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

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.

Question 2

Which of the following statements is TRUE?

Accepted Answer

Stock companies are owned by shareholders.

Answer

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.

Question 3

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

Accepted Answer

Fire, Lightning, and Limited Explosion.

Answer

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.

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

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.

Question 5

What is the purpose of the Hotline?

Accepted Answer

To forward claims information to OHIP

Answer

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.

RIBO - Registered Insurance Broker of Ontario Practice Test

RIBO - Registered Insurance Broker of Ontario Practice Test

FREE RIBO Insurance Industry Regulations Questions and Answers