RIBO Test Bank (IBAO)
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202 Terms
Which of the following parties must be identified on an insurance policy, as mandated by the Insurance Act?
The insurer and the insured
2 multiple choice options
In Ontario, automobile insurance is:
Regulated by the Compulsory Automobile Insurance Act
1 multiple choice option
In Ontario, which act contains the legal rules governing the operation of the insurance industry, as well as rules applying specifically to insurance contracts?
The Insurance Act
2 multiple choice options
According to the Insurance Act, when does a fire policy expire?
12:01 a.m. local time at the address of the named insured
2 multiple choice options
Michaela temporarily removes property from her insured premises to prevent loss, or further loss, from an insured peril. How long must the removal of the property extension on her fire policy provide coverage for?
Seven days
3 multiple choice options
An insurance company that sells insurance products directly to customers is:
A direct writer
2 multiple choice options
An intermediary is a person or organization who:
Acts as a mediator or link between two parties
2 multiple choice options
Which of the following best describes a Comprehensive Tenant Policy?
It is the same as a Homeowner Policy, but it does not cover buildings or outbuildings.
3 multiple choice options
What is covered under a Condominium Unit Owner Policy?
The unit owner's personal property (contents) and any unit improvements and betterments
3 multiple choice options
An all-risks policy covers:
any kind of loss, subject to exclusions.
3 multiple choice options
Which of the following best describes the fire and extended coverage Secondary and Seasonal Residence Forms?
The Secondary Residence Form covers more perils
3 multiple choice options
Which of the following losses are not covered under a Comprehensive Homeowner Policy?
Collapse of the roof due to snow load at the seasonal dwelling
3 multiple choice options
Under the Comprehensive Homeowner Policy, which of the following statements is correct?
None of the above
3 multiple choice options
The Kumar family has rented the same seasonal dwelling for 20 years, for 2 months each year. They bring all their clothes, bedding, and supplies (worth $4,000). Unfortunately, a fire destroyed the building in the first week and all was lost. They have a $50,000 Comprehensive Tenant Policy. How much would this policy pay above the $500 deductible?
$3,500
3 multiple choice options
Shaun plans to renovate his bungalow, which means he has to vacate his home for six months. His coverage for additional living expenses will:
not provide any coverage
3 multiple choice options
Jelena is selling her house and moving to a low-rise condominium. She asks you, her broker, what she should do with her current Homeowner Policy. What would you advise her to do?
The Homeowner Policy must be replaced by a Condominium Unit Owner Policy, which gives certain extra coverages she will need as a unit owner.
3 multiple choice options
Is loss or damage caused by an earthquake insurable?
Yes - it can be added to a property policy for an additional premium.
3 multiple choice options
To prove any tort, the following three elements must be present: Duty owned, duty breached, and:
damages suffered as a result of the defendant's direct action
3 multiple choice options
Under Section II: Liability Coverages, the insurer does not agree to:
Reimburse the insured for physiotherapy and other medical costs
3 multiple choice options
The general purpose of Section E: Personal Liability is to give the insured protection for:
Injuries caused to others when the insured is negligent and held legally liable
3 multiple choice options
Negligence is:
The failure to exercise the care that a reasonable person would take in a similar set of circumstances.
3 multiple choice options
Negligence cannot be present if the person involved did not know that their conduct or action involved:
an unreasonable risk of harm
3 multiple choice options
Which of the following statements is correct?
a) liability policies protect the insured by paying damages for which they are legally liable
3 multiple choice options
Hyun owns a moped, a dirt bike, a motorized wheelchair, and a snowmobile. She asks which one is covered under Section II: Liability Coverages of the Comprehensive Homeowner Policy. What is your response?
the motorized wheelchair
3 multiple choice options
Which of the following is not an example of a condition for liability claims?
Claims arising from the transmission of a communicable disease are covered.
3 multiple choice options
Which statement about liability insurance is not true?
Special damages are only awarded for small dollar amounts, such as out-of-pocket expenses.
3 multiple choice options
Which of the following documents must be approved by the provincial government?
All of the above
3 multiple choice options
Fill in the blank: When completing the OAF 1, applicants must disclose all accidents and claims within the ______ years immediately preceding the application.
Six
3 multiple choice options
Neema wants to reduce the limit of liability in her OAP 1. What is the minimum amount she must carry under Ontario law?
