FREE RIBO Insurance Industry Regulations Questions and Answers
The Insurance Act states that a fire policy must include three periods which are:
Explanation:
The Insurance Act mandates that a fire policy must include coverage for three specific perils: fire, lightning, and limited explosion. These perils are commonly covered under standard fire insurance policies, ensuring that policyholders have essential protection against these risks. It's important for insurers to comply with these requirements to meet legal standards and provide adequate coverage to policyholders.
If an insured is unsatisfied with an offer to settle a claim, under the fire statutory conditions the insured may sue the insurer:
Explanation:
Under the fire statutory conditions, if an insured is unsatisfied with an offer to settle a claim, they may sue the insurer within one year after the damage occurs. This timeframe provides insured individuals with an opportunity to take legal action if they believe the insurer's offer does not adequately compensate them for the damages suffered.
Which of the following statements is TRUE?
Explanation:
The statement "Stock companies are owned by shareholders" is true. Stock companies, also known as corporations, are owned by shareholders who hold shares of the company's stock. Shareholders have ownership rights and can participate in the company's profits and decision-making through voting rights. This is a fundamental characteristic of stock companies and distinguishes them from other types of organizations.
Should the insurer exercise their option to rebuild a property after a loss, the work must begin:
Explanation:
According to the Fire Statutory Conditions, if the insurer chooses to rebuild a property after a loss, the work must begin within 45 days after the receipt of the proof of loss. This requirement allows the insurer a reasonable timeframe to assess the claim, make necessary arrangements, and initiate the rebuilding process, ensuring timely restoration of the property for the insured.
When an insurer claims bankruptcy and can not pay the claims of its policyholders, the Property and Casualty Insurance Compensation Corporation (PACICC) does so on the bankrupt insurer's behalf. What are the maximum amounts that can be claimed from PACICC in this situation?
Explanation:
The Property and Casualty Insurance Compensation Corporation (PACICC) provides coverage for policyholders in the event of insurer bankruptcy. The maximum amounts that can be claimed from PACICC are $250,000 for a single occurrence and up to 70% of unearned premiums, with a maximum of $700 per policy. This coverage helps protect policyholders from financial losses due to insurer insolvency.
Statutory conditions:
Explanation:
Statutory conditions refer to specific sections of the Insurance Act that are mandated to be printed on all fire and automobile insurance policies in Ontario. These conditions outline certain rights and responsibilities of both insurers and policyholders, ensuring consistent legal standards and protections across insurance policies within the province.
According to the Fire Statutory Conditions, after a fire loss, the insured must submit a proof of loss form:
Explanation:
According to the Fire Statutory Conditions, after a fire loss, the insured must submit a proof of loss form as soon as practicable. This requirement emphasizes the importance of promptly documenting the loss and initiating the claims process. While there is no specific deadline mentioned, insurers typically expect the proof of loss to be submitted as soon as reasonably possible after the occurrence of the loss.
What is the purpose of the Hotline?
Explanation:
The purpose of the Hotline is to forward claims information to OHIP. This suggests that the Hotline serves as a means of communication between individuals and OHIP, allowing them to submit claims and provide necessary information for processing. It implies that the Hotline is a channel for efficient and organized handling of claims, ensuring that the necessary information reaches OHIP for further action.
According to the Insurance Act, a Fire policy expires at?
Explanation:
According to the Insurance Act, a Fire policy typically expires at 12:01 am standard time at the address of the insured. This timing ensures clarity and consistency in policy expiration across different locations and time zones, providing a standardized approach to insurance contract terms.
A proof of loss:
Explanation:
A proof of loss is a form that an insured completes to describe what happened and the property that was lost. This form is used to notify the insurer of a claim and provide detailed information about the loss. By completing this form, the insured provides essential information to the insurer, allowing them to assess the claim and determine the appropriate course of action.
What is subrogation?
Explanation:
Subrogation is the legal process through which an insurance company seeks to recover the amount it has paid for a loss from a third party who is responsible for causing the loss. In other words, if an insurer pays a claim to their insured, they may then pursue the responsible party to recoup the amount paid. This allows the insurer to avoid bearing the entire financial burden of the loss and holds the responsible party accountable.