Ribo License Practice Exam Quiz: Questions
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Take our RIBO license practice exam quiz with the questions provided below in order to excel at being the most knowledgeable in your field. RIBO is a self-governing, self-supporting organization of insurance brokers who practice from Ontario, Canada. It stands for Registered Insurance Brokers of Ontario and this quiz is going to assist you in making sure that you stay on top! Don't forget to share this quiz with your colleagues!
- 1.
What is the amount called that is refunded to the client if an insured cancels their policy?
- A.
Short rate.
- B.
Pro-rata.
- C.
Guaranteed refund.
- D.
Change.
Correct Answer
A. Short rate.Explanation
The correct answer is short rate. When an insured cancels their policy, they may be entitled to a refund of the premium they paid. The short rate is the amount refunded to the client, which is less than the pro-rata refund. The short rate takes into account the administrative costs and expenses incurred by the insurance company. It is calculated based on a predetermined formula and is often applied when the policy is canceled before its expiration date.Rate this question:
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- 2.
What is a fiduciary?
- A.
Bank
- B.
Dry Cleaner
- C.
Insurance Company
- D.
Insurance Broker
Correct Answer
D. Insurance BrokerExplanation
A fiduciary is a person or entity that is legally obligated to act in the best interest of another party. They must exercise a high level of care, loyalty, and trustworthiness when managing the other party's assets or finances. While banks, dry cleaners, and insurance companies may provide services to customers, an insurance broker specifically acts as a representative for clients in obtaining insurance policies. They have a fiduciary duty to their clients, ensuring that they provide unbiased advice and act in the client's best interest when recommending insurance products.Rate this question:
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- 3.
What covers employee infidelity?
- A.
3D policy
- B.
Employee security insurance.
- C.
Inside/Outside robbery insurance.
- D.
Extra expense insurance.
Correct Answer
A. 3D policyExplanation
A 3D policy covers employee infidelity. This type of policy provides coverage for losses caused by dishonest acts committed by employees, such as theft, fraud, or embezzlement. It is designed to protect the employer from financial losses resulting from the actions of their employees.Rate this question:
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- 4.
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.
Correct Answer
D. The legal process by which an insurer who has paid a loss pursues rights of recovery against a responsible third party.Explanation
Subrogation is the legal process through which an insurance company seeks to recover the amount it has paid for a loss from a third party who is responsible for causing the loss. In other words, if an insurer pays a claim to their insured, they may then pursue the responsible party to recoup the amount paid. This allows the insurer to avoid bearing the entire financial burden of the loss and holds the responsible party accountable.Rate this question:
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- 5.
Which of the following statements is TRUE?
- A.
Lyoyd's of London is not an 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.
Correct Answer
C. Stock companies are owned by shareholders.Explanation
The statement "Stock companies are owned by shareholders" is true. Stock companies, also known as corporations, are owned by shareholders who hold shares of the company's stock. Shareholders have ownership rights and can participate in the company's profits and decision-making through voting rights. This is a fundamental characteristic of stock companies and distinguishes them from other types of organizations.Rate this question:
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- 6.
Statutory conditions apply to ?
- A.
Burglary Insurance.
- B.
Liability Insurance.
- C.
Fire Insurance.
- D.
Marine Insurance.
Correct Answer
C. Fire Insurance.Explanation
Statutory conditions apply to Fire Insurance. This means that there are specific legal requirements and regulations that must be followed when providing coverage for Fire Insurance.Rate this question:
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- 7.
What is the purpose of the Hotline?
- A.
To forward claims information to OHIP
- B.
To arrest and stabilize the situation that caused the emergency.
- C.
To attempt to deny claims.
- D.
To direct clients to the closest medical facility.
Correct Answer
A. To forward claims information to OHIPExplanation
The purpose of the Hotline is to forward claims information to OHIP. This suggests that the Hotline serves as a means of communication between individuals and OHIP, allowing them to submit claims and provide necessary information for processing. It implies that the Hotline is a channel for efficient and organized handling of claims, ensuring that the necessary information reaches OHIP for further action.Rate this question:
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- 8.
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.
Correct Answer
B. An executor of an estate.Explanation
While an executor of an estate holds a position of trust and responsibility regarding the distribution of assets according to the deceased person's wishes, they are not typically considered fiduciaries in the legal sense. Fiduciaries are individuals entrusted with managing assets or obligations on behalf of others and are legally bound to act in the best interests of those they represent. Executors of estates may have fiduciary duties in certain contexts, but the role itself does not universally qualify as a fiduciary position.Rate this question:
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- 9.
Which of the following is TRUE?
- A.
Stock Mutual's are the purest form of insurance companies.
- B.
Lloyds of London's is not an Insurance company.
- C.
Proximate cause is the last even before an occurrence which leads to a loss.
- D.
Factory Mutual's specializes in the field of water loss prevention.
Correct Answer
B. Lloyds of London's is not an Insurance company.Explanation
Lloyds of London is not an insurance company. This statement is true because Lloyds of London is not an insurance company in the traditional sense. It is a market where multiple insurers come together to provide insurance coverage. Lloyds of London acts as a platform for insurance underwriters to offer specialized insurance policies and manage risks. It is known for insuring unique and high-value risks that may not be covered by traditional insurance companies. Therefore, it is correct to say that Lloyds of London's is not an insurance company.Rate this question:
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- 10.
A proof of loss:
- A.
Notifies an insurer of a claim.
- B.
Is a form an insurer completes when there has been a loss
- C.
Is a form an insured completes to describe what happened and the property that was lost
- D.
Is a form that needs to be signed by a notary for a claim to be paid
Correct Answer
C. Is a form an insured completes to describe what happened and the property that was lostExplanation
A proof of loss is a form that an insured completes to describe what happened and the property that was lost. This form is used to notify the insurer of a claim and provide detailed information about the loss. By completing this form, the insured provides essential information to the insurer, allowing them to assess the claim and determine the appropriate course of action.Rate this question:
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 29, 2024Quiz Edited by
ProProfs Editorial Team -
Dec 06, 2015Quiz Created by
Saqib Choudhry
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