is included in the next position report filed by his/her employer
- C.
Must confirm in writing every 3 months to RIBO that there has been no change in the information originally filed
- D.
Must notify RIBO if any information on the original application for registration or renewal has become obsolete, Including a change in employer and file and notice correcting this correcting the information within 30 days of the change
- 10.The Ribo act grants to the discipline committee of RIBO power to impose penalties on members found guilty of misconduct which is defined under section 15 of Regulation 991. Which of the following is not defined as 'Misconduct' ?
- A.
Failure to carry on business in a manner consistent with the Code of Conduct
- B.
Using an illustration, circulation or memorandum to represent the terms, benefits or advantages of any policy or contract of insurance
- C.
The payment of any referral fee or finder's fee to any person who is not a registered insurance broker or not registered or licensed under the laws of any jurisdiction to act as an intermediary for insurance other than life insurance
- D.
Providing false or misleading information to RIBO
- 11.What is NOT a fiduciary?
- A.
A person who makes good the obligations to the Obligee if the principal fails to do so.
- B.
An executor of an estate.
- C.
A trustee in bankruptcy.
- D.
A person to whom the administration of something is entrusted for the benefit of another.
- 12.What is a fiduciary?
- A.
Bank
- B.
Dry Cleaner
- C.
Insurance Company
- D.
Insurance Broker
- 13.Which of the following statements is TRUE?
- A.
Lyoyd's of London is not and insurance market.
- B.
Factory Mutual's will only insure factories.
- C.
Stock companies are owned by shareholders.
- D.
Assessment or Premium Note Mutual's are the purest form of crown corporations.
- 14.Statutory conditions apply to ?
- A.
Burglary Insurance.
- B.
Liability Insurance.
- C.
Fire Insurance.
- D.
Marine Insurance.
- 15.What is an example of a consequential loss?
- A.
The immediate and effective cause of a loss.
- B.
A hail storm causes damage to the roof on your season residence.
- C.
Faulty wiring causes a fire in your home.
- D.
A windstorm causes a tree to blow down cutting the electricity used to power a freezer and the food in the freezer spoils.
- 16.What is the correct definition of A.C.V?
- A.
The current cost of replacing an article with a similar one in the same condition.
- B.
A requirement of all contracts in the common law provinces.
- C.
The insurer pays full costs even if these exceed the amount of insurance for coverage "A".
- D.
The current cost of replacing an article with one of like kind and condition taking into account any sentimental value to the insured.
- 17.The statutory Conditions are set out by?
- A.
R.I.B.O Insurance
- B.
The Provincial Insurance Act.
- C.
R.I.B Association.
- D.
The Federal insurance act.
- 18.Which of the following would be considered burglary?
- A.
A person hides in a store until it is closed then steals stuff and forcibly leaves the building.
- B.
An employee steals form their employer.
- C.
A violent mob storms into a store and takes stuff.
- D.
A person quietly walks out without paying for items during store hours.
- 19.Which of the following is NOT considered a peril?
- A.
Burglary.
- B.
Fire.
- C.
Gasoline.
- D.
Windstorm.
- 20.Which of the following is NOT discussed between the broker and the Insurance company?
- A.
Brokers hours of work.
- B.
Premium collections.
- C.
Credit terms.
- D.
Acceptable classes of risk.
- 21.Which of the following is NOT a bailee?
- A.
A Dry cleaner.
- B.
A Computer repair shop.
- C.
A person who leaves his suit with a tailor for mending.
- D.
A valet parking service.
- 22.What is subrogation?
- A.
Property saved from a loss.
- B.
The sharing of loss between two or more insurance companies covering the same risk.
- C.
Not considered to be a principle that reinforces indemnity.
- D.
The legal process by which an insurer who has paid a loss pursues rights of recovery against a responsible third party.
- 23.Which of the following does NOT require Statutory Conditions?
- A.
Automobile Policy
- B.
Homeowner's Policy
- C.
Accident and sickness policy.
- D.
Commercial liability policy.
- 24.Which best describes the "Lessor" of a building?
- A.
The Owner of a building
- B.
The Owner of a unit who rents it out to a tenant.
- C.
A person renting a unit in a high-rise condominium
- D.
The owner who occupies an entire building
- 25.What is the best definition of a mortgagee?
- A.
A person who owes money.
- B.
To whom money is owed.
- C.
A document stating money is owed to a person.
- D.
An Insured.
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