Insurance Institute RIBO-Level-1 Exam Questions Instant Access

Question 1

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?

ABoth Sally and Tammy.

BNeither Sally nor Tammy.

COnly Sally.

DOnly Tammy.

Answer : C

The correct answer is C. Only Sally. The key issue is that Sally has OPCF 27 coverage, which is the Ontario endorsement for Legal Liability for Damage to Non-Owned Automobiles. FSRA explains that if an Ontario auto policy includes OPCF 27, the insured already has coverage for damage to a vehicle they do not own, such as a rental vehicle, and that this protection applies in Canada and the United States.

The OAP 1 also gives a helpful example: when your friend rents a car and you are driving it, if insurance is available under your own policy, then your insurer may respond after any available coverage under the renter's policy. In this question, Tammy is the one who made the reservation, but Tammy is not listed on any policy, so there is no separate policy coverage for Tammy to rely on. Sally, however, does have insurance available under her own policy, including OPCF 27, so she is the one covered for driving the rental vehicle.

A is incorrect because Tammy has no policy-based coverage described. B is wrong because Sally does have coverage. D is wrong because Tammy is the renter but not the insured driver with OPCF 27. This tests the distinction between the person renting the car and the person whose own policy extends coverage to a non-owned automobile.

Question 2

The RIBO Code of Conduct is outlined in Ontario Regulation 991, Section 14. Which provision is NOT outlined in the Code of Conduct?

ATo maintain a Trust Account for all trust money received.

BTo be both candid and honest when advising the member's client.

CNot to charge or accept any fee which is not fully disclosed prior to the service being rendered.

DTo be competent to perform the services which the member undertakes on the client's behalf.

Answer : A

This question requires a precise distinction between the RIBO Code of Conduct (Section 14) and the broader Ontario Regulation 991. While maintaining a Trust Account (Option A) is a fundamental legal requirement for all brokerages, it is technically governed by Section 16 of the Regulation, whereas Section 14 is dedicated specifically to the professional behavior and ethical standards of the individual member.

The RIBO Level 1 Blueprint emphasizes that Section 14 focuses on the 'human' element of the profession: Integrity, Competence, and Candor. Provision 2 of the Code mandates that a member must be competent (Option D), Provision 4 requires being candid and honest (Option B), and Provision 5 prohibits undisclosed fees (Option C). These ethical pillars ensure that the relationship between the broker and the public is built on trust and transparency.

Understanding this distinction is vital for Legal and Regulatory Compliance. A broker must know that 'Competence' means more than just passing an exam; it involves a continuous duty to serve the client in a conscientious and diligent manner. While the Principal Broker handles the administrative setup of the trust account, the individual Level 1 broker must adhere to the Section 14 standards in every interaction. By identifying that trust accounting is a separate regulatory duty from the Code of Conduct's ethical provisions, the broker demonstrates a sophisticated understanding of the RIB Act and its supporting regulations. This clarity is essential for Professionalism, as it helps the broker navigate the difference between 'business operations' and 'professional duty of care.'

Question 3

Under the Personal Information Protection and Electronic Documents Act (PIPEDA., what is the first step a broker should take when they suspect an accidental disclosure of a client's personal information?

AContact the office's designated privacy officer to report the suspected breach.

BUpdate the client's file with a note about the potential breach for future reference.

CDevelop a new data storage protocol to prevent such breaches from occurring again.

DDelete all potentially impacted files to eliminate further risks.

Answer : A

The correct answer is A. Under PIPEDA's Accountability principle, organizations must appoint someone to be responsible for PIPEDA compliance and identify a designated privacy official with authority to intervene on privacy issues. The same guidance says organizations must develop, document and implement breach and incident-management protocols and train staff on privacy responsibilities. That means when a broker suspects an accidental disclosure of personal information, the proper first step is to report it internally to the designated privacy officer or privacy lead, so the organization can activate its breach-response process.

Option B may happen later as part of documentation, but it is not the first response step. Option C is a longer-term corrective measure, not the immediate action required when a suspected breach is discovered. Option D is inappropriate because deleting files could interfere with investigation, reporting, containment, and proper breach management. PIPEDA also requires organizations to protect personal information against unauthorized disclosure and to use appropriate safeguards, which supports prompt internal escalation rather than ad hoc action by the individual employee.

From a RIBO perspective, this reflects confidentiality, professionalism, and proper information governance: recognize the issue, escalate it immediately to the designated privacy officer, then follow the brokerage's incident protocol.

Question 4

A Broker is required to provide a client with confirmation that coverage is in effect. In this regard, Brokers are required to

AIssue a confirmation letter on brokerage letterhead indicating the start date of coverage.

BProvide a policy or a binder within 21 days after placing the insurance coverage.

CEnsure the policy is issued within 30 days of the effective date of the policy.

DIssue a receipt of payment showing the insurer's name and the coverage start date.

Answer : B

The correct answer is B. Ontario Regulation 991 under the Registered Insurance Brokers Act requires a broker acting on behalf of a member of the public in negotiating or placing insurance to provide a policy or certificate of coverage within 21 days after the placing of the insurance. That is the formal evidence that the insurance has been placed and that coverage is in effect. The regulation's wording is the source of this requirement, and exam questions often test it using slightly different phrasing such as ''confirmation that coverage is in effect.''

Option A is not sufficient because a brokerage letter is not the prescribed evidence required by the regulation. Option C is incorrect because the rule is not ''within 30 days of the effective date''; the actual timing requirement is 21 days after placing the insurance. Option D is also incorrect because a receipt for payment is not the required proof of placed insurance under the regulation.

