Registered Insurance Brokers of Ontario (RIBO) Practice Exam

What is a broker/agent responsible for?

1. Writing any type of insurance policy

2. Advising clients on every class of business

3. Writing only those classes of business acceptable to their insurer

4. Managing claims for their clients

The correct answer is: Writing only those classes of business acceptable to their insurer

The correct answer highlights the broker's responsibility in ensuring that they only write insurance policies for the classes of business that are specifically accepted by their insurer. This responsibility is crucial as it ensures compliance with the insurers' guidelines and protects both the broker and their clients from potential issues related to unauthorized coverage. By limiting their scope to what is acceptable, brokers maintain a level of professionalism and integrity in their practices. Additionally, this approach helps ensure that clients receive coverage that meets the insurer's underwriting criteria, ultimately leading to more reliable and effective coverage options. The other options suggest broader responsibilities that may not align with the specific training and licensing that brokers hold. For instance, writing any type of insurance policy or advising on every class of business may not be feasible due to varying expertise and regulatory guidelines. Managing claims is typically a function aligned more with adjusters rather than the role of brokers, reinforcing the importance of focusing only on the classes of business they are authorized to write.