RIBO Level 1 flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

RIBO

The Registered Insurance Brokers of Ontario, the self-regulatory body that licenses and disciplines Ontario insurance brokers under the Insurance Brokers Act, 2002, separate from government insurer supervision.

Level 1 licence

An entry-level Ontario broker licence sponsored by a registered brokerage; it permits general insurance brokering under supervision but excludes life insurance and independent authority.

Sponsoring brokerage

The RIBO-registered brokerage that employs or engages a broker and through which the individual licence is activated; without it the licence cannot be used to transact business.

Continuing education requirement

RIBO requires licensed brokers to complete structured continuing education hours each licence year, including ethics-related content, and to retain records for audit.

Errors and omissions insurance

Mandatory professional liability coverage held at the brokerage level that responds to claims arising from negligent acts or omissions in brokering insurance.

Indemnity principle

The insured is restored to the approximate financial position held before the loss, no better and no worse; valued policies are an exception.

Insurable interest

A financial relationship with the subject matter such that the insured benefits from its preservation or suffers loss from its damage; required for an enforceable property or liability claim.

Utmost good faith

The mutual duty of insured and insurer to disclose all material facts; a fact is material if it would influence a prudent underwriter's acceptance or pricing decision.

Actual cash value

Replacement cost of the damaged property minus depreciation, reflecting the property's value at the time of loss rather than the cost of a new equivalent.

Co-insurance clause

A property condition requiring insurance equal to a stated percentage of value; if underinsured, the claim is reduced by the ratio of insurance carried to insurance required.

Subrogation

The insurer's right, after paying a claim, to step into the insured's shoes and recover the loss from the negligent third party responsible for it.

Contribution

The principle that insurers covering the same loss at the same level share it rateably, so the insured cannot recover more than the actual loss.

DCPD coverage

Direct Compensation–Property Damage: the insured's own insurer pays for damage to the insured vehicle when another identified driver is at fault, with no subrogation against that driver.

Fault Determination Rules

Ontario regulation prescribing fault percentages for common accident scenarios, such as rear-end and left-turn collisions, used to settle DCPD and accident benefit consequences.

Statutory Accident Benefits

Mandatory Ontario auto benefits covering medical and rehabilitation expenses, income replacement, attendant care, and death benefits after an accident, regardless of fault.

Income replacement benefit

A statutory accident benefit paying a percentage of gross weekly income up to a policy maximum, subject to a waiting period and reduced by collateral sources such as WSIB.

OPCF 44R

The Family Protection endorsement that covers the shortfall when an at-fault motorist is uninsured or underinsured, protecting the insured and resident family members.

Facility Association

The residual market insurer of last resort in Ontario, providing mandatory auto coverage to drivers unable to obtain insurance in the voluntary market, at higher rates.

All risks property form

A property form covering all perils except those expressly excluded, shifting the burden to the insurer to prove an exclusion applies rather than the insured proving a listed peril.

Named perils form

A property form covering only the perils listed in the policy, such as fire, lightning, windstorm, and vandalism; the insured bears the burden of proving a listed peril caused the loss.

Replacement cost coverage

A property valuation basis paying the cost to repair or replace with new property of like kind and quality, without depreciation, usually conditioned on actual repair or replacement.

Vacancy condition

A policy condition that suspends or restricts coverage after a property has been vacant for a specified period, because vacancy increases the risk of loss and vandalism.

Mortgage clause

A property policy provision protecting the lender's interest by requiring notice of cancellation and paying the mortgagee to the extent of its interest in a loss.

Business interruption

Coverage for lost earnings and continuing expenses during the period needed to restore a damaged business, requiring proof of lost income rather than physical damage alone.

Occurrence form

A liability policy that responds to bodily injury or property damage that happens during the policy period, regardless of when the claim is later reported.

Claims-made form

A liability policy responding to claims first made and reported during the policy period, subject to a retroactive date before which acts are not covered.

Commercial general liability

A liability form covering third party bodily injury and property damage arising from premises, operations, products, and completed work, with defence costs and aggregate limits.

Products-completed operations

CGL coverage for injury or damage arising from the insured's products or completed work away from the premises, typically subject to its own aggregate limit.

Professional liability

Claims-made coverage for negligent acts, errors, or omissions in rendering professional services, with coverage depending on the retroactive date and prior acts provisions.

Aggregate limit

The maximum total the insurer will pay for all covered claims in a policy period; paid claims reduce the remaining aggregate available for later losses.

Fiduciary duty

A broker's obligation to act in the client's best interest, place the client's interest ahead of the broker's or insurer's, and disclose any conflict of interest.

Remuneration disclosure

The broker's obligation to tell the client how the broker is compensated, including commission, fees, and any contingent or profit-sharing arrangements affecting the recommendation.