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RIBO-Level-1 RIBO Level 1 Entry-Level Broker Exam is now Stable and With Pass Result | Test Your Knowledge for Free

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RIBO-Level-1 Practice Questions

RIBO Level 1 Entry-Level Broker Exam

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Total Questions : 214

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Question # 51

A new regulation has been introduced requiring brokers to prioritize data encryption in all communications with clients to enhance cybersecurity. According to the new regulation, what is the FIRST action a broker should take to comply with data encryption requirements?

Options:

A.  

Respond immediately to the client's urgent query.

B.  

Address the cybersecurity alert first.

C.  

Initiate the internal system update.

D.  

Discuss with a colleague which action to take first and wait for their formal approval.

Discussion 0
Question # 52

What is NOT asked on an automobile application?

Options:

A.  

Named Insured.

B.  

Effective Date.

C.  

License Plate.

. Loss Payee.

Discussion 0
Question # 53

What responsibilities does the Financial Services Regulatory Authority of Ontario (FSRA) have for automobile insurance in Ontario?

Options:

A.  

Licensing Brokers to sell auto insurance in Ontario.

B.  

Determining the Fault Determination Rules in an auto accident.

C.  

Working on behalf of customers to govern rules and rates Insurance Companies can offer.

D.  

Providing Motor Vehicle Reports and Claims History Reports for new policies.

Discussion 0
Question # 54

A brokerage owned by an insurance company pressures its Brokers to prioritize selling the company’s policies, even when other insurers offer better coverage for certain clients. A Broker realizes that a competitor’s policy would better suit a client’s needs but feels pressured to sell the in-house product instead. What is the Broker’s ethical responsibility in this situation?

Options:

A.  

Follow the brokerage’s directive and sell the in-house policy to maintain job security.

B.  

Disclose the conflict of interest to the client and present all suitable options transparently.

C.  

Avoid discussing competitor policies unless the client specifically asks about them.

D.  

Convince the client that the in-house policy is the best option, even if it isn’t.

Discussion 0
Question # 55

What can affect the amount of settlement an insured would receive as a result of an insured loss?

Options:

A.  

All perils rider.

B.  

Named perils rider.

C.  

Co-insurance clause.

D.  

Subrogation clause.

Discussion 0
Question # 56

Patricia is being sued for $3 million as a result of an automobile accident where she was deemed 50 percent at-fault. At the time of the loss, Patricia had an automobile policy with Globex Insurance Company and held a liability limit of $2 million. She also had an Umbrella Policy with Eiffel Insurance Company with a $2 million Limit. If the claimant is awarded $3 million, how is the claim payment structured?

Options:

A.  

Globex Insurance covers $2 million and Eiffel Insurance covers the remaining $1 million.

B.  

Globex Insurance covers $1 million and Eiffel Insurance covers the remaining $2 million.

C.  

Globex Insurance covers $2 million and Patricia pays the remaining $1 million.

D.  

Globex Insurance covers $1.5 million as Patricia was deemed 50 percent at fault.

Discussion 0
Question # 57

Tara calls their Broker to advise them that, whilst Tara was driving home from work, a deer jumped across the road and hit their car causing significant damage. Which coverage does this claim fall under?

Options:

A.  

Specified Perils.

B.  

Accident Benefits.

C.  

Liability.

D.  

Comprehensive.

Discussion 0
Question # 58

Under the O.

A.  

P. 1 Owner's Policy, what is the standard deductible for a "Direct Compensation - Property Damage" (DCPD) claim in Ontario?

Options:

A.  

$300.

B.  

$500.

C.  

$0.

D.  

$1,000.

Discussion 0
Question # 59

Which of the following actions is MOST appropriate for a RIBO Level 1 licensee working under the supervision of a Principal Broker?

Options:

A.  

Take responsibility for establishing office policies and procedures.

B.  

Rely on the Principal Broker for guidance when uncertain about compliance with regulatory requirements.

C.  

Maintain all client communications and files without Principal Broker oversight.

D.  

Solicit insurance business in areas outside of the brokerage's designated territory.

Discussion 0
Question # 60

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.

Options:

A.  

Contact the client to verify the missing information and record the source of the confirmation.

B.  

Notify the Principal Broker and leave the files unchanged until further instruction.

C.  

Document the missing fields as “unknown” and keep a record of the impacted files.

D.  

Delete incomplete records to avoid retaining inaccurate client information.

Discussion 0
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