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RIBO Exam Questions with Correct Answers.
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RIBO Exam Questions with Correct Answers.
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RIBO Exam Questions with Correct AnswersWhat are the five main sections of an insurance policy? Correct Answer-
1. Coverage Summary
2. Insuring Agreements
3. Statutory Conditions
4. Policy Conditions
5. Signature Clause
Policy Conditions Correct Answer-Provisions that state the rights and
duties of the insured or insurer.
Insuring agreements state Correct Answer-1. Subject Matter of
Insurance
2. Exclusions
3. Perils insured against
4. Circumstances where insured receives proceeds of insurance
Salvage Correct Answer-Property saved from loss
Also the process of taking steps to reduce the amount of loss.
Mortgagee Correct Answer-Person who gives a mortgage to purchase
real estate
,Trailers are covered under Correct Answer-Liability, accident benefits,
uninsured automobile
Material Fact Correct Answer-A fact that would affect a contract of
insurance enough to influence an insurer's decision regarding whether to
accept or reject the risk or the premium to be set. Material facts must be
disclosed by the applicant if asked about.
Misrepresentation Correct Answer-Incorrect or missing information
about a material fact that is offered, or not, by an applicant or insured
with or without the intent to mislead.
Exposure Correct Answer-The danger of loss, particularly fire, arising
from what happens to another risk close by.
Also the total amount the insurer could become liable for under a policy.
Quebec 1st, 2nd, 3rd Correct Answer-1st: Principal
2nd: Intermediary
3rd: Insured
What conditions must exist for a contract? Correct Answer-1.
Agreement (Offer&Acceptance)
2. Consideration
3. Genuine intent to form a contract
4. Legal capacity to contract
,5. Legality of purpose
Which factors determine enforceability? Correct Answer-Legality of
Purpose
Consideration
Capacity to contract
Replacement Value Correct Answer-The current market value of the
cost to replace the lost or damaged insured property.
What are the 3 unique elements of an insurance contract? Correct
Answer-Insurable interest, indemnity, utmost good faith
Proximate Cause Correct Answer-The immediate and effective cause of
the loss which in a chain of circumstances leads naturally and directly to
the loss
-Insured peril has to cause the loss.
-Like a domino effect
Ex.Fire
Remote Cause Correct Answer-A cause which is not the proximate
cause.
Ex. Smoking in the house
, Immediate Cause Correct Answer-The last link the chain of events is
known as the immediate cause.
Ex. The cigarette
Excess Insurance Correct Answer-Insurance that does not participate
until all other similar insurance on the same subject is exhausted or until
the loss exceeds a previously agreed upon amount.
Statutory Conditions Correct Answer-APPLY TO FIRE POLICIES.
Special prescribed and standardized conditions that the provincial
insurance acts require to be included in fire, automobile, and accident
and sickness policies (Not included in commercial general liability
policies). The statutory conditions must be identified and printed in
every fire policy; however conditions will still govern the policy even in
their absence
Direct Compensation for Property Damage (DCPD) Correct Answer-
Covers damage of an automobile to the extent that the insured is not at
fault.
-Even though someone else caused the damage the insured person
collects directly from their insurer and not the person that caused the
accident.
What are the minimum coverages required in Ontario? Correct Answer-
1. Liability
2. Accident Benefits
3. Direct compensation property damage
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