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72 Cards in this Set
- Front
- Back
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What does RIBO stand for? |
Registered Insurance Brokers of Ontario |
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Who does RIB legislation protect |
Insurance Consumer |
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3 things necessary to qualify for registration as an insurance broker? |
Age / Exam / No insurance license suspended prior |
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3 things a broker with a license restricted to "Acting Under Supervision" may not do? |
Be Principle Broker / Maintain Trust Account / Open Own Brokerage |
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When do the RIBO licenses expire |
Sept 30 each year |
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When do the RIBO licenses need to be renewed |
31 Aug each year |
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What does a broker need to do if they have a second occupation? |
Get secondary business exemption |
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What occupations does RIBO allow brokers to continue to do? |
What RIBO feels is not a conflict of interest |
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How often must a broker file a position report? |
Twice a year |
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Is there any way they can get a position report filed once a year? |
Yes, on request of an exemption |
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How much notice will RIBO give prior to them doing a spot check at a brokerage? |
30 days |
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How many people sit on the RIBO council? |
13 |
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How many of the RIBO council are elected? |
9 |
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How many of the RIBO council are appointed? |
4 |
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Who appoints the RIBO council appointees? |
Ontario lieutenant governor in council |
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How many committees of RIBO are there? |
7 |
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What does the Complains Committee do? |
Investigate Complaints |
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What does the Disciplinary Committee do? |
Set Disciplinary Actions |
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What does the Qualification and Registration Committee do? |
Make sure brokers are qualified |
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How many days does one have to update certain RIBO information? |
30 days |
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What is a Trust Fund?
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Insurance premium held in trust for the insurance companies |
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How many days does the brokerage have to deposit premium into a trust account? |
3 banking days |
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Can a broker spend the full amount of the commission he gets on a policy? |
No, takes it out as it is earned |
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Can decisions of the discipline committee be made public? |
Yes, unless committee indicates otherwise. |
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How much time does RIBO allow for brokers to supply either a policy or a certificate of insurance? |
21 days |
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What information must the certificate of insurance include? |
Name of Insured / Name of Insurer / Type of Coverage / Effective Date |
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What must a broker do if they wish to charge a fee over the premium set out in the policy? |
Advise the insured upfront
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How many hours of continued education must a Principle Broker obtain over a year? |
10 |
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How many hours of continued education must a Broker obtain over a year? |
8 |
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What is the responsibility of the Principle Broker? |
Supervise brokers and the operations of the brokerage |
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How does one get an unrestricted license - to become a Principle Broker? |
Write two 3 hour exams |
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What is Equity Capitalization? |
Money in the bank |
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How much Equity Capitalization must a sole proprietor have? |
Greater of $2500 or equal to the deductible on their 'Errors and Omissions' coverage deductible |
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How much Equity Capitalization must a partnership or corporation have? |
Greater of $5000 or the amount on the 'Errors and Omission' policy deductible |
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How much 'Errors and Omission' coverage must a brokerage carry? |
$3 Million |
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How much Fidelity coverage must a brokerage carry? |
$100,000 |
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What is the maximum fine for a brokerage firm for misconduct? |
$100,000 |
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What is the maximum fine for an individual broker for misconduct? |
$25,000 |
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What is the difference between an insurance broker and an agent? |
Agent - One company Broker - Many Companies |
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How many people are required to make up a Quorum for the RIBO council? |
Majority - 7 council members ( one must be appointed ) |
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What is rebating? |
Allowing the client to not pay the full amount of his premium |
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What is the difference between Rebating and Clever Negotiation? |
Rebating - Allowing the client to not pay the full amount of his premium.
Clever Negotiating - Asking the insurer to issue the policy at a reduced premium for a lessor commission |
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Who are the individuals who may receive a finder's fee from a broker? |
Insurance Agent Seller of Mutual Funds Real Estate Broker Mortgage Broker Financial Planner Insurance Premium Financier Risk Manager |
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How long does RIBO require a broker be licensed for before they can take the exams to remove the restrictions? |
2 years |
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Who / What is an unlicensed insurer? |
An insurance company not licensed in Ontario |
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What makes insuring with an unlicensed company a greater risk to an insured? |
Not regulated by the government of Ontario |
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What must a broker do when placing insurance with an unlicensed insurer? |
Advise the insured that the insurer is Not licensed in Ontario. Get written consent from insured to place cover with them. Advise payments of claims might take longer.