$200,000 inclusive
3 multiple choice options
The owner's policy or insurance coverage on a described automobile is their:
Primary coverage
3 multiple choice options
Is a snowmobile considered an automobile for insurance purposes in Ontario?
Yes.
3 multiple choice options
The correct way to insure a snowmobile is:
Through an OAF 1 to cover all the exposures to be insured.
3 multiple choice options
Tim needs insurance on a car he leased from an automobile dealer. Which of the following policy forms does he need?
Owner's Form (OAF 1), suitably endorsed.
3 multiple choice options
Newly acquired automobiles are automatically covered under the OAP 1, provided the insurer is notified.
Within 14 days
3 multiple choice options
Winnie belongs to a carpool and uses her automobile to transport the other three members to work every fourth week. Noel, one of he other members, drives each of the other three weeks. As Winnie's insurance broker, what would you recommend to ensure she is covered against claims from passengers for injuries?
The OAP 1 automatically covers the situation.
3 multiple choice options
Brokers should always inform their clients about what optional benefits are available under the OAP 1. Which of the following is not an available optional benefit?
Excess economic loss endorsement.
3 multiple choice options
Andrei owns a van (which is used for pleasure purposes) and has just been laid off from his job. He tells you that, until he is rehired, he will use the van to deliver flowers for the local florist. What steps should you take?
Advise Andrei to re-classify the van as a commercial role.
3 multiple choice options
Under OAP 1, Section 4: Accident Benefits Coverage, the basic income replacement benefit payable is $400 per week. However, the actual amount is based on:
70% of gross income
3 multiple choice options
In Ontario, a threshold is:
The set of conditions under which an injured person can sue another motorist to recover damages.
3 multiple choice options
Which of the following statements is false?
Automobile lawsuits in Ontario are not permitted for catastrophic impairment.
3 multiple choice options
If an insured has made, or knows of, a material misrepresentation, then the insurer is not required to pay:
Income replacement benefits.
3 multiple choice options
OAP 1, Section 3: Liability Coverage would not cover which of the following?
Someone who has taken the insured automobile without consent.
3 multiple choice options
After a trial, how much would an injured insured recover from the responsible party for loss of income as a result of an automobile accident?
100% of gross income.
3 multiple choice options
When a third party has been injured, which of the following could jeopardize the insured's automobile coverage?
Trying to settle amicably with third party
3 multiple choice options
Which is the following statements is true?
Collateral benefits are any sources of entitlement outside of the automobile insurance policy.
3 multiple choice options
Elsie is insured. She drove Joseph's automobile as a temporary substitute and was responsible for an accident. The award to the innocent third party is $800,000. Elsie's policy carries a limit of $1,000,000, while Joseph's policy only carries $500,000. Elsie's insurer would pay:
$300,000
3 multiple choice options
Ahmad has automobile insurance. He is struck by an automobile while riding his bicycle and receives minor injuries. Ahmad's medicals payment will:
Be paid by his OAP 1, Section 4: Accident Benefits Coverage
3 multiple choice options
Natasha is driving an insured automobile without the owner's consent. If she is involved in an accident, the only coverage available to her is certain coverage under:
Section 4: Accident Benefits Coverage
3 multiple choice options
The insurer is required to pay the money for which it is liable under the OAP 1 within 60 days after the:
Proof of loss has been received by the insurer
3 multiple choice options
Nick leaves a bar at night, gets into his automobile in an intoxicated state, and causes an accident on the way home. Which of the following would not be covered?
Collision damage to his automobile.
3 multiple choice options
Which of the following is not one of the sections in a commercial insurance package policy?
Personal liability
3 multiple choice options
Karen owns a commercial office building. All units are rented by business professionals. Which of the following property types is considered part of Karen's building for insurance purposes?
Ornamental trees growing in the lobby of the building
3 multiple choice options
Which of following property types is defined as "stock" under a retail store's commercial insurance package policy?
All of the above
3 multiple choice options
Which of the following forms is the most commonly used in today's commercial package policies?
Broad Form
3 multiple choice options
Yusuf operates a convenience store in a building he owns. Thieves broke the window and caused a great deal of damage inside. Repairs are expected to take three weeks. The claims adjusted advised Yusuf to move hiss stock and equipment to a storage facility to protect it from further damage. Which commercial property extension pays for these costs?
