RIBO Rules and Regulations

Question 1

What does RIBO stand for?

Answer 1

Registered Insurance Brokers of Ontario

Question 2

What is RIBO?

Answer 2

The self-regulatory body for insurance brokers in Ontario

Question 3

Who regulates the insurance industry?

Answer 3

Financial Services Commission of Ontario (FISCO)

Question 4

What are the 5 departments that make up RIBO?

Answer 4

Administration & Finance
Communications & Marketing
Complaints & Investigation
Corporation Legal Services
Qualification & Registration

Question 5

1) What is the Registered Insurance Brokers (RIB) Act?
2) What does it protect?

Answer 5

1) Piece of government legislation which granted self-regulation to insurance brokers in Ontario
2) The interest of insurance consumers

Question 6

What is the definition of an Insurance Broker?

Answer 6

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 or negotiating or procuring the making of any contract
- provides risk management services
- provides consulting or advisory services
- holds themselves out as an insurance consultant or examines, appraises, reviews or evaluates any insurance policy or makes recommendations or gives advice

Question 7

What can a broker restricted to “Acting Under Supervision” not do? (3)

Answer 7

Cannot control trust funds, act as a Principal Broker, or operate as a sole proprietor

Question 8

For an insurance broker acting under supervision, how long is the continuing education requirements?

Answer 8

8 hours

Question 9

What is the maximum length of time required for a broker to provide a a Policy or Certificate of Coverage to the client?

Answer 9

21 days

Question 10

What does the certificate of coverage set out? (4)

Answer 10

• Name & mailing address of insured
• Description of provided coverage
• Full name of each insurer
• Amount of insurance placed with each insurer

Question 11

What is the due date for renewing your broker license?

Answer 11

On or before August 31

Question 12

If you fail to renew your license before the due date, when will your license be suspended?

Answer 12

September 30

Question 13

What is an Unlicensed Insurer?

Answer 13

Insurer not licensed under Insurance Act

Question 14

What are the requirements for insuring under an Unlicensed Insurer? (3)

Answer 14

• Informed client of the risks (i.e. Insurer not subject to regulation under Insurance Act & Orderly payment of claims more difficult)
• Broker obtained written consent of client
• Sufficient insurance cannot be obtained at reasonable rates or on the form of contract required from licensed insurers

Question 15

What is the condition for insuring auto under and Unlicensed Insurer?

Answer 15

Cannot insure unless auto insurance is in excess to minimum liability required by Insurance Act

Question 16

How often does a broker who places insurance with an Unlicensed Insurer have to file?

Answer 16

Quarterly each year

Question 17

How many people and who does a RIBO Council consist of?

Answer 17

13 people total
- 9 elected brokers
- 4 public members

Question 18

What are the 7 RIBO Committees?

Answer 18

1) Administration & Finance
2) Complaints
3) Discipline
4) Legislation
5) Marketing & Communications
6) Professional Development
7) Qualification & Registration

Question 19

What does the Complaints Committee do?

Answer 19

Investigates allegations of professional conduct & determines if there is sufficient evidence to refer the complaint to Discipline Committee

Question 20

What does the Discipline Committee do?

Answer 20

Conducts a hearing to determine innocence/guilt of broker
When broker is guilty, appropriate penalty applied

Question 21

What does the Qualification & Registration Committee do?

Answer 21

Sets & reviews RIBO’s qualification standards
Makes sure businesses & individuals comply with these standards

Question 22

What is a Quorum?

Answer 22

Minimum number of RIBO Council members required to be present for all meetings
- A majority of the members of the Council constitutes a quorum

Question 23

How many continuing education hours are required for a Principal Broker?

Answer 23

10 hours

Question 24

What is the required amount for Errors & Omissions coverage?

Answer 24

Minimum $3 000 000

Question 25

What does Errors & Omissions cover?

Answer 25

Honest mistakes

Question 26

What is the minimum amount required for Fidelity Insurance?

Answer 26

$100 000

Question 27

What does Fidelity Insurance cover?

Answer 27

Dishonest actions/Intentional Harm

Question 28

What does Equity Capitalization entail?

Answer 28

Money in the bank
Requirement to maintain, at all times, the amount equal to the maximum deductible amount of Errors & Omissions and Fidelity Insurance policies

Question 29

What are the amounts for Equity Capitalization?

Answer 29

For sole proprietor = $2500
For corporation/partnership = $5000

Whichever is greater

Question 30

In regards to a Trust Account, what are the 4 ways for dealing with trust money?

Answer 30

• Money deposited into trust account as soon as practicable after receipt
• Must make the deposit or investment with 3 days after $ received
• Money deposited may be subsequently invested
• May withdraw money belonging to member and deposit into general account

Question 31

When requested in writing by RIBO, what is the length of time that all money must be accounted for?

Answer 31

30 days

Question 32

What is a Position Report?

Answer 32

Report presenting the broker’s financial and trust positions as of the fiscal year-end

Question 33

When must a Position Report be filed

Answer 33

1) 9 months from the fiscal year-end based on figures 6 months from fiscal year-end
2) 3 months from the fiscal year-end based on fiscal year-end figures
3) Once a year is using a fiscal year-end figures if they have requested and received an exemption from RIBO

Question 34

What is the maximum fine that can be levied for misconduct
1) Against a brokerage?
2) Against a broker?

Answer 34

1) $100 000
2) $25 000

Question 35

When can a Rebate apply?

Answer 35

When the broker agrees to give up their commission to give the client a discount on their premium