[2026] Use Valid New RIBO-Level-1 Test Notes & RIBO-Level-1 Valid Exam Guide [Q61-Q83]

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[2026] Use Valid New RIBO-Level-1 Test Notes & RIBO-Level-1 Valid Exam Guide

RIBO-Level-1 Actual Questions Answers PDF 100% Cover Real Exam Questions

IIC RIBO-Level-1 Exam Syllabus Topics:

Topic	Details
Topic 1	Travel Health: Deals with travel medical insurance, including coverage for emergencies, eligibility, exclusions, and policy conditions for travelers.
Topic 2	Commercial Lines: Covers insurance solutions for businesses, including property, liability, and risk management tailored to commercial operations.
Topic 3	General Insurance and Industry Knowledge: Covers the fundamentals of insurance principles, policy structure, regulatory environment, and the roles of key stakeholders within the insurance industry.
Topic 4	Personal Lines Automobile: Explains automobile insurance basics such as coverage types, accident benefits, liability, and policy regulations for personal vehicles.
Topic 5	Personal Lines Habitational: Focuses on residential insurance including property coverage, risks, policy types, and protection for homeowners, tenants, and dwellings.

NEW QUESTION 61
Which statement is CORRECT regarding the application of a “Deductible Clause” in a property insurance policy?

If the amount of the loss is less than the amount of the deductible, no indemnity is paid, but if the amount of the loss is greater than the deductible, the loss is paid in full.

From the amount of the loss, the deductible is subtracted and the balance is paid in settlement of the loss.

The amount of the deductible is subtracted from the sum insured. Losses up to this amount are covered in full.

The amount of the deductible is added to the premium and all losses are covered in full.

NEW QUESTION 62
A Broker receives a large cash premium from a client for a new policy. The Broker is in a hurry to meet a friend for lunch and decides to put the cash into their personal bank account, intending to transfer the exact amount to the brokerage’s trust account later that afternoon. What is this action considered under RIBO regulations?

An acceptable temporary measure as long as the funds are transferred the same day.

Commingling of funds, which is an act of professional misconduct.

A standard business practice for brokers working outside of the office.

A minor administrative error that only requires a verbal warning from the Principal Broker.

NEW QUESTION 63
In which situation is it relevant for a property underwriter to request more information?

When the insured has children.

When there is a wood-burning stove in the home.

When the insured is over 65 years old.

When there is no mortgage on the home.

NEW QUESTION 64
What is NOT a duty of the RIBO Qualification and Registration (Q&R) Committee?

To determine the eligibility of applicants for certificates or renewals.

To refuse to issue certificates and renewals to non-eligible applicants.

To maintain one or more registers for certificates and renewals.

To report candidates to Disciplinary Committees.

NEW QUESTION 65
Which is NOT a type of valuation clause in a commercial policy?

Actual Cash Value.

Replacement Value.

Agreed or appraised amount.

Warranty Value.

NEW QUESTION 66
An accountant purchased an Errors and Omissions (E & O. policy on a claims made basis with a retroactive date of January 1, 2020. The accountant reports a claim to their Broker on March 1, 2025 for an error that occurred on June 5, 2021, while their current policy is in force and uninterrupted. How will the insurer most likely respond?

The claim will be denied because the error occurred more than one year ago.

The claim will be covered because both the error and the claim fall within the policy and retroactive periods.

The claim will be denied because the policy was not in place at the time of the error.

The claim will be covered as it was immediately reported upon discovery.

NEW QUESTION 67
What is NOT a form of Business Interruption insurance?

Gross Earnings Insurance.

Profits Insurance.

Extra Expense Insurance.

Consequential Loss Insurance.

NEW QUESTION 68
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?

Obtain approval for the risk from the Principal Broker for approval and then submit the completed application to the insurer.

Discuss the risk with the insurer’s underwriter for binding approval and then submit the completed application to the insurer.

Discuss the risk with colleagues first and then submit the completed application to the insurer.

Submit the application without the driving gap as this will get Stanley the best rate.

NEW QUESTION 69
What is the meaning of implied consent?

The act where a person gives declarative permission for a specific action to be taken by the other party to which they both agreed.

The ability for one party to infer to another party how to proceed.

The assumption that a person has given permission for an action which is inferred from their actions rather than expressly provided.

The act where a third party gives declarative permission for a specific action to be taken by the first party to which they both agreed.

NEW QUESTION 70
According to the Statutory Conditions of a Fire Policy, Statutory Condition 2 – Property of Others states that the insurer is NOT liable for property owned by others unless:

The property is worth less than $500.

The interest of the insured in that property is specifically stated in the contract.

The property is located in the insured’s backyard.

