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

Explanation:
When an insured cancels their policy, they may be entitled to a refund of the premium they paid. The short rate is the amount refunded to the client, which is less than the pro-rata refund. The short rate takes into account the administrative costs and expenses incurred by the insurance company. It is calculated based on a predetermined formula and is often applied when the policy is canceled before its expiration date.

Question 2

What covers employee infidelity?

Accepted Answer

3D policy

Answer

Explanation:
A 3D policy covers employee infidelity. This type of policy provides coverage for losses caused by dishonest acts committed by employees, such as theft, fraud, or embezzlement. It is designed to protect the employer from financial losses resulting from the actions of their employees.

Question 3

Statutory conditions apply to:

Accepted Answer

Fire Insurance

Answer

Explanation:
Statutory conditions apply to Fire Insurance. This means that there are specific legal requirements and regulations that must be followed when providing coverage for Fire 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

Explanation:
The Removal of Property extension on a fire policy typically 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 seven (7) days. This coverage is designed to protect property during short-term relocation or storage situations.

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

Explanation:
The Insurance Act states that damage caused by a fire that spread from a neighboring property to the insured property is not excluded under a fire policy. This coverage ensures that damage resulting from external sources, such as neighboring fires, is covered under the policy, providing financial protection to the insured against such risks.

RIBO - Registered Insurance Broker of Ontario Practice Test

RIBO - Registered Insurance Broker of Ontario Practice Test

FREE RIBO Insurance Products and Coverage Questions and Answers