RIBO Claims Management and Handling 2

Question 1

Under the Ontario Insurance Act's Statutory Conditions, within how many days must an insured submit a Proof of Loss after a property loss?

Accepted Answer

60 days

Answer

The Ontario Insurance Act Statutory Conditions require an insured to deliver a Proof of Loss to the insurer within 60 days of a loss, unless the insurer grants an extension.

Question 2

What does the designation 'without prejudice' mean in claims correspondence?

Accepted Answer

Statements made cannot be used as evidence of liability or admission in legal proceedings

Answer

'Without prejudice' protects settlement negotiations by ensuring neither party's statements can be used against them as admissions in court.

Question 3

What is an 'ex gratia' payment in the context of insurance claims?

Accepted Answer

A voluntary goodwill payment by the insurer when there is no contractual obligation to pay

Answer

An ex gratia payment is made voluntarily by the insurer as a goodwill gesture even though the policy does not technically obligate them to pay the claim.

Question 4

What is 'salvage' in the context of property insurance claims?

Accepted Answer

The remaining value of damaged property that the insurer takes ownership of after paying a total loss claim

Answer

After paying a total loss claim, the insurer acquires salvage rights—ownership of the remaining damaged property—to partially recover their claim payment.

Question 5

What is the insurer's 'duty to defend' under a commercial liability insurance policy?

Accepted Answer

The obligation to provide and fund a legal defense for any claim that potentially falls within policy coverage

Answer

The duty to defend is broader than the duty to indemnify—the insurer must defend the insured against any claim that could potentially be covered, even if coverage is ultimately denied.

RIBO - Registered Insurance Broker of Ontario Practice Test

RIBO - Registered Insurance Broker of Ontario Practice Test

RIBO Claims Management and Handling 2