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

IIC RIBO-LEVEL-1 Online Questions & Answers

• Question 141:

  An insurer bulletin changes the eligibility rules for an overland water endorsement.

  What should an entry-level broker do to support continuous learning and accurate advice?

  A. Review the bulletin, update working knowledge and resources, and ask a more experienced broker or underwriter when the change is unclear.
  B. Ignore the bulletin until a client has a water loss.
  C. Continue using the old rule because clients may prefer it.
  D. Tell every client that the endorsement is unavailable without checking their risk.
  A. Review the bulletin, update working knowledge and resources, and ask a more experienced broker or underwriter when the change is unclear.

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  Explanation

  A broker should review insurer bulletins, update working knowledge, and ask for guidance when a change is unclear. Eligibility changes can affect client recommendations and coverage availability. Ignoring the bulletin, using obsolete rules, or telling every client the endorsement is unavailable would be inaccurate and not client-focused.

• Question 142:

  A client reports a kitchen fire and asks the broker to promise that the insurer will pay for every damaged item.

  What should the broker do?

  A. Gather the loss information, provide first notice to the insurer, explain the claim process, and avoid guaranteeing the outcome.
  B. Guarantee payment because fire is always covered under every policy.
  C. Tell the client to repair everything before notifying the insurer.
  D. Refuse to discuss the claim because brokers have no role after a loss occurs.
  A. Gather the loss information, provide first notice to the insurer, explain the claim process, and avoid guaranteeing the outcome.

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  Explanation

  A broker assists in the claims process by gathering loss information, reporting or helping report the claim, explaining the process, and managing expectations. The broker should not guarantee claim payment because the insurer must adjust the loss under the wording. Delaying notice or refusing to help would not meet the claims service competency.

• Question 143:

  Whose responsibility is it to insure the condominium's building and its common elements?

  A. The individual unit owner.
  B. The developer.
  C. The condominium corporation.
  D. The municipality that the condo is located in.
  C. The condominium corporation.

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  Explanation

  The condominium corporation insures the building and common elements on behalf of the condominium property as a whole. Individual unit owners insure their personal property, improvements, liability, and unit-specific exposures as required. The developer or municipality is not responsible for the ongoing building and common element insurance after the condominium is operating.

• Question 144:

  A Broker is given two days notice from an insurance company that they are getting off risk for a small commercial property account.

  Which regulation or act outlines regulations governing how insurance companies must handle notice's of expiry or variation?

  A. Registered Insurance Brokers (RIB) Act.
  B. Insurance Act.
  C. RIBO's By-laws.
  D. Compulsory Insurance Act.
  B. Insurance Act.

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  Explanation

  Rules governing insurer notice of expiry, cancellation, or variation are found in insurance legislation rather than the broker licensing statute. The RIB Act and RIBO by-laws govern broker registration and conduct. The Compulsory Insurance Act is not the general source for small commercial property notice requirements.

• Question 145:

  A new driver with several serious convictions cannot obtain Ontario automobile insurance in the regular market. The client still needs legally required coverage.

  Which market concept should the broker understand?

  A. Facility Association may provide a residual market mechanism for eligible risks that cannot obtain coverage in the regular market.
  B. Lloyd's syndicates automatically replace all Ontario automobile insurers for high-risk drivers.
  C. The client can drive uninsured until the convictions expire.
  D. A broker can create an informal binder without an insurer when no market is available.
  A. Facility Association may provide a residual market mechanism for eligible risks that cannot obtain coverage in the regular market.

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  Explanation

  Facility Association is the residual market mechanism for eligible automobile risks that cannot obtain coverage in the regular market. The broker should understand it when a high-risk driver still needs legally required coverage. Lloyd's, driving uninsured, or informal broker binders do not solve the legal automobile insurance requirement.

• Question 146:

  During an internal training session on cyber security, the company emphasizes the importance of recognizing and handling suspicious emails to protect client data and brokerage information.

  What is the FIRST step you should take when you receive an email from an unknown sender with an attachment?

  A. Forward the email to a colleague to verify its content.
  B. Delete the email immediately without reviewing it.
  C. Move the email to your junk folder without opening it.
  D. Report the email to your IT department without opening it.
  D. Report the email to your IT department without opening it.

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  Explanation

  A suspicious email from an unknown sender with an attachment should not be opened or forwarded casually. Reporting it to IT follows cybersecurity procedure and protects client and brokerage information. Deleting without reporting may lose useful incident information, and forwarding the message can spread the threat.

• Question 147:

  Which of the following statements is TRUE about the O.A.P.

  1 Owner's Policy optional coverage "OPCF 44R-Family Protection Coverage?

  A. It will protect the insured for injuries received as a pedestrian when the driver of a vehicle which causes the injuries does not carry sufficient insurance.
  B. It is automatically included under Section 4-Accident Benefits of the policy.
  C. It is not available to commercial vehicles because injuries received by passengers in such vehicles are covered under Worker's Compensation legislation.
  D. It pays for benefits to insured's passengers who are under-insured in the amount of any accident and sickness insurance they carry on themselves.
  A. It will protect the insured for injuries received as a pedestrian when the driver of a vehicle which causes the injuries does not carry sufficient insurance.

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  Explanation

  OPCF 44R Family Protection Coverage addresses injury claims where the at-fault motorist has no insurance or insufficient insurance, including situations involving the insured as a pedestrian. It is an optional endorsement, not automatically part of accident benefits. It does not simply pay passenger accident and sickness benefits or become unavailable only because a vehicle is commercial.

• Question 148:

  An underwriter is reviewing an application for a commercial property. They notice the building is over 50 years old and has original knob-and-tube wiring.

  Why is this a major concern for the underwriter?

  A. Knob-and-tube wiring is illegal in Ontario and must be reported to the authorities.
  B. This type of wiring is significantly more prone to overheating and causing fires, representing a high physical hazard.
  C. Original wiring makes the building more difficult to renovate, reducing its resale value.
  D. The insurer would be required to pay for the full upgrade of the wiring as part of any claim.
  B. This type of wiring is significantly more prone to overheating and causing fires, representing a high physical hazard.

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  Explanation

  Old knob-and-tube wiring is a physical condition that can increase the chance or severity of fire loss, so it is a high physical hazard for property underwriting. The issue is not resale value or a promise that the insurer will fund upgrades. The underwriter is concerned because the building condition affects fire risk and eligibility.

• Question 149:

  What is NOT a form of Business Interruption insurance?

  A. Gross Earnings Insurance.
  B. Profits Insurance.
  C. Extra Expense Insurance.
  D. Consequential Loss Insurance.
  D. Consequential Loss Insurance.

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  Explanation

  Gross earnings, profits, and extra expense are recognized approaches or forms within business interruption coverage. Consequential loss is a broader description of indirect loss and is not the named business interruption form in this list. The question asks for the item that is not a form of business interruption insurance.

• Question 150:

  Which of the following is an example of "Self-Insurance"?

  A. A person who chooses not to buy insurance and instead keeps a large emergency fund.
  B. A business that purchases a policy with a very high $50,000 deductible.
  C. A group of individuals who pool their money to cover each other's losses.
  D. A professional athlete who insures their hands for $10 million.
  A. A person who chooses not to buy insurance and instead keeps a large emergency fund.

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  Explanation

  Self-insurance is risk retention: the person or business chooses to bear losses from its own funds instead of transferring that risk to an insurer. A high deductible still involves an insurance policy, pooling money resembles insurance or risk sharing, and insuring an athlete's hands is risk transfer through insurance.