Removal.
3 multiple choice options
Under a commercial property Broad Form, insured property is covered against:
All perils
3 multiple choice options
The commercial property Broad Form wording excludes loss or damage for certain types of property. Which of the following types of property is not excluded under the Broad Form?
Watercraft held for sale (and therefore considered to be stock)
3 multiple choice options
The commercial property Broad Form excludes several perils or causes of loss. Which of the following excluded perils or losses may be added to a policy for an additional premium?
Earthquake insurance.
3 multiple choice options
Which of the following causes of loss are excluded from a commercial property Broad Form?
All of the above
3 multiple choice options
Moe's business policy will indemnify him for the costs to repair or replace lost or damaged business property without deduction for depreciation. What is the basis of settlement called?
Replacement cost
3 multiple choice options
Emergency health services are best defined as:
Given in connection with an acute, unexpected condition, illness, disease, or injury requiring immediate treatment.
3 multiple choice options
Under OAP 1, Section 2: What Automobiles Are Covered? A newly acquired automobile is automatically covered for a period of 14 days. This automatic coverage is limited to:
Those coverages which applied to the vehicle being replaced or, if it is an additional automobile, those coverages which apply to all of the insured's vehicles.
3 multiple choice options
Which of the following statements is false?
Automobile lawsuits in Ontario are not permitted for catastrophic impairment.
3 multiple choice options
The town or city from where the applicant leaves for their vacation is known as:
The point of departure
3 multiple choice options
Which of the following is a non-medical risk faced by travellers?
Medical emergency of travel companion resulting in early or late return from a trip.
3 multiple choice options
Which of the following statements accurately describes travel health insurance (THI)?
THI covers unexpected medical and related costs due to a medical emergency occurring while travelling outside of Canada.
3 multiple choice options
Under the Canada Health Act, OHIP is not obligated to pay for:
Emergency medical care when an Ontario resident travels outside of Canada.
3 multiple choice options
Unless an exception has been granted, Ontario residents carrying an OHIP card are not insured for emergency health services if they:
Live or vacation outside Ontario for more than 212 days.
3 multiple choice options
OHIP coverage is cancelled if the Ontario resident is:
Out of Ontario for more than 212 days.
3 multiple choice options
As of January 1, 2020, OHIP will not pay for emergency health services for travellers while outside of Canada. There are two exceptions to this rule that OHIP may pay for, if approved. Which are they?
Kidney dialysis for travellers and pre-approved doctor-recommended health care.
3 multiple choice options
George is an Ontario resident requiring kidney dialysis three times weekly. Otherwise, his general health condition is good and has been stable for two years. He travels to Alberta to visit his sister, but experiences a serious heart attach while in Alberta and must be flown home via a private medical airplane and accompanied by a doctor. Which of the following will pay for the cost of this flight?
A THI policy, if he purchased one before leaving home.
3 multiple choice options
Which of the following criteria is not needed to meet the Ontario residency requirement to maintain OHIP coverage?
The resident must be born in Ontario.
3 multiple choice options
A member must at all times be able to meet all of the member's trust obligations. Which one (1) of the following is not considered trust funds?
A member's fixed assets.
3 multiple choice options
Regulation 991 section 12 outlines the conditions for charging a fee for service. Which one of the following is correct?
The amount of the fee, the proportion of the premium retained by the broker and the total renumeration for the transaction must be disclosed in advance.
3 multiple choice options
The formula for determining Actual Cash Value is ______________
ACV = Replacement Cost - Depreciation
3 multiple choice options
Which of the following people are not covered under the Homeowners form?
Boarders or renters.
3 multiple choice options
When a loss occurs to an insured property and involves different types of property, how is the deductible applied to the claim?
Only one deductible will be applied to the total amount of the claim.
3 multiple choice options
When joint tortfeasors are responsible for damages but the liability is being disputed, each of the tortfeasors is held liable for an amount of __________. This encourages liable joint tortfeasors to settle the dispute themselves or split the damages evenly: it also encourages shorter settlement periods.
The total loss or damages
3 multiple choice options
A _______________ is one who comes onto the premises of the occupier or owner of a property for his or her own purposes, but with the occupier's consent, such as a postal worker, social guest, or meter reader.
