⚖️ Ontario Insurance Act, RIBO Regulation and the Code of Conduct

1. Which statute created the Registered Insurance Brokers of Ontario?

1. The Compulsory Automobile Insurance Act, R.S.O. 1990, c. C.25
2. The Insurance Act, R.S.O. 1990, c. I.8
3. The Financial Services Regulatory Authority of Ontario Act, 2016
4. The Registered Insurance Brokers Act, R.S.O. 1990, c. R.19

RIBO is the self-regulating body created by the Registered Insurance Brokers Act, R.S.O. 1990, c. R.19. The Insurance Act governs insurers, agents and adjusters, while FSRA is created by its own statute.

2. Who must hold a RIBO licence in Ontario?

1. Only brokers who also handle claims on behalf of their clients
2. Only the owner of the brokerage, who alone is answerable for the conduct of the firm as a whole
3. Only brokers who place commercial lines business with an insurer
4. Anyone who deals with the public in general (property and casualty) insurance as a broker

The Registered Insurance Brokers Act requires every individual who acts as a general insurance broker with the public to be registered with RIBO, regardless of the class of business handled or the person's role in the firm.

3. A candidate asks why Ontario general insurance brokers are not licensed directly by the provincial regulator like agents are. What is the correct explanation?

1. Brokers are not regulated at all in Ontario
2. Brokers are federally regulated because many insurers are federally incorporated
3. The Registered Insurance Brokers Act delegated broker regulation to a self-governing profession, RIBO
4. Brokers are licensed by the Insurance Bureau of Canada

Ontario is unique in delegating the regulation of general insurance brokers to a self-governing body. The Registered Insurance Brokers Act gives RIBO the power to register, set standards for and discipline brokers; the Insurance Bureau of Canada is a trade association, not a regulator.

4. Which of the following is a power RIBO exercises over its registrants?

1. Approving automobile insurance rates
2. Setting qualification standards and disciplining brokers
3. Licensing insurance companies to transact business in Ontario
4. Adjudicating statutory accident benefit disputes between the parties

Under the Registered Insurance Brokers Act, RIBO qualifies, registers, inspects and disciplines brokers. Rate approval and insurer licensing belong to FSRA, and accident benefit disputes go to the Licence Appeal Tribunal.

5. An unregistered person negotiates general insurance contracts with the public for compensation in Ontario. How is this treated?

1. It is permitted if a registered broker later reviews the file
2. It is an offence under the Registered Insurance Brokers Act
3. It is permitted if the person works for a licensed insurer directly
4. It is a matter for the client's civil remedies only

Acting as an insurance broker without registration is an offence under the Registered Insurance Brokers Act, not merely a private wrong. Later review by a registered broker does not cure the unregistered activity.

6. What does the acronym RIBO stand for?

1. Regulated Insurance Business of Ontario
2. Registered Insurance Brokers of Ontario
3. Registry of Insurance Brokers and Officers
4. Regional Insurance Brokers Organization

RIBO is the Registered Insurance Brokers of Ontario, the self-regulatory body established by the Registered Insurance Brokers Act, R.S.O. 1990, c. R.19.

7. Which body writes the rules of professional conduct that Ontario general insurance brokers must follow?

1. The Financial Consumer Agency of Canada
2. The Insurance Bureau of Canada, through its member guidelines for brokers
3. Each insurer, through its agency agreement
4. RIBO, through the Code of Conduct made under R.R.O. 1990, Reg. 991

The RIBO Code of Conduct is contained in R.R.O. 1990, Reg. 991 under the Registered Insurance Brokers Act. Agency agreements and industry association guidelines are contractual or voluntary, not the regulatory code.

8. A brokerage principal argues that because a staff member only quotes premiums and never signs applications, no registration is required. Why is this wrong?

1. Registration is required only where commission is paid directly to the individual
2. Quoting and negotiating insurance with the public is broker activity requiring registration
3. Registration attaches to the brokerage, not to individuals
4. Quoting is exempt if the client is later served by a registered broker

The Registered Insurance Brokers Act ties registration to acting as a broker with the public, which includes soliciting, negotiating and quoting general insurance. Both the individual and the firm must be registered.

