Question 1

A broker is approached by a high-net-worth client who wants to place their unique collector car insurance with an unlicensed US-based insurer because the rates are significantly lower. What is the broker's primary obligation?

Options :

A : Place the coverage as requested to ensure the client is satisfied with the savings.

B : Refuse the business because brokers are strictly prohibited from dealing with unlicensed insurers.

C : Advise the client of the risks, obtain a signed "Unlicensed Insurer" disclosure, and ensure no licensed market is available.

D : Tell the client to contact the US insurer directly so the broker can avoid any legal responsibility.

Answer: C

Question 2

According to the Statutory Conditions of a Fire Policy, Statutory Condition 2 - Property of Others states that the insurer is NOT liable for property owned by others unless:

Options :

A : The property is worth less than $500.

B : The interest of the insured in that property is specifically stated in the contract.

C : The property is located in the insured’s backyard.

D : The owner of the property also has their own insurance.

Answer: B

Question 3

Many automobile insurers have introduced User-Based Insurance (UBI) programs (e.g., Telematics) to help determine rating and insurance premiums. Which MOST accurately describes elements that a UBI program tracks?

Options :

A : Time of day driven and rapid acceleration.

B : Number of drivers in the vehicle and hard braking.

C : Where the vehicle is driven and gross vehicle weight.

D : Number of kilometers driven and occupation.

Answer: A

Question 4

The RIBO Code of Conduct is outlined in Ontario Regulation 991, Section 14. Which provision is NOT outlined in the Code of Conduct?

Options :

A : To maintain a Trust Account for all trust money received.

B : To be both candid and honest when advising the member's client.

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

D : To be competent to perform the services which the member undertakes on the client's behalf.

Answer: A

Question 5

A broker discovers the client does not have sewer back up coverage, and that the location now qualifies for it. What should the broker do next?

Options :

A : Notify the client 30 days prior to renewal, offer to quote & add.

B : Immediatley add the coverage, notify the client.

C : Notify the client immediately, quote sewer backup, offer to add.

D : Notify the client 60 days prior to renewal, offer to quote & add.

Answer: C

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