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

IIC RIBO-LEVEL-1 Online Questions & Answers

• Question 41:

  Which statement correctly identifies the RIBO annual Continuing Education (CE.

  hours requirement and the mandatory course categories a Level 1 Broker MUST complete?

  A. Brokers must complete 6 hours of CE annually, including 1 hour of Ethics and 1 hour of Management.
  B. Brokers must complete 8 hours of CE annually, including 2 hours of Ethics and 1 hour of Management.
  C. Brokers must complete 6 hours of CE annually, including 1 hour of Ethics and 1 hour of Technical training.
  D. Brokers must complete 8 hours of CE annually, including 1 hour of Ethics and 3 hours of Technical.
  D. Brokers must complete 8 hours of CE annually, including 1 hour of Ethics and 3 hours of Technical.

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  Explanation

  A Level 1 broker must complete 8 hours of CE per term, including at least 1 ethics hour and 3 technical hours. The remaining hours can be completed in permitted categories. Six-hour answers are below the current requirement, and management-hour requirements apply to management roles rather than ordinary Level 1 licensees.

• Question 42:

  A Broker receives scanned client application forms and needs to save them for future reference while working through several urgent quote requests.

  A. Store the documents on an unencrypted USB drive kept in the Broker's locked desk drawer to access when needed.
  B. Print the documents, delete the email and place the documents in a locked filing cabinet to access when needed.
  C. Rename the files using an anonymous ID and store them in a shared network folder with password restrictions.
  D. Save the documents to the brokerage's approved encrypted cloud storage using the required file naming convention and access controls.
  D. Save the documents to the brokerage's approved encrypted cloud storage using the required file naming convention and access controls.

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  Explanation

  Client application forms contain sensitive personal information and should be stored in approved encrypted systems with naming and access controls. Unencrypted USB storage, printing as a workaround, or a merely anonymized shared folder are weaker controls and can create privacy and retrieval problems. Secure brokerage storage supports both confidentiality and record keeping.

• Question 43:

  Which is a non medical coverage offered as part of Travel health insurance plan?

  A. Prescription drug coverage for preexisting conditions.
  B. Taxi fare to airport to return home.
  C. Family transportation if the traveler is hospitalized.
  D. Expenses incurred for an ultrasound by the traveler.
  C. Family transportation if the traveler is hospitalized.

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  Explanation

  Family transportation when a traveler is hospitalized is a non-medical benefit commonly associated with travel health plans, because it assists with travel and family logistics rather than paying direct medical treatment. Prescription drugs, ultrasound expenses, and deductible or treatment amounts are medical-cost categories. Taxi fare to the airport is not the standard non-medical coverage being tested here.

• Question 44:

  Which class of insurance is designed to indemnify a business for loss of income due to fire damage to building, stock and equipment?

  A. Accident and Sickness insurance.
  B. Business Interruption insurance.
  C. Property insurance.
  D. Liability insurance.
  B. Business Interruption insurance.

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  Explanation

  Business interruption insurance is designed to indemnify a business for loss of income caused by insured damage to property such as buildings, stock, or equipment. Property insurance pays for physical damage, while business interruption addresses the income loss flowing from that damage. Accident and sickness and liability policies address different exposures.

• Question 45:

  Which situation can cause an Errors & Omissions (E & O.

  claim for a broker?

  A. Premium increase of policy at renewal.
  B. Change of address of the broker office not notified.
  C. Did not inform regulator hiring of a new employee at the brokerage.
  D. Effects of exclusions and restrictions not explained.
  D. Effects of exclusions and restrictions not explained.

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  Explanation

  Failing to explain exclusions and restrictions can lead to an errors and omissions claim because the client may allege they were not properly advised about a coverage limitation. Premium increases and internal office notices are not the same type of client coverage-advice failure. The broker must document and explain meaningful policy restrictions.

• Question 46:

  While a dentist is working on a patient, there is a power outage resulting in damages to the dental chair and x-ray machine.

  Under which coverage of the commercial policy can the business claim the damages?

  A. General Liability.
  B. Professional Liability.
  C. Stock Coverage.
  D. Equipment Coverage.
  D. Equipment Coverage.

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  Explanation

  Damage to specialized equipment such as a dental chair and x-ray machine from a power outage is an equipment coverage or equipment breakdown issue. General liability and professional liability address legal liability to others, and stock coverage applies to inventory. The loss is to business equipment rather than to third-party injury or professional error.

• Question 47:

  What is NOT a good procedure for Cyber Management?

  A. Receiving updated banking information from a client through email.
  B. Making a credit card payment through an insurer's website.
  C. Receiving credit card details from a client through email.
  D. Scanning a clients banking information to the Broker Management System to a clients file.
  C. Receiving credit card details from a client through email.

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  Explanation

  Receiving credit card details by email is not a good cyber management procedure because email may be insecure and creates unnecessary storage and PCI compliance risk. Using insurer payment portals is safer when properly handled.

  Banking updates and scanned banking information also require controls, but the credit card by email item is the clearest poor practice in this set.

• Question 48:

  Under the O.A.P.

  1, what is the primary difference between a "Temporary Substitute Automobile" and a vehicle covered under "OPCF 27"?

  A. A Temporary Substitute is used when the insured's own car is in the shop, whereas OPCF 27 is for when the insured is renting a car for pleasure/leisure.
  B. A Temporary Substitute is a newly purchased car, while OPCF 27 is for a car borrowed from a neighbor.
  C. Temporary Substitute coverage is mandatory, while OPCF 27 is only for commercial policies.
  D. There is no difference; they both provide the same coverage in all situations.
  A. A Temporary Substitute is used when the insured's own car is in the shop, whereas OPCF 27 is for when the insured is renting a car for pleasure/leisure.

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  Explanation

  A temporary substitute automobile replaces the insured vehicle while it is withdrawn from use, such as during repair. OPCF 27 addresses liability for damage to non-owned automobiles, often relevant when renting or borrowing while the insured vehicle remains available. The two concepts are not identical, and OPCF 27 is not a commercial-only form.

• Question 49:

  How would a broker apply the concept of risk analysis in commercial insurance?

  A. Through evaluating the physical and operational factors impacting the business.
  B. By excluding certain risks from the policy coverage.
  C. Setting out maximum payout limits in a policy term using the aggregate limit option.
  D. By applying higher deductibles for higher risks such as water damage.
  A. Through evaluating the physical and operational factors impacting the business.

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  Explanation

  Risk analysis in commercial insurance starts by evaluating the business's physical and operational characteristics, such as operations, premises, equipment, processes, and exposures. Exclusions, limits, and deductibles are policy responses after risk is understood. They do not describe the initial analytical process of identifying and classifying the commercial risk.

• Question 50:

  Under the Uninsured Automobile Coverage, who is covered for bodily injury or death?

  A. Insured's spouse walking on the sidewalk who gets hit by an unidentified vehicle.
  B. A pedestrian on the sidewalk who gets hit by an identified vehicle.
  C. Director of a corporation who is injured driving an undescribed vehicle.
  D. A dependent of the insured who is a passenger of a vehicle that is hit by an unidentified automobile and has their own insurance.
  A. Insured's spouse walking on the sidewalk who gets hit by an unidentified vehicle.

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  Explanation

  Uninsured Automobile coverage can protect an insured or certain family members for bodily injury or death caused by an unidentified or uninsured automobile, depending on the wording. The spouse walking on a sidewalk and struck by an unidentified vehicle fits that coverage concept. The other scenarios either involve the wrong insured status or do not fit the coverage trigger as clearly.