9. Which classes of insurance fall within RIBO's jurisdiction?

1. Mutual funds and securities
2. Life insurance and segregated funds
3. General insurance, that is property and casualty business
4. Health and dental benefit plans only

RIBO registers general (property and casualty) insurance brokers under the Registered Insurance Brokers Act. Life and accident and sickness agents are licensed by FSRA, and securities are outside insurance regulation entirely.

10. A brokerage firm operating in Ontario must itself be:

1. A member of the Insurance Bureau of Canada
2. Registered only with FSRA
3. Registered with RIBO as a corporation or partnership
4. Incorporated federally

The Registered Insurance Brokers Act requires the firm, as well as each individual broker, to be registered with RIBO. Trade association membership and federal incorporation are irrelevant to the licensing requirement.

11. Which statement about RIBO's inspection powers is accurate?

1. RIBO may inspect only firms that write commercial lines
2. RIBO may only act after a client complaint is filed
3. RIBO may examine a brokerage's books, records and trust accounting
4. RIBO has no power to review financial records

Under the Registered Insurance Brokers Act and R.R.O. 1990, Reg. 991, RIBO may inspect a registrant's records, including trust accounting, on a routine basis and not only in response to a complaint.

12. A broker moves from Ontario to another province and continues to service Ontario clients remotely. What is required?

1. A licence from the broker's new province is sufficient
2. No licence is needed because the broker no longer resides in Ontario
3. The broker must maintain RIBO registration to transact with Ontario clients
4. Only the brokerage needs to remain registered

Registration under the Registered Insurance Brokers Act follows the activity, not the broker's residence. Transacting general insurance with Ontario clients requires RIBO registration regardless of where the broker sits.

13. RIBO's governing body is best described as:

1. A Council, the majority of whom are elected registered brokers, with public appointees
2. A committee of insurance company executives
3. A branch of the Ontario Ministry of Finance
4. An arm of the Insurance Brokers Association of Ontario

The Registered Insurance Brokers Act establishes a Council of elected brokers together with members appointed to represent the public interest. This mixed composition is the hallmark of a self-regulating profession.

14. Which of these is NOT a function of RIBO?

1. Requiring errors and omissions insurance
2. Administering qualification examinations
3. Investigating complaints against brokers
4. Setting the premium a broker may charge a client

Premiums are set by insurers within rates filed with FSRA. RIBO's mandate under the Registered Insurance Brokers Act is qualification, conduct, complaints and financial requirements such as errors and omissions coverage.

15. The Registered Insurance Brokers Act protects the use of which title?

1. Insurance adjuster, which is protected by the Act in the same way
2. Insurance broker, which may not be used by an unregistered person
3. Insurance underwriter, which no person may use without registration
4. Risk manager, which the Act reserves to registrants of the profession

The Registered Insurance Brokers Act restricts the use of the title insurance broker to persons registered with RIBO. Adjusters are licensed under the Insurance Act, while underwriter and risk manager are unprotected job titles.

16. A brokerage advertises that it is approved by RIBO. Why is this improper?

1. RIBO approval statements require prior written consent from FSRA
2. RIBO registers and regulates brokers but does not endorse or approve any brokerage's services
3. Only Level 3 brokers may reference RIBO in advertising
4. Advertising may not mention any regulator

The RIBO Code of Conduct prohibits advertising that misleads. Stating or implying that the regulator endorses a firm's services misrepresents the nature of registration, which is a licensing status and not an endorsement.

17. Registration with RIBO must be renewed:

1. Only when the broker changes employers, at which point the registration is reissued in the new firm's name
2. Periodically, on the schedule set by RIBO, and remains conditional on continuing requirements
3. Once, at the start of a career, after which the registration continues for life
4. Every ten years, provided the registrant has completed the required courses

Under the Registered Insurance Brokers Act and R.R.O. 1990, Reg. 991, registration is renewed on RIBO's cycle and depends on continuing requirements such as errors and omissions coverage and continuing education.