The owner of the property also has their own insurance.

NEW QUESTION 71
An insured is involved in an accident where a third party is 100% at fault. The insurer pays the insured $5,000 for their car repairs. The insurer then sues the third party to recover that $5,000. What is this legal process called?

Indemnity.

Contribution.

Subrogation.

Arbitration.

NEW QUESTION 72
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)?

30 days.

45 days.

60 days.

90 days.

NEW QUESTION 73
Which of the following situations is covered under the “Watercraft, Outboard Motor Trailer, and Miscellaneous Equipment” coverage rider attached to a Homeowners policy?

A scheduled boat and motor vessel used to carry cottagers from the marina to their island property for compensation.

A loss, not otherwise excluded, to an insured outboard motor while being used by the insured in Florida.

Damage to the hull of the watercraft caused by ice resulting from failure to drain the compartments when the watercraft was stored for the winter.

Damage caused by beavers using the watercraft as a winter home while in storage in the insured’s boathouse.

NEW QUESTION 74
Under the Registered Insurance Brokers (RIB) Act, what must a brokerage do to ensure compliance with trust accounting requirements?

Provide a monthly statement of account to each insurance company they represent.

Maintain a general account with a minimum balance specified by RIBO.

Maintain a separate trust account for premiums collected from clients.

Restrict access to trust accounts to licensed Brokers only.

NEW QUESTION 75
Under the Uninsured Automobile Coverage, who is covered for bodily injury or death?

Insured’s spouse walking on the sidewalk who gets hit by an unidentified vehicle.

A pedestrian on the sidewalk who gets hit by an identified vehicle.

Director of a corporation who is injured driving an undescribed vehicle.

A dependent of the insured who is a passenger of a vehicle that is hit by an unidentified automobile and has their own insurance.

NEW QUESTION 76
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?

Fire insurance policy.

Liability insurance policy.

Burglary insurance policy.
. Marine insurance policy.

NEW QUESTION 77
Claudia contacts the Broker requesting a binder certificate for the second mortgage with a private lender.
What is NOT an underwriting concern with this request?

The lender is not regulated like charter banks.

Insured is going through a financial hardship.

Insured is staging a loss to alleviate financial problems.

The lender is located in another province.

NEW QUESTION 78
Which of the following is NOT a valid reason for using a “Telephone Hot-line” to report claims?

To direct customers to appropriate medical facilities.

To determine urgency of the insured’s condition.

To control costs.

To report the incident to the Financial Services Regulatory Authority of Ontario (FSRA..

NEW QUESTION 79
A client has a homeowner’s policy with replacement cost coverage for personal property. A covered fire loss destroys several items, including a 3-year-old television originally purchased for $2,000. The same model today retails for $1,500. The insurer issues a cheque for $1,500 to replace the TV. Which of the following best explains how the principle of indemnification is applied in this situation?

The insurer is overpaying the claim because the item has depreciated.

The insurer should have paid the original purchase price since that reflects the insured’s original investment.

The insurer is correctly applying replacement cost to restore the insured to their pre-loss position with an item of similar like kind & quality.

The insurer should reduce the payment based on the TV’s actual cash value, even though replacement cost is selected.

NEW QUESTION 80
A Level 1 broker is interested in removing their “Acting Under Supervision” restriction to become a Level 2 (Unrestricted) broker. According to the RIBO licensing structure, what is the standard requirement to achieve this advancement?

Complete 2 years of experience as a Level 1 broker and pass the Level 2 (Technical) examination.

Complete 1 year of experience as a Level 1 broker and obtain a recommendation from their Principal Broker.

Simply complete 24 hours of Continuing Education (CE) credits in a single year.

There is no longer a Level 2; all brokers move directly from Level 1 to Level 3 Management.

NEW QUESTION 81
Which of the following would be considered a Moral Hazard?

Poor wiring in a home.

Client overstating value of stolen items.

Use of asbestos insulation.

High traffic area prone to collisions.

NEW QUESTION 82
According to the Registered Insurance Brokers (RIB) Act, how long MUST Brokers maintain records of their transactions?

4 years.

5 years.

6 years.

7 years.

NEW QUESTION 83
A member of the public comes to see you to obtain automobile insurance. They bring a current Motor Vehicle Abstract of Driving Record which shows a recently completed term of License Suspension. You decide you do not want that person as a client. What are you legally obliged or allowed to do?

Tell them you cannot arrange insurance for someone whose license has only recently been reinstated.

Refer them to another broker for coverage.

Bind coverage with an insurer for minimum PL & PD and Accident Benefits and submit an application for rating.

Give them a blank application to be completed, which you must then forward to an insurer.