IIC RIBO-LEVEL-1 Online Practice Questions and Exam Preparation

IIC RIBO-LEVEL-1 Online Questions & Answers

• Question 111:

  A client is angry because an insurer has not answered a coverage question by the promised time.

  Which response best reflects relationship management?

  A. Listen to the concern, acknowledge the delay, explain the next follow-up step, and escalate if the issue requires additional help.
  B. Tell the client to stop calling because the insurer controls all timing.
  C. Promise an answer that day even though the broker has no reliable information.
  D. Avoid recording the complaint so the brokerage file does not look negative.
  A. Listen to the concern, acknowledge the delay, explain the next follow-up step, and escalate if the issue requires additional help.

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  Explanation

  Relationship management requires listening, acknowledging the concern, communicating the next step, and escalating when needed. The broker should not dismiss the client, promise an answer without a reliable basis, or avoid documenting a complaint. Calm, accurate, and timely communication supports trust and service continuity.

• Question 112:

  During a routine day at the brokerage, you receive an urgent call from a client requesting immediate assistance with a claim. At the same time, a notification pops up on your computer about a software update needed to maintain system security. You must balance these competing priorities effectively while adhering to cyber security protocols.

  What is the FIRST action you should take to ensure both customer service and cyber security are addressed?

  A. Start the software update immediately to ensure security.
  B. Contact IT to assess the urgency of the software update.
  C. Pause and read the full details of the software update notification.
  D. Confirm receipt of the client's request and begin processing the claim.
  D. Confirm receipt of the client's request and begin processing the claim.

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  Explanation

  A claim request from a client is immediate service work, so the broker should first acknowledge and begin handling the claim while still following cybersecurity procedures for system updates. The update can be assessed or scheduled appropriately, but ignoring the client to study the pop-up first would not meet the claims service expectation. The key is prioritizing the urgent client claim without disregarding security obligations.

• Question 113:

  Angela has an automobile policy with Maple Insurance that renews on August 1, 2026. Before July 1, 2026, Angela had Income Replacement Benefits, Caregiver Benefits, and Housekeeping Benefits included in her policy. Angela does not request any changes.

  Under the updated Statutory Accident Benefits Schedule (SABS), what happens to these benefits after July 1, 2026?

  A. The benefits continue until Angela's renewal date.
  B. The benefits end on July 1, 2026 unless Angela purchases them as optional benefits.
  C. The benefits continue automatically as optional benefits with the same coverage levels that Angela had before July 1, 2026.
  D. The benefits change automatically to the lowest available optional limits.
  A. The benefits continue until Angela's renewal date.

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  Explanation

  For an existing policy that renews after July 1, 2026, benefits already included before the reform are treated as continuing until the renewal date unless the policy is changed earlier. Angela's policy renews August 1, so the existing benefits do not simply disappear on July 1. The broker should still review the reform and renewal choices with the client before renewal.

• Question 114:

  Rashid has purchased a new home that has a woodstove but no current Wood Energy Technology Transfer (WETT) inspection. Coverage is needed for the home closure in 14 days. Company ABC has agreed to provide insurance as long as the WETT inspection is provided within 30 days of possession.

  What should the Broker do?

  A. Advise Rashid that the WETT inspection is required but no further action is needed.
  B. Advise Rashid to remove the woodstove upon possession, so that they can avoid the hassle of obtaining the WETT inspection.
  C. Advise Rashid of the inspection requirement and that the insurer may require removal of the unit if it does not pass the WETT inspection.
  D. Leave the existence of the woodstove off the application and policy until such time as a WETT inspection is completed.
  C. Advise Rashid of the inspection requirement and that the insurer may require removal of the unit if it does not pass the WETT inspection.

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  Explanation

  The woodstove is a material underwriting concern, and the insurer has made coverage conditional on receiving a WETT inspection after possession. The client must understand both the inspection requirement and the possible consequence if the unit fails. Hiding the woodstove, advising removal merely for convenience, or doing nothing after mentioning the inspection would not meet the broker's duty of care.

• Question 115:

  Misrepresentation discovered by an insurer may result in the policy being voided.

  What circumstance must the insurer show occurred to legally void the policy?

  A. The misrepresentation was malicious.
  B. The misrepresented fact was material to the risk.
  C. The misrepresentation was the result of extreme carelessness by the insured's broker.
  D. The misrepresented fact was the product of collusion between the insured and the broker.
  B. The misrepresented fact was material to the risk.

