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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Which statement is FALSE pertaining to terminating an Automobile Policy?

A. The insurer is required to provide 15 days written notice by registered mail.
B. The insurer can terminate coverage by providing 5 days written notice which is personally hand delivered.
C. The insured can terminate coverage anytime subject to returned premium on a pro-rate basis.
D. The insurer must give the insured 30 days notice by registered mail when cancelling for the first non payment of premium during the policy term.

The correct answer is: C. The insured can terminate coverage anytime subject to returned premium on a pro-rate basis.

The correct statement is actually D. The insurer is required to provide 15 days written notice by registered mail. Option A is incorrect because the insurer is required to provide a 30 day notice for cancellation due to non-payment. Option B is incorrect because the insurer must provide written notice, not personally hand deliver it. Option C is incorrect because the insured cannot terminate coverage anytime, it must be at the end of the policy term and no coverage will be provided during that time. Therefore, option C is the false statement.