Free RIBO Insurance Fundamentals Test 2

Question 1

You accidentally strike the guardrail as you attempt to avoid hitting a squirrel.

Accepted Answer

Automobile

Answer

Striking a guardrail with your vehicle, even to avoid an animal, is an incident involving your automobile. Damage to your car or the guardrail would typically be covered under an automobile insurance policy, specifically the collision or property damage liability components, depending on the circumstances and who is at fault.

Question 2

The deductible is the part of the insurance coverage that the insured will pay.  It is usually set to determine the monthly premium amount.

Accepted Answer

TRUE

Answer

The deductible is the amount of money the insured must pay out-of-pocket before their insurance coverage begins to pay for a claim. Generally, a higher deductible means the insured takes on more initial risk, which results in a lower monthly premium. Conversely, a lower deductible leads to a higher premium because the insurer bears more of the initial claim cost.

Question 3

You hit and injure a pedestrian in a crosswalk.

Accepted Answer

Automobile

Answer

Hitting and injuring a pedestrian in a crosswalk involves your automobile and falls under the liability coverage of an automobile insurance policy. This coverage protects you financially if you are found legally responsible for bodily injury or property damage to others in an accident involving your vehicle.

Question 4

Automobile Insurance is an arrangement between an individual (consumer) and insurer (insurance company) to protect the individual against risk from automobile accidents.

Accepted Answer

TRUE

Answer

Automobile insurance is indeed a contract between an individual and an insurer designed to protect the individual from financial losses arising from automobile accidents. It provides coverage for damages to the insured's vehicle, injuries to the insured and passengers, and liability for damages or injuries caused to others.

Question 5

You need a cast after breaking an ankle while roller-blading.

Accepted Answer

Health Insurance

Answer

Breaking an ankle and needing a cast is a medical expense directly related to a bodily injury. Health insurance is designed to cover medical costs such as doctor visits, hospital stays, surgeries, and medical devices like casts, making it the appropriate coverage for this scenario.

RIBO - Registered Insurance Broker of Ontario Practice Test

RIBO - Registered Insurance Broker of Ontario Practice Test

Free RIBO Insurance Fundamentals Test 2