Registered Insurance Brokers of Ontario (RIBO) Practice Exam

When insuring a snowmobile, which option is recommended?

1. Through general liability insurance

2. Through an OAP 1 Owner's Form for comprehensive coverage

3. With a separate policy specific to snowmobiles

4. By adding it to a homeowner's insurance policy

The correct answer is: Through an OAP 1 Owner's Form for comprehensive coverage

The recommended option for insuring a snowmobile is to use the OAP 1 Owner's Form for comprehensive coverage. This form offers specialized coverage that includes protection for the snowmobile against various risks, such as theft, damage while in storage, and liability while operating the vehicle. Using the OAP 1 form is essential because it provides comprehensive coverage tailored to motorized recreational vehicles, ensuring that the unique risks associated with snowmobiles are adequately covered. This approach not only meets regulatory requirements but also aligns with best practices in risk management. Other options may not provide the same level of protection. For instance, general liability insurance typically covers bodily injury and property damage liability but does not cover the vehicle itself. Insuring through a separate policy specific to snowmobiles may offer dedicated coverage, but the OAP 1 form is specifically designed to encompass many aspects of ownership that could be overlooked in a general policy. Adding the snowmobile to a homeowner's policy is generally not advisable because homeowner’s policies usually do not extend coverage to motorized vehicles that are not situated on the insured premises or do not meet specific criteria. Thus, the OAP 1 Owner's Form is the most comprehensive and recommended option for insuring a snowmobile.