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

The broker must document the claim and promptly notify the insurer to protect the client's interests and ensure timely processing under the policy.

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

Subrogation transfers the insured's right of recovery against a negligent third party to the insurer after the insurer has paid the claim.

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 Proof of Loss is a sworn statement required by the Ontario Insurance Act's Statutory Conditions that the insured must submit within 60 days of the loss, detailing the facts and amount claimed.

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

An adjuster's role is to investigate the facts, assess the value of the loss, and negotiate a settlement that is fair and consistent with the policy terms.

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

The principle of indemnity ensures the insured is neither better nor worse off financially after a loss—they are simply restored to their pre-loss position.

RIBO - Registered Insurance Broker of Ontario Practice Test

RIBO - Registered Insurance Broker of Ontario Practice Test

RIBO Claims Management and Handling