18. A registered broker changes employer from one brokerage to another. What must occur?

1. The former employer must surrender the broker's certificate to FSRA
2. Nothing, because registration is personal and portable without notice
3. The broker must re-sit the qualification examination
4. RIBO must be notified so the broker's registration reflects the new firm and supervision

R.R.O. 1990, Reg. 991 requires that RIBO be advised of changes in employment so that the register is accurate and so that supervision arrangements, which are the responsibility of the principal broker, remain in place.

19. Which document sets out a brokerage's obligations regarding trust accounts and financial standards?

1. The Ontario Automobile Policy, which sets out the standard wording
2. R.R.O. 1990, Reg. 991 under the Registered Insurance Brokers Act
3. O. Reg. 34/10, the Statutory Accident Benefits Schedule made under the Insurance Act
4. The Condominium Act, 1998 and the regulations under it

R.R.O. 1990, Reg. 991 sets the financial and trust accounting requirements for RIBO registrants. OAP 1 and O. Reg. 34/10 are automobile instruments and the Condominium Act governs condominium corporations.

20. Which best explains why Ontario chose self-regulation for general insurance brokers?

1. Self-regulation replaced the need for errors and omissions insurance
2. Self-regulation removes any government oversight of the industry
3. Self-regulation makes brokers employees of the regulator
4. The profession is accountable for competence and conduct standards under statutory oversight

The Registered Insurance Brokers Act delegates day-to-day regulation to the profession while retaining statutory oversight, including public representation on Council. It does not remove government supervision or reduce insurance requirements.

21. Which of the following is registered with RIBO?

1. A personal lines account manager who quotes home and auto policies to the public
2. An underwriter employed by an insurer
3. A claims examiner employed by an insurer
4. An actuary who prices automobile rates

Registration under the Registered Insurance Brokers Act applies to persons who deal in general insurance with the public as brokers. Insurer staff such as underwriters, examiners and actuaries do not act as brokers.

22. A brokerage wishes to use a trade name different from its registered corporate name. What is required?

1. Trade names are prohibited for brokerages
2. Nothing, provided the corporate name appears on invoices and on the policy
3. The trade name must first be approved by the insurer
4. The trade name must be disclosed to and recorded with RIBO

R.R.O. 1990, Reg. 991 requires a brokerage's operating names to be recorded with RIBO so that the public can identify the registrant. Insurer approval is a contractual matter, not a licensing one.

23. Which statement about RIBO qualification examinations is correct?

1. Passing the examination is a condition of registration, not a substitute for it
2. Passing the examination automatically registers the candidate
3. The examination replaces continuing education for the first five years
4. The examination is administered by FSRA

Under the Registered Insurance Brokers Act, the qualification examination is one requirement among several; the candidate must still apply and satisfy RIBO's suitability, supervision and insurance requirements before acting as a broker.

24. A brokerage is sold and the purchaser keeps the same staff and offices. What is the registration consequence?

1. No action is required because the staff are unchanged
2. The new ownership structure must be reported to RIBO and registration adjusted accordingly
3. All individual brokers must re-qualify by examination
4. Only FSRA needs to be advised

R.R.O. 1990, Reg. 991 requires notification of changes in ownership, officers and directors so RIBO can confirm the firm's continuing suitability. Individual registrations remain valid without re-examination.

25. Which best describes the relationship between RIBO and the Insurance Brokers Association of Ontario (IBAO)?

1. RIBO is the regulator; IBAO is a voluntary trade association
2. Both are regulators with concurrent jurisdiction
3. IBAO regulates and RIBO advocates
4. IBAO issues broker licences on RIBO's behalf

RIBO derives its authority from the Registered Insurance Brokers Act; IBAO is a voluntary association that advocates for brokers and provides education. Only RIBO can register or discipline a broker.

26. Which regulator replaced the Financial Services Commission of Ontario in 2019?

1. The Financial Services Regulatory Authority of Ontario (FSRA)
2. The Registered Insurance Brokers of Ontario
3. The Office of the Superintendent of Financial Institutions in Ottawa
4. The Licence Appeal Tribunal

FSRA assumed the regulatory functions of FSCO in 2019 and administers the Insurance Act in Ontario. OSFI is the federal prudential regulator and the Licence Appeal Tribunal is an adjudicative body.