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What does Regulation 991 concern itself with? |
Misconduct |
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When two position reports have to be filed with RIBO, when must they be filled? |
Figures based on fiscal year end and six months from fiscal year end with 3 months each time to submit. Example - May 21 First = August 21 second = February 21
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List 13 behaviours that RIBO considers Misconduct |
False Advertising. Unfair comparison of policy. No rebate of premium or giving gifts to induce someone to take out policy. Agreement as to the amount of premium other than that on policy (Clever negotiating allowed). Harassing or using undue force to direct or control client. Providing false or misleading information to RIBO. Not meeting the 8 - 10hours of Educational Requirements. Carrying on business in any other manner that the name in which the individual or broker is registered. Conduct that results in delay in claim payment. Failing to follow the code of conduct. Failure to follow the RIB act. Acting as an insurance broker when not one. Convicted of a criminal offense after October 1981. |
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Define an Insurance Broker |
1. Any person who for compensation or other thing of value; with respect to persons/ property in Ontario, deals with the public. 2. Provides risk management including claims assistance. 3. Provides consulting/ advisory services with respect to insurance/ reinsurance. 4. Soliciting, negotiating or procuring the making of any contract of insurance whether or not person has agreement with insurer allowing a person to bind coverage and countersign insurance or reinsurance docs. 5. helping friends with insurance. |
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Code of conduct 'rules'? |
1. Integrity 2. Competent 3. Conscientious, diligent, efficient manner 4. Hold all information obtained from clients in confidence except when negotiating insurance with underwriters and insurers. 5. Care of property intrusted to them by the client - documents. 6. Not allow practice of a second job to compromise their integrity, competence and independence as a broker. 7. Shall disclose a conflict of interest or potential conflict of interest to client. 8. Not charge unfair or undisclosed service fees. 9. Encourage respect for the broker as a profession 10. Make their services available to the public providing competent and fair service. 11. Act in such a way as to maintain the integrity of the profession and participate in insurance industry activities. 12. Report anyone who is acting as a broker when they are not a broker. 13. Treat other brokers, insurers, clients and RIBO employees with courtesy and good faith.
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What's the minimum amount of fidelity insurance a member must carry? |
$100 000 |
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What's a designated individual? |
Someone who Directs and supervises the sole proprietorship, partnership or cooperation in acting as an insurance broker and has the authority to act in its name and on its behalf regarding applications and reports required under this act. |
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The minimum amount of errors and permission and Fidelity insurance every member shall maintain is: |
$3 000 000 and $100 000 |
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Who cannot be an insurance Broker? |
Someone who has had a license under the insurance act suspended or revoked |
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What is not misconduct under the RIB act? |
Asking the insurer to reduce the commission so the policy can be offered to prospective clients at a lower premium |
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An employee of the brokerage office who is not a qualified who is just a broker may: |
Type letters and perform any purely clerical functions |
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When an insurance broker moves from a brokerage firm and begins working for a different firm, the individual must advise RIBO in how many days: |
30 Days |
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Which is not a broker's responsibility as determined by the RIB act? |
Set claims reserves following the report of a loss |
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RIBO Is made up of how many departments? |
5 Departments |
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Are you allowed to place business with an unlicensed insurer? |
Yes |
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When does an election of members to council take place? |
On the 1st Monday of November and every year and at each election 3 persons are elected to the council for a term of 3 years |
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How often does RIBO post a bulletin? |
Quarterly |
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How often does RIBO post a report on the website? |
Annually |
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Can the decisions of the discipline committee be made public? |
Yes |
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A friend of yours is a mortgage broker are you able to give her a finder's fee? |
Yes |
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Can trust money be used to meet payroll? |
No |
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How often do you have to submit a report to the superintendent of insurance for unlicensed insurer? |
Quarterly |
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Can you hand out your brokerage business cards while bartending in a local bar? |
No. Both Occupations must be kept separate |
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What does section 991 of the RIB act, concern itself with? |
Conduct and misconduct |
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Is RIBO self regulatory? |
Yes |