Visitor or invitee
3 multiple choice options
Your 10 year old daughter intentionally throws rocks through 5 of your neighbours' windows, causing $2,000 in damage. You are later sued for damages. This would be covered under:
Legal liability - personal liability of your Homeowner's policy.
3 multiple choice options
Which of the following supplementary payments will the insurer not pay under section II, liability coverage?
Legal fees when the insured must pursue an at fault party for the damages after an accident on their premises.
3 multiple choice options
All of the following are exclusions under your Homeowner's Liability section except:
The ownership, use or operation of a motorized vehicle, trailer, or watercraft.
3 multiple choice options
An umbrella policy:
Provides excess insurance over another policy.
3 multiple choice options
OAP 1, Section 5: Uninsured Automobile coverage:
Can cover accidental damage to the insured's automobile, provided the uninsured owner or driver of the other automobile is identified.
3 multiple choice options
Leila parks their truck at a shopping mall. When she returns, she finds it has been damaged by another vehicle. She has an OAP 1 Owner's Form with Section 3: Liability Coverage, Section 4: Accident Benefits Coverage, Section 7: Loss or Damage Coverages (Optional) Coverage B: Comprehensive, and OPCF 44: Family Protection Endorsement. What section would cover the damage?
There would be no coverage.
3 multiple choice options
In the following statement about Section 6 - Direct Compensation - Property Damage coverage is incorrect?
The accident may occur anywhere in Canada and at least one. of the other automobiles involved is insured under a motor vehicle liability policy.
3 multiple choice options
Rising water is covered under:
All Perils, Comprehensive and Specified perils.
3 multiple choice options
Terence's automobile is broken into and some articles were taken. His specified perils policy will cover:
The bumper jack belonging to the automobile.
3 multiple choice options
Steve drove his automobile into his own garage door. What would be included under the own damage coverage of his OAP 1?
The auto.
3 multiple choice options
Which of the following is covered under Section 7: Loss or Damage Coverages, Coverage D: All Perils of the OAP 1?
Vandalism damage to the automobile.
3 multiple choice options
While ice fishing on Lake Simcoe, Harpreet's automobile went through the ice. She has OAP 1 with Section 3: Liability Coverage, Section 4: Accident Benefits Coverage, Section 5: Uninsured Automobile Coverage, Section 6: Direct Compensation - Property Damage Coverage and Section 7, Coverage B: Comprehensive. This means her insurer:
Would pay the claim less the deductible.
3 multiple choice options
Insurance under section 7 of OAP 1 Owner's Form, Loss or Damage Coverages, is usually subject to a deductible. It does not apply to loss or damage caused by:
Lightning
3 multiple choice options
Which of the following statements is false regarding business income insurance?
It replaces income that's lost when the insured or a key employee suffers a serious illness and is unable to work for an extended period of time.
3 multiple choice options
Allan insured his building for the appraised value of $800,000 on a replacement cost basis. The coinsurance clause is 90%. How much insurance should Allan carry on his building to meet the coinsurance clause?
$720,000
3 multiple choice options
Sanjay insures his office contents for $100,000. The co-insurance clause is 90%. Following a large fire, Sanjay's total loss was $125,000. How much will Sanjay receive from his insurance company (disregard any deductible)?
$100,000
3 multiple choice options
This type of coverage protects the business owner or business organization from liability connected to the business premises, current or completed business operations and products that have been sold or provided to the party who alleges injury or damage. This coverage is known as:
Commercial General Liability
3 multiple choice options
A Commercial General Liability policy that pays for losses that occur during the policy period, regardless of when the losses are reported is known as:
An occurrence-based policy.
3 multiple choice options
Despite her excellent health, Mary-Ann had a mild heart attach while on a driving holiday from her Ontario residence to Newfoundland. Which statement is correct?
OHIP will cover Mary-Ann's emergency and in hospital health services.
3 multiple choice options
Mary-Ann drove to Newfoundland to visit family She purchased Travel Health Insurance before leaving. Mary-Ann fell and fractured her leg in two places. She was unable to drive back to her Ontario home. Which statement is correct?
OHIP will not pay to fly Mary-Ann home or to have someone drive her car home.
3 multiple choice options
Under the Ontario Health Insurance Plan (OHIP), Ontario residents with a valid health card who meet the Ontario residency requirement to maintain their OHIP coverage are insured for emergency health services when:
Travelling within Ontario or another Canadian province or territory.
3 multiple choice options