27. Which of the following is licensed by FSRA rather than registered by RIBO?

1. A general insurance broker dealing with the public
2. An insurance agent representing a single insurer
3. A Level 2 broker supervising staff
4. A brokerage corporation placing property business

The Insurance Act, R.S.O. 1990, c. I.8 gives FSRA authority to license insurance agents and adjusters. General insurance brokers and brokerages are registered by RIBO under the Registered Insurance Brokers Act.

28. Which regulator approves automobile insurance rates and risk classification systems in Ontario?

1. The Insurance Bureau of Canada
2. RIBO
3. The Licence Appeal Tribunal
4. FSRA

Automobile rates and risk classification systems must be filed with and approved by FSRA under the Insurance Act. RIBO regulates broker conduct and has no role in rate approval.

29. Which statute is the principal source of insurance contract law in Ontario?

1. The Business Corporations Act
2. The Registered Insurance Brokers Act, R.S.O. 1990, c. R.19
3. The Consumer Protection Act, 2002
4. The Insurance Act, R.S.O. 1990, c. I.8

The Insurance Act, R.S.O. 1990, c. I.8 sets out the statutory conditions, automobile provisions and licensing rules that govern insurance contracts in Ontario.

30. Which body regulates the solvency of federally incorporated insurers operating in Ontario?

1. The Financial Consumer Agency of Canada, which sets solvency standards for insurers
2. FSRA, which reviews the capital held by every insurer licensed in Ontario
3. RIBO, which supervises the solvency of insurers as well as of brokerages
4. The Office of the Superintendent of Financial Institutions (OSFI)

OSFI supervises the solvency of federally regulated insurers, while FSRA licenses insurers to transact in Ontario and regulates market conduct under the Insurance Act. The two roles are complementary, not identical.

31. An insurer wishes to transact insurance in Ontario. What must it hold?

1. A licence issued by FSRA under the Insurance Act
2. A RIBO registration
3. Membership in the General Insurance OmbudService
4. A certificate from the Licence Appeal Tribunal in Toronto

Section 42 and following of the Insurance Act require an insurer to be licensed by FSRA before transacting insurance in Ontario. Ombudservice participation is a market conduct expectation, not a licence.

32. A client asks whether their policy is protected if their insurer becomes insolvent. What is the correct answer for a property and casualty policy?

1. There is no protection of any kind
2. FSRA guarantees payment of all claims in full
3. RIBO indemnifies policyholders from a compensation fund
4. The Property and Casualty Insurance Compensation Corporation provides limited protection

Source: Insurance Act, R.S.O. 1990, c. I.8 (licensing of insurers, agents and adjusters). PACICC is the industry-funded compensation body for property and casualty policyholders in Canada, providing limited protection subject to its own caps. Neither FSRA nor RIBO guarantees an insolvent insurer's claims.

33. Which tribunal hears disputes about statutory accident benefits in Ontario?

1. The Ontario Superior Court of Justice
2. The Licence Appeal Tribunal (LAT)
3. FSRA's Complaints Division
4. The General Insurance OmbudService

Since 2016, disputes between an insured person and an insurer about entitlement to benefits under the SABS, O. Reg. 34/10, are heard by the Licence Appeal Tribunal rather than by a court.

34. A consumer is dissatisfied with an insurer's handling of a homeowner claim after exhausting the insurer's internal complaint process. Where should they be directed?

1. RIBO's Discipline Committee
2. The Licence Appeal Tribunal, which hears benefit disputes
3. The General Insurance OmbudService
4. The Motor Vehicle Accident Claims Fund

Source: Insurance Act, R.S.O. 1990, c. I.8 (licensing of insurers, agents and adjusters). The General Insurance OmbudService handles unresolved consumer complaints against property and casualty insurers. The Licence Appeal Tribunal deals with accident benefits and RIBO deals with broker conduct.

35. An insurance adjuster in Ontario is licensed under:

1. The Compulsory Automobile Insurance Act
2. The Registered Insurance Brokers Act, by RIBO
3. The Insurance Act, by FSRA
4. No licensing regime

The Insurance Act, R.S.O. 1990, c. I.8 requires adjusters to be licensed by FSRA. RIBO has no jurisdiction over adjusters, although a broker who adjusts losses for a fee may require an adjuster's licence.