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Service Broker > RIBO > Flashcards

RIBO Flashcards

1
Q

What does RIBO stand for?

A

Registered Insurance Brokers of Ontario

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2
Q

Who does the RIB Act protect?

A

The Registered Insurance Brokers (RIB) Act is a piece of government legislation which granted self-
regulation to insurance brokers in Ontario. This act protects the interest of insurance consumers.

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3
Q

What are three things necessary to qualify for registration as an insurance broker?

A

*Pass RIBO Exam
*Pass Criminal background check
*age of majority

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4
Q

When do all RIBO licenses expire?

A

September 30 of every year

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5
Q

When do all RIBO licenses need to be renewed?

A

August 31 of every year

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6
Q

What does a broker need to do if they have a second occupation?

A

apply for a secondary business exemption

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7
Q

What occupations does RIBO allow them to do?

A

what they feel is not a conflict of interest

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8
Q

How often must a broker file a position report?

A

twice a year

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9
Q

Is there any way they can get this changed to filing only one a year?

A

yes, by filing an exemption

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10
Q

How much notice will RIBO give prior to them doing a spot check at a brokerage?

A

30 days

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11
Q

How many people sit on the RIBO Council?

A

13

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12
Q

How many of the RIBO council are elected?

A

9

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13
Q

How many of the RIBO council are appointed?

A

4

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14
Q

Who appoints the appointees?

A

Lieutenant Governor in Council

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15
Q

How many RIBO Committees are there?

A

7

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16
Q

What does the Complaints Committee do?

A

investigate complaints

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17
Q

What does the Discipline Committee do?

A

set disciplinary actions

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18
Q

What does the Qualification and Registration Committee do?

A

make sure brokers are qualified

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19
Q

How many days do you have to update certain information with RIBO?

A

30

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20
Q

What is a trust account?

A

premium held for insurance companies

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21
Q

How many days does a brokerage have to deposit premium into a trust account?

A

3 banking days

22
Q

Can a broker spend the full amount of the commission they get on a policy?

A

no, only earned commission

23
Q

Can decisions of the Discipline Committee be made public?

A

yes

24
Q

How much time does RIBO allow for a broker to supply either the policy or a certificate of coverage?

A

21 days

25
Q

What information must the certificate of coverage include?

A

The certificate of coverage shall set out,
* the name and mailing address of the insured
* a description of the coverage provided
* the full name of each insurer
* the amount of insurance placed with each insurer

26
Q

What must a broker do if they wish to charge a fee over the premium set out in the policy?

A

advise upfront, in writing, before the policy goes in force

27
Q

How many hours of continuing education must a Principal Broker obtain over a year?

A

10 hours per year

28
Q

How many hours of continuing education must other brokers obtain over a year?

A

8 hours per year

29
Q

What is the responsibility of a Principal Broker?

A

to supervise brokerage operations

30
Q

How does one get an “Unrestricted” license? (Broker)

A

Level II Broker: write two 3 hour exams

31
Q

What is equity capitalization?

A

money in a bank account

32
Q

How much equity capitalization must a sole proprietorship have?

A

greater of $2,500 or amount of deductible

33
Q

How much equity capitalization must a partnership or corporation have?

A

greater of $5,000 or amount of deductible

34
Q

How much errors and omissions coverage must a brokerage carry?

A

$3,000,000

35
Q

How much fidelity insurance coverage must a brokerage carry?

A

$100,000

36
Q

What is the maximum fine for a brokerage for misconduct?

A

$100,000

37
Q

What is maximum fine for an individual broker for misconduct?

A

$25,000

38
Q

What is the difference between an insurance broker and an insurance agent?

A

brokers deal with multiple insurers while agents deal with one insurer or affiliated group of insurers

39
Q

How many people are required to make up a quorum for the RIBO Council?

A

7, including one appointed member

40
Q

What is the definition of an insurance broker in the RIB Act?

A

The RIB Act includes a definition for Insurance Broker which means any person who for any
compensation with respect to persons or property in Ontario, deals directly with the public and:
* acts or aids in any manner in soliciting, negotiating or procuring the making of any contract of
insurance or reinsurance whether or not the person has agreements with insurers allowing the
person to bind coverage and countersign insurance documents on behalf of insurers
* provides risk management services including claims assistance where required
* provides consulting or advisory services with respect to insurance or reinsurance
* holds himself or herself out as an insurance consultant or examines, appraises, reviews or
evaluates any insurance policy or makes recommendations or gives advice

41
Q

What are three things a broker with a license restricted to “Acting Under Supervision” may not do?

A

control trust funds, act as a Principal Broker, or operate as a sole proprietor

42
Q

What is rebating?

A

allowing the client to not pay the full amount of their premium

43
Q

What is the difference between rebating and clever negotiating?

A

clever negotiating is asking the insurer to charge less premium in return for you taking less commission

44
Q

Who are the individuals who may receive a finder’s fee from a broker?

A

Car dealership. Real estate. Mortgage broker. Any occupation that has a fiduciaryresponsibility

45
Q

How long does RIBO require a broker be licensed before he/she can take the exams to remove the restriction on their license?

A

two years

46
Q

What is an unlicensed insurer?

A

an insurance company not licensed in Ontario

47
Q

What makes insuring with an unlicensed insurer a greater risk to an insured?

A

not regulated under the Insurance Act

48
Q

What does Regulation 991 concern itself with?

A

misconduct

49
Q

What must a broker do when placing insurance with an unlicensed insurer?

A

You must:
-fully inform the client of the risks of an unlicensed insurer (unregulated, slower claims process)
-obtain written consent from the client
-make sure there is NO OTHER options

*auto only and liability limits must be above provincial minimum

You must file full report of all policies QUARTERLY and pay all applicablepremiumtaxes.

50
Q

When two position reports have to be file with RIBO, when must they be filed?

A

fiscal year-end and six months from fiscal year-end with three months each time to submit

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