100+ Free RIBO Level 1 Practice Questions

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2026 Statistics

Key Facts: RIBO Level 1 Exam

115

Total Questions

RIBO

75%

Passing Score

RIBO

3 hours

Time Limit

RIBO

$325

Exam Fee (CAD)

RIBO

Open Book

Exam Style

RIBO

The RIBO Level 1 exam is a 3-hour open-book test with 115 multiple-choice questions. It costs $325, requires a 75% score, and licenses you to practice as an Ontario insurance broker under supervision.

Sample RIBO Level 1 Practice Questions

Try these sample questions to test your RIBO Level 1 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Registered Insurance Brokers Act (RIB Act) of Ontario, which of the following individuals is legally required to hold a RIBO licence?

A.A salaried employee of an insurance company who adjusts property damage claims.

B.An insurance agent employed by a direct-writing insurer representing a single company.

C.An independent intermediary who solicits, negotiates, or procures insurance on behalf of clients with multiple insurance companies.

D.A customer service representative at a direct-writing firm who only provides quotes on their employer's products.

Explanation: Under the RIB Act, any person who acts as an insurance broker—defined as someone who negotiates, solicits, or procures insurance on behalf of others (the public) with multiple insurance companies—must be registered and licensed by RIBO. Insurance agents who represent only one insurer or group under common management, and claims adjusters, are regulated under the Insurance Act by the Financial Services Regulatory Authority of Ontario (FSRA) and do not hold RIBO licences.

2What is the primary legal distinction between an insurance agent and an insurance broker in Ontario?

A.An agent represents the insurance buyer, whereas a broker represents the insurance company.

B.An agent represents a single insurance company (or group under common management), whereas a broker represents the client and has contracts with multiple insurers.

C.Brokers are legally permitted to adjust claims, whereas agents are strictly prohibited from doing so.

D.Agents are required to maintain a trust account for premium collections, whereas brokers are exempt from trust regulations.

Explanation: An insurance agent represents the insurer and is contracted to sell only that insurer's products. An insurance broker represents the client (the insured) and acts as an independent intermediary, having agreements with multiple insurance companies to find the best coverage for the client.

3RIBO regulations mandate that all registered brokerages maintain at least two separate bank accounts. What are these two accounts?

A.A Premium Savings Account and a General Expense Account.

B.A Trust Account and an Operating Account.

C.A Commission Account and a Claims Escrow Account.

D.A Client Deposit Account and a Corporate Investment Account.

Explanation: RIBO regulations require all brokerages to maintain a Trust Account and an Operating (or General) Account. The Trust Account holds all insurance premiums collected from clients that have not yet been remitted to insurers, as well as unearned commissions. The Operating Account is used for the brokerage's daily business operations and expenses.

4Under RIBO regulations, when is a brokerage permitted to transfer commission funds from the Trust Account to the Operating Account?

A.Immediately upon receiving a post-dated check from the client.

B.Only after the net premium has been paid to the insurer.

C.Once the commission is earned, which is generally when the premium has been collected from the client or billed by the insurer.

D.At any time, provided the brokerage maintains a minimum balance of $10,000 in the Trust Account.

Explanation: Commission can only be withdrawn or transferred from the Trust Account to the Operating Account once it is earned. Commission is considered earned when the client has paid the premium or when the transaction has been officially billed and accounted for, preventing the use of unearned trust funds for operating expenses.

5Which of the following situations describes a 'trust deficit' under RIBO regulations?

A.The operating bank account balance falls below the total monthly payroll expenses of the brokerage.

B.The trust bank account balance plus trust receivables is less than the total trust liabilities (amounts owed to insurers and unearned commissions).

C.The net commission earned by the brokerage in a fiscal quarter is less than the projected budget.

D.The total equity of a sole proprietorship brokerage drops below $5,000 CAD.

Explanation: A trust deficit occurs when the assets in the trust account (cash in trust bank account plus valid trust receivables) are less than the liabilities (premiums owed to insurers plus unearned commissions due to clients or the brokerage). RIBO requires brokerages to eliminate any trust deficit immediately upon discovery.

6To maintain registration, a RIBO brokerage operating as a sole proprietorship must maintain a minimum equity (net working capital) of:

A.$2,500

B.$5,000

C.$10,000

D.$20,000

Explanation: Under RIBO regulations, a brokerage operating as a sole proprietorship must maintain minimum equity (net working capital) of $5,000. For corporations or partnerships, the requirement is higher (typically $10,000) to ensure financial solvency and protect consumers.

7How many continuing education (CE) hours must a licensed RIBO broker complete during each licensing year?

A.5 hours

B.8 hours

C.10 hours

D.15 hours

Explanation: Every licensed RIBO broker must complete a minimum of 8 continuing education (CE) hours in each licensing year (which runs from October 1 to September 30 of the following year) to maintain their registration.

8Which of the following correctly outlines the specific category minimum requirements for a broker's annual continuing education (CE) credits under RIBO by-laws?

A.All 8 hours must be in the 'Technical' category.

B.At least 1 hour must be in 'Personal Development' and at least 3 hours in 'Ethics'.

C.The 8 hours can be in any category, including Technical, Personal Development, Agency Management, or Ethics, with no minimum category requirements.

