Registered Insurance Brokers of Ontario (RIBO) Practice Exam

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Prepare for the Registered Insurance Brokers of Ontario Test. Study with comprehensive flashcards and multiple choice questions, each question provides hints and detailed explanations. Ace your exam with confidence!

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Practice this question and more.

A client phones to tell you he has brought a high-end stereo system costing $5,000, which has been installed in his car. What should you tell him?

Be sure to always lock the car, as there is no coverage if the system costing $5,000 is stolen when the car is unlocked.
There is no coverage on the system without an approved security system in the car.
No further action is needed. The new system is automatically covered under his O.A.P. 1 Owners's Form as a part of the car.
To provide you with a copy of the invoice so you can have his O.A.P. 1 Owner's Form endorsed to cover its full value.

The correct answer is: To provide you with a copy of the invoice so you can have his O.A.P. 1 Owner's Form endorsed to cover its full value.

The correct answer is D. You should provide your client with a copy of the invoice so that the O.A.P. 1 Owner's Form can be endorsed to cover the full value of the high-end stereo system. This is necessary because the standard coverage for a car does not automatically include expensive additional equipment like a high-end stereo system. Options A and B are incorrect because they suggest that there is no coverage at all for the stereo system, which is not true if the form is properly endorsed. Option C is also incorrect because although the system is automatically covered, it is not covered for its full value unless the O.A.P. 1 Owner's Form is endorsed. Therefore, it is important to take the necessary steps to properly insure the expensive stereo system for its full value.