RIBO Level 1 Entry-Level Broker Exam
Last Update May 16, 2026
Total Questions : 214
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Many automobile insurers have introduced User-Based Insurance (UBI) programs (e.g., Telematics) to help determine rating and insurance premiums. Which MOST accurately describes elements that a UBI program tracks?
An accounting firm makes an error in tax filing for a client, and the client is charged 3 times the tax amount from CRA. Which part of the accounting firm insurance policy will pay for damages, if the client takes legal action against the accounting firm?
Your client calls to confirm they are renovating their home, this will include structural work. As the broker, what should you do next?
Berwyn, a Broker, has a client who plans to demolish their cottage and replace it with a new cottage. Berwyn has a lot of experience adding renovation riders to policies, but has never underwritten one of this scope. What should Berwyn do?
The RIBO Code of Conduct is outlined in Ontario Regulation 991, Section 14. Which provision is NOT outlined in the Code of Conduct?
Iqbal was involved in an automobile accident and was charged with the impaired operation of a motor vehicle. As a result, the insurance company is declining to repair Iqbal's vehicle under his collision coverage. Iqbal is adamant that he was not impaired at the time of the accident. What should the Broker do?
Under a standard Mortgage Clause, what happens if the insured intentionally sets fire to their home?
A Broker is reviewing coverage options for a new client. Company X offers a higher commission rate but the coverage has more exclusions. Company Y offers a lower commission but provides the comprehensive coverage the client needs. What is the Broker's ethical obligation?
A bank advises a Broker that their client’s mortgage has not been paid for several months. What coverage is available to the Mortgagee on the client’s Comprehensive Homeowner’s Policy?
An insurance policy with an annual premium of $1,200 is cancelled by the insured exactly 6 months into the term. The insurer’s "Short Rate Table" indicates that for a 6-month cancellation, the insurer is entitled to keep 60% of the annual premium as an administrative and earned cost. How much of a refund will the insured receive?
Which of the following is NOT a valid reason for using a “Telephone Hot-line” to report claims?
A homeowner decides to rent out their property as an Airbnb but does not inform their insurer. What could be the consequences of this material change?
Nancy called Hula Brokers to set up a new policy. She told them she is picking up her vehicle at 9:00 pm on September 1st, 2025. When does Nancy's policy expire?
Misrepresentation discovered by an insurer may result in the policy being voided. What circumstance must the insurer show occurred to legally void the policy?
A broker discovers the client does not have sewer back up coverage, and that the location now qualifies for it. What should the broker do next?
There is a leakage of gas in a nearby factory and the city announces the residents to leave town. Which optional additional coverage of the homeowners' policy covers the expenses to stay in another town?
Which of the following actions complies with RIBO requirements on confidentiality and referral fees?
An insured is involved in a serious multi-vehicle accident in Ontario. They are 100% at fault for the collision, which resulted in significant injuries to a passenger in another vehicle. The injured party has now filed a lawsuit against your insured. Which part of the O.A.P. 1 will respond to defend the insured and pay the judgment?
A building worth $120,000 is insured for $60,000 under a fire policy with an 80% co-insurance clause. Fire damages the building to the extent of $24,000. How much does the insurer pay?
As a licensed broker, you learn of significant regulatory changes impacting flood insurance coverage in your area. What steps should you take to ensure you are informed and prepared to advise your clients on these changes?
What are three elements commonly found in a Commercial General Liability policy?
According to the Registered Insurance Brokers (RIB) Act, how long MUST Brokers maintain records of their transactions?
A member has been found guilty of misconduct by determination of the discipline committee. Which is NOT a likely penalty?
A client phones to tell you he has bought a high-end stereo system costing $5,000.00 which has just been installed in his car. What should you tell him?
The Regulations under the Registered Insurance Brokers (RIB. Act require an insurance broker to provide evidence that insurance has been placed on behalf of a client. How must this be done and within what time period?
Your insured's young son has just purchased an automobile and wants you to insure it in his father's name and show himself as an occasional driver. Which of the following steps should you take?
Adam’s primary job is driving for Uber and Lyft. As a self employed contractor what coverage would provide him with the best liability protection while driving?
During an audit of your brokerage, it is discovered that numerous client files have not been updated with recent address changes. As a broker, you are aware of the role of the Financial Services Regulatory Authority of Ontario (FSRA. in ensuring compliance with insurance laws, including maintaining accurate client records. Which steps should you NOT take to rectify this issue?
Sally and Tammy rent a vehicle for a trip to New York. Sally is listed as a driver on a private passenger vehicle policy in Ontario and has the Ontario Policy Change Form (OPCF) 27 coverage on her policy, but Tammy made the reservation and Sally is listed as the driver. Tammy is not listed on anyone’s policy. Who will be covered to drive the rental vehicle?
Your insured has Comprehensive coverage on O.A.P. 1 Owner's Policy and informs you that they will be taking the car by ferry from Yarmouth, Nova Scotia to Bar Harbour, Maine. The insured asks if the policy would cover the loss of the automobile if the ferry sank in a storm. What do you tell them?