D.A minimum of 3 hours must be in the 'Technical' category, and 1 hour must be in the 'Ethics' category.

Explanation: Under RIBO guidelines, of the 8 mandatory annual CE hours, a broker must complete a minimum of 3 hours in the 'Technical' category and a minimum of 1 hour in the 'Ethics' category. The remaining hours can be distributed among Technical, Ethics, Personal Development, or Agency Management.

9A licensed broker wants to pay a referral fee to an unlicensed real estate agent for referring a home insurance client. Under the RIB Act, this is:

A.Permitted, provided the referral fee is less than $100 CAD.

B.Permitted, if the real estate agent discloses the fee to the client.

C.Strictly prohibited under any circumstances.

D.Permitted only if the brokerage obtains written approval from RIBO.

Explanation: The RIB Act strictly prohibits licensed insurance brokers from paying any commission, salary, referral fee, or other compensation to any person who is not licensed as an insurance broker (or agent) under the Act for soliciting or negotiating insurance. Sharing commissions or paying referral fees to unlicensed individuals is misconduct.

10Under the RIBO Code of Conduct, what must a broker do if they identify a conflict of interest in a transaction?

A.Proceed with the transaction but charge a lower commission rate.

B.Immediately disclose the conflict in writing to the client and obtain their consent to proceed.

C.Place the policy with the insurer that offers the highest premium to ensure the risk is covered.

D.Transfer the client's file to an unlicensed administrator within the brokerage.

Explanation: The RIBO Code of Conduct requires brokers to avoid conflicts of interest. If a conflict does arise (such as placing business with an insurer where the broker has a financial interest, or insuring a close relative), the broker must fully disclose the nature of the conflict in writing to the client and obtain the client's written consent before proceeding.

About the RIBO Level 1 Exam

The RIBO Level 1 Entry-Level Broker Exam is the gateway for licensing as an insurance broker in Ontario. Administered by RIBO, this exam evaluates knowledge across five main domains: RIBO Act and regulations (ethics, licensing, brokerage management), Ontario Automobile Policy (O.A.P. 1) coverages and Statutory Conditions, Habitational policies (including Homeowners, Tenant, Condo and Statutory Conditions), Commercial Property and General Liability, and Travel Insurance. A score of 75% is required to pass, and successful candidates are licensed as 'Acting under Supervision' brokers.

Assessment

115 multiple-choice questions (100 scored, 15 unscored; open-book, online/in-person)

Time Limit

3 hours (180 minutes)

Passing Score

75% (75/100 scored questions)

Exam Fee

$325 CAD (Registered Insurance Brokers of Ontario (RIBO))

RIBO Level 1 Exam Content Outline

22%

Ontario RIB Act, Regulations, and RIBO By-laws

Ethics, licensing requirements, trust account rules, broker duties, and professional standards.

25%

Ontario Automobile Insurance (O.A.P. 1)

Auto policy sections, liability coverages, SABS accident benefits (including 2026 reforms), DCPD, and Statutory Conditions.

25%

Habitational Property Policies

Homeowners (Comprehensive, Broad, Basic), Tenant and Condo policies, property exclusions, and Statutory Conditions (Property).

23%

Commercial Property and Liability

Commercial General Liability (CGL), commercial property forms, co-insurance calculations, business interruption, and surety bonds.

Travel Insurance

Out-of-province medical coverage, pre-existing condition stability clauses, trip cancellation, and trip interruption.

How to Pass the RIBO Level 1 Exam

What You Need to Know

Passing score: 75% (75/100 scored questions)
Assessment: 115 multiple-choice questions (100 scored, 15 unscored; open-book, online/in-person)
Time limit: 3 hours (180 minutes)
Exam fee: $325 CAD

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

RIBO Level 1 Study Tips from Top Performers

1Learn how to navigate the O.A.P. 1 and RIB Act quickly. Do not waste time reading entire sections during the exam; use the reference for validation.

2Understand the co-insurance formula deeply: (Amount Carried / Amount Required) x Loss. It is a guaranteed calculation question.

3Pay attention to the SABS 2026 reforms: remember that only medical, rehabilitation, and attendant care benefits remain mandatory, while other accident benefits are now optional.

4Memorize the 15 Statutory Conditions for Property and the 10 Statutory Conditions for Automobile policies.

Frequently Asked Questions

What is the format of the RIBO Level 1 exam?

The exam consists of 115 multiple-choice questions, out of which 100 are scored and 15 are ungraded pilot questions. It is an open-book exam, and you are provided access to a digital reference of the O.A.P. 1, RIB Act, and By-laws during the test.

What is the passing score, and how long is the exam?

You must score at least 75% (75 out of the 100 scored questions) to pass. The time limit is 3 hours (180 minutes).

What happens after I pass the RIBO Level 1 exam?

You will receive an 'Acting under Supervision' broker licence. To remove this restriction and operate independently, you must gain experience and pass the RIBO Level 2 (Unrestricted Technical) exam.

What are the continuing education (CE) requirements for a RIBO broker?

Licensed brokers must complete 8 hours of CE each year between October 1 and September 30. A minimum of 1 hour must be in the Personal Development or Agency Management category, and 3 hours must be in the Ethics category.