For RIBO purposes, this rule is important because it protects consumers by ensuring they receive prompt documentary proof that coverage has been arranged. It also supports transparency, proper file handling, and regulatory compliance in broker-client transactions.

Question 5

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?

ATime of day driven and rapid acceleration.

BNumber of drivers in the vehicle and hard braking.

CWhere the vehicle is driven and gross vehicle weight.

DNumber of kilometers driven and occupation.

Answer : A

This question explores the Risk Identification and Classification competency through the lens of modern Telematics and User-Based Insurance (UBI). UBI represents a shift in automobile insurance from 'static' rating factors (like age or postal code) to 'behavioral' rating factors.

According to the RIBO Level 1 Blueprint, a broker must understand how technology is used to personalize risk. Telematics devices or smartphone apps track specific driving behaviors that are actuarially linked to the likelihood of a claim. Time of day driven is a critical factor; driving late at night is statistically more dangerous due to reduced visibility and a higher prevalence of impaired or fatigued drivers. Rapid acceleration and hard braking are indicators of aggressive or 'jackrabbit' driving, which increases the probability of a collision.

During Consulting and Advising, a broker must explain to the client that participating in a UBI program can lead to significant premium discounts for safe driving. However, the broker must also be transparent about Privacy and Information Management. The client needs to know that their data is being collected and used to form a 'score.' This aligns with the Fair Treatment of Consumers principle, ensuring the client understands the trade-off between privacy and potential savings. A broker's ability to explain these technical elements helps the client make an informed choice about whether UBI is right for their lifestyle, thereby fulfilling the Relationship Management and Risk Assessment requirements of the competency profile.

Question 6

Which of the following statements is TRUE about the O.A.P. 1 Owner's Policy optional coverage "OPCF 44R-Family Protection Coverage?

AIt will protect the insured for injuries received as a pedestrian when the driver of a vehicle which causes the injuries does not carry sufficient insurance.

BIt is automatically included under Section 4-Accident Benefits of the policy.

CIt is not available to commercial vehicles because injuries received by passengers in such vehicles are covered under Worker's Compensation legislation.

DIt pays for benefits to insured's passengers who are under-insured in the amount of any accident and sickness insurance they carry on themselves.

Answer : A

The OPCF 44R (Family Protection Coverage) is one of the most important endorsements a broker can recommend, addressing a significant gap in the standard Legal Liability framework. Under the RIBO Level 1 Blueprint, a broker must understand that this coverage protects the 'insured' (and their family) if they are injured by a third party who is underinsured or uninsured.

While Section 5 (Uninsured Auto) of the OAP 1 covers some losses, its limits are often capped at the statutory minimum ($200,000). If an insured is struck as a pedestrian (Option A) by a driver who only has $200,000 in liability, but the insured's injuries are worth $1 million, the OPCF 44R 'tops up' the payout to the insured's own liability limit (e.g., $1 million).

The broker's role in Consulting and Advising is to emphasize that this coverage follows the person, not just the car. It protects the family whether they are in their own car, a friend's car, or walking down the street. Option B is false; it is an optional endorsement, not a mandatory benefit. Option C is false; it is available for many types of vehicles. Option D is incorrect because it relates to the third-party's liability limit, not the passenger's personal accident insurance.

This technical knowledge is critical for Risk Identification and Assessment. A broker should almost always recommend the OPCF 44R to ensure the client has the same level of protection for themselves as they have provided for the people they might hit. Providing this advice is a key part of Relationship Management, as it demonstrates the broker's commitment to the client's personal financial security.

Question 7

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?

AThe benefits continue until Angela's renewal date.

BThe benefits end on July 1, 2026 unless Angela purchases them as optional benefits.

CThe benefits continue automatically as optional benefits with the same coverage levels that Angela had before July 1, 2026.

DThe benefits change automatically to the lowest available optional limits.

Answer : A

This question addresses the significant 2026 SABS Reform in Ontario, which takes effect on July 1, 2026. Under this reform, many previously mandatory benefits---such as Income Replacement, Caregiver, and Housekeeping---transition to being optional benefits. The RIBO Level 1 Blueprint requires brokers to understand the transition rules for existing policyholders to avoid coverage gaps and ensure Legal and Regulatory Compliance.

For policies already in force before July 1, 2026, the existing contract remains legally binding until its expiry or renewal date. This means Angela's coverage does not 'drop off' or change mid-term on July 1. Her benefits continue under the old rules until her specific renewal date of August 1, 2026. At the point of renewal, the 'existing member' transition rule applies: to protect consumers, insurers are required to automatically renew the existing coverage levels as optional selections unless the client expressly chooses to opt out or change them. This ensures that a client who forgets to review their renewal notice is not suddenly left without critical income protection.

As part of the Consulting and Advising competency, a broker must proactively inform clients like Angela that while her benefits are safe until August, her next renewal will reflect a shift from 'mandatory' to 'optional' status. The broker must conduct a 'Needs Assessment' to confirm if these optional benefits still align with her lifestyle (e.g., if she has external disability insurance). Failure to explain this change could lead to an Errors and Omissions (E&O) claim if the client later removes the benefits to save money without understanding the loss of protection. The reform shifts the burden of 'choice' to the consumer, making the broker's role as an expert navigator of the OAP 1 more vital than ever.

Insurance Institute RIBO Level 1 Entry-Level Broker RIBO-Level-1 Exam Questions