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  Explanation

  To void a policy for misrepresentation, the insurer must show that the misrepresented fact was material to the risk. Materiality means the fact would influence underwriting, rating, or acceptance of the risk. Malice, broker carelessness, or collusion may be relevant facts in some disputes, but materiality is the required coverage principle being tested.

• Question 116:

  Bob is operating a restaurant in downtown Toronto. He always keeps cleanliness of the restaurant and safety of his customers in mind. Angela, whose left leg was in a cast, visited the restaurant. She slipped and fell and injured herself.

  If Angela files a lawsuit against the restaurant, what type of liability is this?

  A. Commercial General Liability.
  B. Automobile Liability.
  C. Contract Liability.
  D. Personal Liability.
  A. Commercial General Liability.

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  Explanation

  A slip and fall injury to a customer on restaurant premises is a commercial general liability exposure. The claim alleges bodily injury arising from the business premises or operations. It is not automobile liability, contract liability, or personal liability because the loss arises from a business operation.

• Question 117:

  According to the Registered Insurance Brokers (RIB) Act, how long MUST Brokers maintain records of their transactions?

  A. 4 years.
  B. 5 years.
  C. 6 years.
  D. 7 years.
  C. 6 years.

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  Explanation

  Broker transaction records must be retained long enough to preserve an audit trail for client instructions, placements, renewals, endorsements, and other insurance dealings. Six years is the required retention period under the RIB framework.

  Shorter periods would fail the regulatory record-keeping expectation, while a seven-year answer overstates the stated requirement.

• Question 118:

  A client is currently insured with a competing brokerage. They approach you to move their business because they are unhappy with their current broker's lack of communication.

  Before accepting the business and issuing a new policy, what is the most appropriate professional step to take in managing this transition?

  A. Immediately sign the client and tell them to cancel their old policy via a phone call to the other broker.
  B. Request a signed "Letter of Authority" or "Broker of Record Letter" from the client and advise them on the proper steps to provide a "Lapse of Insurance" notice to the previous broker.
  C. Offer the client a "Switching Bonus" to cover any short-rate cancellation fees from the other brokerage.
  D. Contact the other broker directly to explain that you are taking their client and demand the client's file.
  B. Request a signed "Letter of Authority" or "Broker of Record Letter" from the client and advise them on the proper steps to provide a "Lapse of Insurance" notice to the previous broker.

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  Explanation

  Before taking over existing business, the broker should obtain proper written authority from the client and advise on orderly transition steps to avoid gaps or improper cancellation. A broker of record or letter of authority confirms the client's instruction. Offering a switching bonus, demanding another broker's file, or telling the client to cancel casually creates professional and coverage risks.

• Question 119:

  A broker is explaining basic risk management.

  Which client action is the clearest example of transferring financial risk?

  A. Buying an insurance policy for the exposure.
  B. Installing a monitored alarm system.
  C. Accepting a higher deductible and paying small losses personally.
  D. Stopping the activity that creates the exposure.
  A. Buying an insurance policy for the exposure.

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  Explanation

  Buying insurance transfers the financial consequences of covered losses to an insurer in exchange for premium, subject to policy terms. Installing an alarm is risk control, accepting a deductible is retention, and stopping the activity is avoidance. The selected response is the clearest example of risk transfer.

• Question 120:

  Under the "What Automobiles Are Covered" section of O.A.P. 1 Owner's Policy, a newly acquired automobile is automatically covered for a period of 14 days. This automatic coverage is limited to:

  A. a vehicle which replaces one already insured under the policy and not to additional automobiles.
  B. private passenger vehicles which are mainly used for pleasure purposes.
  C. private passenger vehicles and no other types of automobile.
  D. those coverages which applied to the vehicle replaced, or to all of the insured's vehicles if it is an additional automobile.
  D. those coverages which applied to the vehicle replaced, or to all of the insured's vehicles if it is an additional automobile.

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  Explanation

  Automatic coverage for a newly acquired automobile extends the coverages that applied to the replaced automobile, or if it is an additional automobile, the coverages that apply to all insured automobiles under the policy. The rule is not limited only to replacement vehicles or private passenger use in the way the other choices suggest. The broker must still ensure timely notification.