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Take our RIBO license practice exam quiz with the questions provided below in order to excel at being the most knowledgeable in your field. RIBO is a self-governing, self-supporting organization of insurance brokers who practice from Ontario, Canada. It stands for Registered Insurance Brokers of Ontario and this quiz is going to assist you in making sure that you stay on top! Don't forget to share this quiz with your colleagues!
Questions and AnswersExplanation
The correct answer is short rate. 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.
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Explanation
A fiduciary is a person or entity that is legally obligated to act in the best interest of another party. They must exercise a high level of care, loyalty, and trustworthiness when managing the other party's assets or finances. While banks, dry cleaners, and insurance companies may provide services to customers, an insurance broker specifically acts as a representative for clients in obtaining insurance policies. They have a fiduciary duty to their clients, ensuring that they provide unbiased advice and act in the client's best interest when recommending insurance products.
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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.
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The legal process by which an insurer who has paid a loss pursues rights of recovery against a responsible third party.
Correct Answer
D. The legal process by which an insurer who has paid a loss pursues rights of recovery against a responsible third party.
Explanation
Subrogation is the legal process through which an insurance company seeks to recover the amount it has paid for a loss from a third party who is responsible for causing the loss. In other words, if an insurer pays a claim to their insured, they may then pursue the responsible party to recoup the amount paid. This allows the insurer to avoid bearing the entire financial burden of the loss and holds the responsible party accountable.
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Explanation
The statement "Stock companies are owned by shareholders" is true. Stock companies, also known as corporations, are owned by shareholders who hold shares of the company's stock. Shareholders have ownership rights and can participate in the company's profits and decision-making through voting rights. This is a fundamental characteristic of stock companies and distinguishes them from other types of organizations.
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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.
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Explanation
The purpose of the Hotline is to forward claims information to OHIP. This suggests that the Hotline serves as a means of communication between individuals and OHIP, allowing them to submit claims and provide necessary information for processing. It implies that the Hotline is a channel for efficient and organized handling of claims, ensuring that the necessary information reaches OHIP for further action.
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Explanation
While an executor of an estate holds a position of trust and responsibility regarding the distribution of assets according to the deceased person's wishes, they are not typically considered fiduciaries in the legal sense. Fiduciaries are individuals entrusted with managing assets or obligations on behalf of others and are legally bound to act in the best interests of those they represent. Executors of estates may have fiduciary duties in certain contexts, but the role itself does not universally qualify as a fiduciary position.
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Explanation
Lloyds of London is not an insurance company. This statement is true because Lloyds of London is not an insurance company in the traditional sense. It is a market where multiple insurers come together to provide insurance coverage. Lloyds of London acts as a platform for insurance underwriters to offer specialized insurance policies and manage risks. It is known for insuring unique and high-value risks that may not be covered by traditional insurance companies. Therefore, it is correct to say that Lloyds of London's is not an insurance company.
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Correct Answer
C. Is a form an insured completes to describe what happened and the property that was lost
Explanation
A proof of loss is a form that an insured completes to describe what happened and the property that was lost. This form is used to notify the insurer of a claim and provide detailed information about the loss. By completing this form, the insured provides essential information to the insurer, allowing them to assess the claim and determine the appropriate course of action.
