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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What percentage of gross income does the basic Income Replacement Benefit under OAP1 Owner's Form typically amount to?

The correct answer is: 70%

The correct answer is 70%. The basic Income Replacement Benefit under OAP1, which is Ontario's Automobile Policy, is designed to provide compensation for lost income due to an automobile accident. This benefit typically replaces a percentage of a person's gross income, ensuring that individuals have financial support while they recover from their injuries. The choice of 70% is based on the policy's structure, which aims to balance providing adequate income support without fully compensating for lost earnings, as this could discourage individuals from returning to work. The percentage of 70% has been established in the insurance framework as a standard to facilitate recovery while also managing insurance costs. Other percentages offered in the options, while they may represent various coverage options in different contexts, do not align with the standard benefit percentage outlined in OAP1.