FREE RIBO Insurance Industry Regulations Questions and Answers

Question 1

What is subrogation?

Accepted Answer

The legal process by which an insurer who has paid a loss pursues rights of recovery against a responsible third party.

Answer

Property saved from a loss.

Answer

The sharing of loss between two or more insurance companies covering the same risk.

Answer

Not considered to be a principle that reinforces indemnity.

Question 2

Which of the following statements is TRUE?

Accepted Answer

Stock companies are owned by shareholders.

Answer

Lyoyd's of London is an insurance market.

Answer

Factory Mutuals will only insure factories.

Answer

Assessment or Premium Note Mutuals are the purest form of crown corporations.

Question 3

The Insurance Act states that a fire policy must include three periods which are:

Accepted Answer

Fire, Lightning, and Limited Explosion.

Answer

Fire, Theft, and Vandalism.

Answer

Fire, Explosion, and Smoke damage.

Answer

Fire, Lightning, and Smoke damage.

Question 4

A proof of loss:

Accepted Answer

Is a form an insured completes to describe what happened and the property that was lost

Answer

Notifies an insurer of a claim.

Answer

Is a form an insurer completes when there has been a loss

Answer

Is a form that needs to be signed by a notary for a claim to be paid

Question 5

What is the purpose of the Hotline?

Accepted Answer

To forward claims information to OHIP

Answer

To arrest and stabilize the situation that caused the emergency.

Answer

To attempt to deny claims.

Answer

To direct clients to the closest medical facility.

Question 6

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?

Accepted Answer

$250, 000 for a single occurrence and up to 70% of unearned premiums, subject to a maximum of $700 per policy.

Answer

$250, 000 for a single occurrence and up to 50% of unearned premiums, subject to a maximum of $500 per policy.

Answer

$200, 000 for a single occurrence and up to 70% of unearned premiums, subject to a maximum of $700 per policy.

Answer

$200, 000 for a single occurrence and up to 50% of unearned premiums, subject to a maximum of $500 per policy.

Question 7

According to the Insurance Act, a Fire policy expires at?

Accepted Answer

12:01 am standard time at the address of the insured.

Answer

12:01 pm local time at the address of the insured.

Answer

12:01 am standard time at the mailing address of the insurer.

Answer

12:01 pm local time at the address of the insured.

Question 8

Statutory conditions:

Accepted Answer

are sections of the Insurance Act that must be printed on all fire and automobile insurance policies.

Answer

are rules created by the collective body of insurers in the province of Ontario who have agreed to include the wording in their own policies.

Answer

are a listing of coverage exclusions in plain English so policyholders can determine what their coverage does not protect them against.

Answer

are the sections of law which state that applications for insurance must be statutory declarations of the material facts pertaining to a particular risk.

Question 9

According to the Fire Statutory Conditions, after a fire loss, the insured must submit a proof of loss form:

Accepted Answer

as soon as practicable.

Answer

within 30 days of the loss.

Answer

within 60 days of the loss.

Answer

within 90 days of the loss.

Question 10

Should the insurer exercise their option to rebuild a property after a loss, the work must begin:

Accepted Answer

45 days after the receipt of the proof of loss.

Answer

15 days after the receipt of the proof of loss.

Answer

30 days after the receipt of the proof of loss.

Answer

60 days after the receipt of the proof of loss.