A Broker auditing client files finds several policy applications with missing or inconsistent contact and vehicle information and must ensure records meet RIBO and Errors & Omissions (E & O. expectations.
Nearly every insurance policy has Policy Conditions which are common to all policies issued in a particular class. Some policies also contain Statutory Conditions. Which of the following class of insurance policies contain Statutory Conditions?
After the July 1, 2026 auto reforms, which individuals will NOT have access to optional accident benefits under someone else’s auto policy?
An insured's property has been damaged by fire. According to the Statutory Conditions, the insured must provide a "Proof of Loss" to the insurer. What is the standard timeframe for the insurer to pay the claim once a complete Proof of Loss has been received (assuming no appraisal is required)?
Sonia, a Broker, advises all their clients to purchase $2 million in personal liability insurance when they provide quotes. When checking their upcoming renewals, they notice several policies with only $1 million in personal liability coverage. They consider increasing these limits to $2 million automatically on renewal as the premium cost is only an additional $20, and asking the client if they are in agreement after. What legal principle would Sonia be in breach of?
Taylor’s automobile policy has not been renewed by their insurer as one of the listed drivers has four or more convictions on their driving record. Taylor’s renewal date is 60 days away. What is the MOST appropriate way for the Broker to assist Taylor?
Your insured is involved in an accident and the insured’s automobile is heavily damaged. Repairs are estimated at $7,500. The insured calls to advise you that the insurer does not intend to have the vehicle repaired, but will make a cash settlement, as its actual cash value is shown in the “Red Book” as $5,000. What should you tell your insured?
A client who is a new driver has asked for the cheapest vehicle insurance policy available, and expressly requests a policy with no extra endorsements and with the lowest possible limits. Can a Broker sell such a policy to the new driver?
Which statement is CORRECT regarding the application of a "Deductible Clause" in a property insurance policy?
Two business partners at Happy Accounting Limited suffered a loss. It was revealed that the loss was caused by one of the partners Mr.Hap. What options does the insurer have to recover for the loss paid?
According to the Statutory Conditions of a Fire Policy, how much notice must an insurer give when terminating a policy by registered mail?
Stanley recently moved back to Ontario after living abroad for two years. He purchased a vehicle and is asking his Broker for insurance quotes. One insurance company's quote is favourable but the company prefers not to insure Stanley because of the gap in his insurance history. What should the Broker do to act within the scope of his agreement with the insurance company?
A Broker wants to stay current with emerging industry trends and ensure they meet RIBO’s continuing education (CE. obligations before their next renewal. Which action BEST demonstrates investigating new topics and confirming CE requirements to maintain compliance?
A client calls their broker to report a minor fender-bender. They ask the broker if they can "look the other way" and not report it to the insurer so their rates don't go up. What is the broker's ethical obligation?
Angela has an automobile policy with Maple Insurance that renews on August 1, 2026. Before July 1, 2026, Angela had Income Replacement Benefits, Caregiver Benefits, and Housekeeping Benefits included in her policy. Angela does not request any changes. Under the updated Statutory Accident Benefits Schedule (SABS), what happens to these benefits after July 1, 2026?
A Broker is given two days notice from an insurance company that they are getting off risk for a small commercial property account. Which regulation or act outlines regulations governing how insurance companies must handle notice's of expiry or variation?
In the event of a theft of a three-year-old laptop, the insurer offers a settlement based on "Actual Cash Value" (ACV) because the insured does not have a Replacement Cost endorsement. How is this settlement amount determined?
Under the Registered Insurance Brokers (RIB) Act, what must a brokerage do to ensure compliance with trust accounting requirements?
Which is a typical habitational exclusion under a specified perils policy?
Amir, a client, phones the Broker to advise that his insured vehicle is being repaired in a garage. Amir has just signed an agreement for a rental car. Under O.A.P. 1, where would the coverage for his rental vehicle be found?
A client who is currently conducting their business as a sole proprietorship is considering incorporating their business. What would be of MOST benefit to the client?
John, a newly licensed broker, learns about cybersecurity insurance from a friend but feels unsure about some aspects. With clients seeking advice, what steps should he take to improve his knowledge and assist them better?
A well-known professional football player contacts you for Travel Health insurance. The football player tells you they intend to be scuba diving while away and asks if the Travel Health policy will respond to a claim if the football player is injured while in the water. How would you respond?
Bob is operating a restaurant in downtown Toronto. He always keeps cleanliness of the restaurant and safety of his customers in mind. Angela, whose left leg was in a cast, visited the restaurant. She slipped and fell and injured herself. If Angela files a lawsuit against the restaurant, what type of liability is this?
Your insured has leased an automobile for three years and requires automobile insurance. What is the correct procedure?
Under the O.A.P. 1 Owner's Policy, what is the purpose of the "Direct Compensation - Property Damage" (DCPD) section?
A building worth $500,000 is insured for $300,000 with a 90% co-insurance clause. A fire causes $200,000 damage. How much does the insurer pay?
Raj is reviewing optional Income Replacement Benefits with a customer who already has a workplace disability plan. What should Raj do before advising the customer to opt out?
TESTED 16 May 2026
