RIBO Claims Management and Handling

Question 1

When a client notifies a broker of a potential claim, what is the broker's primary responsibility?

Accepted Answer

Document the claim details and promptly notify the insurer on behalf of the client

Answer

Advise the client to contact the insurer directly without broker involvement

Answer

Wait to confirm the claim is valid before taking any action

Answer

Refer the client immediately to a public adjuster

Question 2

What is subrogation in the context of insurance claims?

Accepted Answer

The insurer's right to pursue a negligent third party to recover claim payments made to the insured

Answer

The insurer's right to cancel a policy after a major claim is paid

Answer

The insured's right to claim the same loss from multiple insurers simultaneously

Answer

The process of reducing a claim payment to account for depreciation

Question 3

Under the Ontario Insurance Act, what is a 'Proof of Loss'?

Accepted Answer

A statutory sworn statement the insured must submit detailing the circumstances and amount of a loss

Answer

A document proving the insured has paid all premiums on time

Answer

An insurer's written confirmation that a valid policy exists at the time of loss

Answer

A certificate issued by the adjuster confirming the claim settlement amount

Question 4

What is the primary role of an insurance adjuster in the claims process?

Accepted Answer

To investigate the loss, evaluate damages, and negotiate a fair settlement on behalf of the insurer

Answer

To sell additional coverages to the claimant following a loss

Answer

To determine whether a policy should be cancelled following a claim

Answer

To collect outstanding premiums from the policyholder before processing a claim

Question 5

What does the principle of 'indemnity' mean in insurance?

Accepted Answer

Restoring the insured to the same financial position they were in immediately before the loss

Answer

Paying the insured more than their actual loss to incentivize risk prevention

Answer

Providing the insured with a financial profit following a covered loss

Answer

Reimbursing the insured for anticipated future losses based on current values

Question 6

In property insurance claims, what is 'betterment'?

Accepted Answer

A deduction applied when repairs or replacements improve the property beyond its pre-loss condition

Answer

A premium discount applied to policies with no claims history

Answer

Additional coverage automatically provided for property improvements after a loss

Answer

The increased market value of a property after a claim has been fully settled

Question 7

What is the primary purpose of a deductible in an insurance policy?

Accepted Answer

To share risk between the insurer and insured and discourage small or frivolous claims

Answer

To penalize the insured financially for reporting any type of claim

Answer

To cover the adjuster's investigation and travel costs for each claim filed

Answer

To fund the insurer's general operating and administrative expenses