Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Which type of insurance would typically require you to have evidence like a policy or binder?

1. Health Insurance

2. Liability Insurance

3. Property Insurance

4. Life Insurance

The correct answer is: Property Insurance

The requirement for evidence like a policy or binder is particularly relevant in the context of property insurance. Property insurance provides coverage for physical assets, such as homes, buildings, and personal property, which necessitates a formalized agreement detailing the terms of coverage, premiums, and specifics about what is insured. A policy or binder serves as proof of the insurance coverage secured, which is crucial during the underwriting process, or when making a claim. These documents outline the exact conditions and coverage limits agreed upon between the insurer and the policyholder. Without them, it can be challenging to establish proof of coverage for property losses. In contrast, while health, liability, and life insurance also have their own documentation processes, the nature of property insurance—dealing specifically with tangible items—often makes the need for concrete evidence more pronounced, especially in real estate transactions and asset management.