FREE RIBO Insurance Products and Coverage Questions and Answers

Question 1

What is the amount called that is refunded to the client if an insured cancels their policy?

Accepted Answer

Short rate

Answer

Pro-rata

Answer

Guaranteed refund

Answer

Change

Question 2

What covers employee infidelity?

Accepted Answer

3D policy

Answer

Employee security insurance

Answer

Inside/Outside robbery insurance

Answer

Extra expense insurance

Question 3

Statutory conditions apply to:

Accepted Answer

Fire Insurance

Answer

Burglary Insurance

Answer

Liability Insurance

Answer

Marine Insurance

Question 4

The Insurance Act states that the Removal of Property extension on a fire policy provides coverage for property temporarily removed from the insured premises to prevent loss, damage, destruction, or further loss from an insured peril for a maximum period of:

Accepted Answer

seven (7) days.

Answer

fourteen (14) days.

Answer

thirty (30) days.

Answer

ninety (90) days.

Question 5

The Insurance Act states that one of the following situations is not excluded under a fire policy:

Accepted Answer

Damage caused by a fire that spread from a neighbouring property to the insured property.

Answer

Damage occurring to property which was removed to prevent further damage nine days after its removal from the insured location.

Answer

Damage to the insured property due to war.

Answer

Damage due to the explosion of a frozen water pipe.

Question 6

Salvage is ________:

Accepted Answer

Property remaining after a loss which still has some value.

Answer

Property damaged or destroyed after the loss.

Answer

Property remaining after a loss that has no value.

Answer

A statutory condition that states the Insurer will pay the full value of all salvaged property after a loss.

Question 7

Indemnity ________:

Accepted Answer

ensures an insured neither gains nor loses from an insured loss.

Answer

is replacing a damaged item with a new one.

Answer

is paying cash for the loss.

Answer

is sharing the losses of a few among many.

Question 8

Insurance contracts require three additional elements to make an insurance contract enforceable at law. Which of the following is NOT one of these additional elements?

Accepted Answer

An unconditional agreement

Answer

Insurable interest

Answer

Utmost Good Faith

Answer

Indemnity

Question 9

Who would not be considered to have insurable interest?

Accepted Answer

A person who expects to inherit property after their father's death.

Answer

The owner of a home.

Answer

A mortgagee of the property.

Answer

The owner of a building that is totally rented to others.

Question 10

A basic fire policy will automatically cover all of the following except one. What is the exception?

Accepted Answer

The purchaser of a building after the building has been transferred from the original insured.

Answer

A trustee in a bankruptcy.

Answer

The heir to property after the death of the original insured.

Answer

The spouse of the named insured and who is named in the policy.