Free RIBO Level 1 Exam Flashcards

RIBO registers brokers and brokerage firms; FSRA licenses insurance agents and regulates insurers. The roles are related but not interchangeable.

No. The candidate must also obtain employment with a RIBO-registered brokerage, meet suitability requirements, and receive RIBO registration.

Level 1 brokers act under supervision within a RIBO-registered brokerage after completing registration requirements. Higher licence levels have separate qualification requirements; passing Level 1 alone does not remove supervision.

Only when registered under the Registered Insurance Brokers Act. An exam result or job offer alone does not confer the protected status.

The insurer relies on accurate facts to assess and price the risk. Withholding a material fact can affect underwriting, coverage, and the client’s trust.

Clearly explain the real or potential conflict and relevant compensation or limited market access so the client can make an informed decision. Confirm required disclosures in writing and retain a record of the disclosure.

A quote or application is not itself confirmation of coverage. The broker must know the insurer’s authority and conditions and document when coverage actually takes effect.

Treat it as trust money under the applicable rules; do not use one client’s money to fund another client’s obligation or the brokerage’s operations.

Gather essential facts and promptly give first notice to the insurer under brokerage procedure, then explain the claim process without guaranteeing the outcome.

A physical hazard is a tangible condition that increases loss likelihood or severity; a moral hazard concerns dishonesty or intentional behaviour affecting the risk.

Restore the insured financially within the policy’s terms and limits, rather than create a profit from the loss.

The client must have a legally recognized stake in the insured person or property. Establishing the interest helps identify the proper insured and coverage need.

Record the client’s exposures, options explained, exclusions and limits discussed, conflicts disclosed, decision, and any binding confirmation; protect the file’s confidentiality.

Third-party liability, statutory accident benefits, uninsured automobile, and DCPD are standard sections; a policyholder may elect not to claim DCPD.

A person other than the insured who suffers covered injury or property damage for which the insured is legally responsible.

Accident benefits address eligible injuries to insured persons regardless of fault; liability addresses claims by others for harm the insured caused.

Medical, rehabilitation, and attendant care benefits remain mandatory. Other accident benefits are optional for new policies.

Explain and offer the optional coverage; do not assume it is automatically included simply because it was part of older standard accident-benefit packages.

The named insured, their spouse, their dependants or spouse’s dependants, and persons listed as drivers on the insured automobile, subject to the policy rules.

For a qualifying Ontario collision involving another appropriately insured vehicle, the insured claims eligible vehicle damage from their own insurer rather than the at-fault driver’s insurer.

Confirm the Ontario location, involvement of another qualifying insured vehicle, fault allocation, and whether the client elected not to claim DCPD.

Collision or upset covers vehicle damage from collision with another object or overturning. Comprehensive covers losses other than collision or upset, including specified perils, falling objects and vandalism, subject to policy exclusions and deductibles.

It may respond to injury or death caused by an uninsured or unidentified motorist and certain vehicle damage caused by an identified uninsured motorist.

A new use such as commercial delivery can change the risk and underwriting terms; the broker should notify the insurer and verify suitable coverage.

An Ontario Policy Change Form is an endorsement that changes the standard policy. Check the actual form and selected coverage before describing its effect.

Comprehensive generally covers property against risks except stated exclusions; a named-perils form responds only to perils listed in the contract.

The dwelling generally receives comprehensive coverage while contents receive named-perils coverage; always confirm the actual policy wording.

The tenant’s own contents and personal liability, with additional living expenses where a covered loss makes the unit unliveable.

The corporation’s policy focuses on common property and standard building elements; the unit owner may need contents, improvements, personal liability, and loss-assessment coverage.

Replacement cost concerns the cost to repair or replace with comparable property under policy conditions; actual cash value reflects factors such as depreciation or market value.

Ordinary contents coverage may have special limits or conditions; scheduling or an endorsement may be needed for the client’s full exposure.

They are different causes of water damage and often require distinct optional coverage. A general statement that “water is covered” can mislead.

Business property and liability may exceed or fall outside personal-policy coverage; disclose the activity and consider an endorsement or business policy.

It can pay qualifying extra costs of living elsewhere when an insured loss makes the residence unliveable, subject to the policy’s limits and conditions.

Occupancy changes the risk and may require a different policy or endorsement; the broker should notify the insurer before assuming coverage continues.

It addresses covered legal responsibility for accidental injury or property damage to others, rather than repairing the insured’s own home.

Preserve evidence of the damage and reasonable loss-related receipts, take steps to prevent further damage, and follow the policy’s notice and proof requirements.

Property insurance addresses covered loss to the business’s own property; commercial general liability addresses covered claims by others for injury or damage.

A covered interruption tied to insured property damage under the form, plus its waiting period, limits, and period-of-restoration terms.

They address different income-loss periods or costs during recovery; the form should match how the client would keep operating after damage.

It encourages adequate insurance relative to the property’s value; underinsurance can reduce a partial-loss payment.

Divide the limit carried by the limit required by the clause, capped at 1; apply that factor to the covered loss, then account for the policy deductible and limit.

A premises property policy may not fully cover portable property or goods moving between locations; a floater or transit coverage may be needed.

Professional liability addresses covered errors in professional services; CGL mainly addresses covered third-party bodily injury and property damage.

It summarizes evidence of insurance at issuance; it does not itself amend coverage, create an additional insured, or override the policy wording.

Employee theft or other dishonest acts may need a separate crime insuring agreement and controls; ordinary property coverage should not be assumed to answer.

Identify operations, contractual obligations, possible injury or damage severity, locations, and insurer terms; compare the exposure with available limits.

Medical coverage concerns eligible treatment or assistance during travel; cancellation coverage concerns eligible prepaid trip costs when a covered event prevents departure.

Those facts can affect eligibility, stability requirements, and claim decisions; the exact policy wording and medical questionnaire control.

Check the current Government of Canada advisory and the insurer’s exclusion or coverage conditions; an advisory can affect whether a claim is covered.