Free RIBO practice
questions. Answers explained.

A. Disclose the conflict of interest in writing to the prospective client.

The ownership connection creates a potential conflict that the code requires Marc to disclose in writing to the prospective client. Insurer approval is not a substitute, and disclosure cannot wait for the client to ask. The stated rule does not itself require automatic referral elsewhere.

C. Short rate, with handling costs retained.

When the insured cancels, section 1.7.1 applies short rate, which the policy defines as including the insurer's handling costs. The proportionate basis is real, but it applies only when the insurer cancels under section 1.7.2. Option B also fails because a minimum premium shown on the Certificate is not refunded.

D. The concurrent overland water triggers the exclusion.

Overland water contributed to the same loss, which triggers the supplied sewer-backup exclusion. The clause does not use equal sharing, the largest source or first entry as its test. Other water endorsements use different causation terms; this result follows the stated wording.

B. $60,000.

Required insurance is 80% of $500,000, or $400,000. The client carried $300,000, which is 75% of the required amount. Applying that ratio to the $80,000 loss gives $60,000. The co-insurance percentage determines required insurance; it is not itself the percentage of the loss payable.

A. His condition fails the stated stability test.

The dose increase falls inside the stated ninety-day period, so the condition does not meet this definition. Accurate disclosure and an older diagnosis do not change that calculation. This answers the definition question, not whether a claim must be denied: the accepted policy terms and applicable Ontario law determine whether an exclusion is enforceable.