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

IIC RIBO-LEVEL-1 Online Questions & Answers

• Question 121:

  When not connected to a vehicle, an uninsured parked trailer causes a liability loss.

  Which policy would respond to this loss?

  A. Home, condominium or tenant policy.
  B. The automobile policy.
  C. Business policy.
  D. There is no coverage available.
  A. Home, condominium or tenant policy.

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  Explanation

  When a trailer is detached from a vehicle and creates a liability loss while parked, liability may fall under a home, condominium, or tenant policy depending on wording. The automobile policy is usually tied to use or operation as an automobile or attached trailer. The question focuses on the detached, non-vehicle liability exposure.

• Question 122:

  John's Excavating commercial liability policy shows the description of operation as construction. John advises his Broker that he will be doing some snow removal for a period of 60 days.

  What should John's Broker do?

  A. Advise the client that no action is required as the snow removal is being done for a short period of time.
  B. Advise the client there is automatic coverage under the Commercial General Liability policy for additional operations.
  C. Advise the client that the change in operations will be reported to the insurance company.
  D. Advise the client to delay the snow-removal work until the policy renews to avoid complications.
  C. Advise the client that the change in operations will be reported to the insurance company.

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  Explanation

  Snow removal is a different operation from construction and may create different liability and underwriting exposure. The broker should report the change in operations to the insurer rather than assuming short duration creates automatic coverage. Delaying the work or saying no action is needed could leave the client uninsured for a new operation.

• Question 123:

  Chan, a Broker, is preparing to do a review of homeowners quotes with his client.

  What are the MOST important details Chan should be discussing with his client?

  A. Limits on the building and contents, excluding outbuildings.
  B. Limitations, exclusions and conditions.
  C. Premium, policy discounts, and deductible options.
  D. Coverage for liability and voluntary medical payments.
  B. Limitations, exclusions and conditions.

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  Explanation

  When reviewing homeowners quotes, the broker must focus on what the policy does and does not cover. Limitations, exclusions, and conditions shape the client's actual protection and must be explained so the client can make an informed decision. Premiums, deductibles, limits, and specific liability features matter, but they do not replace explaining restrictions and conditions in the coverage.

• Question 124:

  Ability Insurance Inc. is non-renewing Arshad's policy. Arshad's son has a major conviction that does not fall within Ability Insurance acceptability criteria. Broker Luisa recommends Arshad to exclude his son from the policy so Ability Insurance can offer a renewal.

  Which endorsement is required to exclude Arshad's son from the policy?

  A. OPCF 28A.
  B. OPCF 28.
  C. OPCF 48.
  D. OPCF 8.
  A. OPCF 28A.

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  Explanation

  OPCF 28A is the excluded driver endorsement used to exclude a named person from coverage under an Ontario automobile policy. If the insurer will renew only when the son is excluded, the broker must use the correct endorsement and explain the consequences. OPCF 28 and other forms do not serve the same excluded-driver function.

• Question 125:

  What does a medical questionnaire for Travel insurance determine?

  A. The medical condition of the client to confirm if they can travel.
  B. The client's eligibility and rate category.
  C. The amount of coverage and deductible the company can offer the client.
  D. Mode of travel and length of stay for client.
  B. The client's eligibility and rate category.

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  Explanation

  A travel insurance medical questionnaire is used to determine eligibility and rating category based on the applicant's health information. It does not certify that the client can travel medically, set only the deductible and amount, or determine trip length and mode of travel. Accurate answers are important because eligibility and exclusions may depend on them.

• Question 126:

  Proper documentation of client files is critical for protecting a Broker and their brokerage from Errors & Omissions (E & O) Claims.

  In which situation would proper documentation NOT reduce the risk of liability for the Broker?

  A. The client disputes the accuracy of their business operations recorded in the policy documents.
  B. The client claims they were unaware of policy exclusions despite signing the application.
  C. The Broker fails to send the binding order within the required timeframe.
  D. The Broker advises the client on coverage options, but the client declines the recommendations.
  C. The Broker fails to send the binding order within the required timeframe.

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  Explanation

  Good documentation helps prove advice, instructions, and information received, but it does not cure a broker's failure to perform a required action such as sending a binding order on time. In the other situations, file notes and signed records can reduce dispute risk by showing what was discussed or disclosed. A missed operational deadline remains a liability exposure despite documentation.

• Question 127:

  Which statement is CORRECT regarding the application of a "Deductible Clause" in a property insurance policy?

  A. If the amount of the loss is less than the amount of the deductible, no indemnity is paid, but if the amount of the loss is greater than the deductible, the loss is paid in full.
  B. From the amount of the loss, the deductible is subtracted and the balance is paid in settlement of the loss.
  C. The amount of the deductible is subtracted from the sum insured. Losses up to this amount are covered in full.
  D. The amount of the deductible is added to the premium and all losses are covered in full.
  B. From the amount of the loss, the deductible is subtracted and the balance is paid in settlement of the loss.

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  Explanation

  A deductible is subtracted from the amount of the covered loss, and the balance is paid subject to policy limits and conditions. It does not disappear when the loss exceeds the deductible, nor is it subtracted from the sum insured. The deductible is the portion of the loss retained by the insured.

• Question 128:

  A personal auto client starts using the insured vehicle for food delivery several evenings per week.

  What should the broker do?

  A. Treat the change in use as material, ask underwriting questions, and review insurer eligibility and coverage options before advising.
  B. Leave the vehicle class unchanged because delivery use occurs after normal business hours.
  C. Tell the client that all sharing economy or delivery use is automatically covered under a pleasure-use rating.
  D. Wait until renewal because changes in vehicle use never affect coverage during the policy term.
  A. Treat the change in use as material, ask underwriting questions, and review insurer eligibility and coverage options before advising.

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  Explanation

  Food delivery changes the use of the automobile and can affect class, eligibility, rating, and coverage. The broker should treat it as material, ask underwriting questions, and review insurer rules before advising. Pleasure-use assumptions, waiting until renewal, or saying delivery use is always covered can leave the client exposed.

• Question 129:

  What is NOT the subject of a Statutory Condition?

  A. Misrepresentation.
  B. Protection of the property after loss.
  C. Provisions for termination of the policy.
  D. Basis for determining the amount of premium.
  D. Basis for determining the amount of premium.

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  Explanation

  Statutory Conditions address matters such as misrepresentation, protection of property after loss, and termination of the policy. They do not set the basis for determining the amount of premium. Premium calculation is an underwriting and rating matter, not a statutory condition topic in this list.

• Question 130:

  What is NOT an example of Equipment Breakdown for a commercial policy?

  A. A thermostat failure in a commercial freezer.
  B. An engine for a generator is suddenly deemed inoperable.
  C. Smoke Alarms working intermittently due to a known faulty wiring issue.
  D. Electrical damage to a conveyor system as a result of a power surge.
  C. Smoke Alarms working intermittently due to a known faulty wiring issue.

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  Explanation

  Equipment breakdown is intended for sudden and accidental breakdown of covered equipment. Intermittently working smoke alarms caused by known faulty wiring are better characterized as a known maintenance or defect issue rather than a sudden breakdown loss. Thermostat failure, generator engine breakdown, and power surge damage are closer to the type of equipment failure exposure being tested.