RIBO 20 Question Re-test

• Registered Insurance Brokers of Ontario.
• - self-governing
• - for general insurance brokers

• - insurance brokers in Ontario were granted self-regulation
• - government legislation entitled the Registered Insurance Brokers of Ontario Act
• - this legislation protects the interests of insurance consumers

• RIBO regulates the following of all general insurance brokers:
• - licensing
• - professional competence
• - ethical conduct
• - insurance related financial obligations

• - RIBO investigates complaints
• - has the authority to suspend or restrict the licenses of individual brokers or brokerage firms

• Suspend or restrict the licenses of:
• - individual brokers
• - brokerage firms

• - twice annually
• - done for all brokerages
• - ensures compliance with the financial requirements of the Act
• - **Form 1 Position Report**

• - 13 people
• - 9 elected brokers & 4 public members appointed by the Lieutenant governor in council

- the council acts like a Board of Directors, same as any business company

• - supervising the management of the corporation
• - setting policies and guidelines

Q-C-D (Quiet Cat Dog)

• 1. Qualification/Registration Committee
• 2. Complaints Committee
• 3. Discipline Committee

• - set and review qualification standards
• - ensure compliance of standards

• - investigates misconduct
• - determines if allegations warrant referral to Discipline Committee

• - conducts hearings into professional misconduct by brokers
• - similar to a trial in civil court
• - decides if innocent or guilty
• - if found guilty, may impose an appropriate penalty from reprimand to license suspension

Q-C-MAC (Quiet Cat Mac)

• 1. Qualification & Registration Dept
• 2. Complaints & Investigation Dept
• 3. Marketing & Communication Dept
• 4. Administration & Finance Dept
• 5. Corporation Legal Services Dept

• - financial matters
• - clerical & office services
• - personnel
• - technology

• - monitoring broker conduct, financial position, & marketing plans
• - spot checks (pre-arranged visits) every 3-5 years to review books
• - hears complaints from brokers & public
• - most complaints handled over the phone (90%)
• - more serious complaints are assigned to an investigator
• - when enough evidence, a report is given to Complaints Committee for review
• - Complaints Committee may refer matter to Discipline Committee (tribunal hearing & testimony under oath)

• - provides legal services to council, committees & all dept's
• - most services are provided to the 3 main committees
• - reports to General Manager
• - provides council to any RIBO member on the RIBO Act

• - all marketing materials
• - newsletters
• - meet with brokers in the province (usually 10 locations across province) to discuss issues in member forums
• - responsible for Annual Meeting and liaison with the media

• - administers the Q&R requirements of the RIBO Act
• - operational support to the Q&R committee
• - reviews all applications for brokers
• - reviews renewal applications for education compliance
• - responsible for broker exams

• - act or aid in any manner in soliciting or procuring the making of any contract of insurance or reinsurance
• - whether or not he has an agreement with insurers allowing him to bind coverage or countersign insurance documents on behalf of insurers
• - a broker my also provide risk management services including claims assistance where needed

1. No person shall act as an insurance broker unless that person is a registered insurance broker under this act (does not include clerical people)

2. A broker shall provide a policy or certificate of coverage to the client within 21 days

3. Fees for services are allowed providing that the fee has been disclosed to client (amount of the fee, portion of premium retained, total premium)

21 days

GCGC

• 1. Give knowledgeable advice on insurance
• 2. Counsel on risk management
• 3. Give adequate knowledge of risk to insurer
• 4. Co-operative with insurer

• - PREMIUMS received from clients for policies to be issued must be deposited into the trust account
• - no later than 3 days after money received
• - COMMISSION may be withdrawn from the trust account to the general account

• - brokers are fiduciary in nature
• - a person or firm who occupies a position of special trust or confidence in handling or supervising the affairs or funds of others (ie. banks, brokers, barristers)

• - If the inquiry can't be solved via telephone then a written complaint is required and the broker is notified
• - the broker has 2 weeks to respond in writing to RIBO
• - this is reviewed to determine if there is a violation of the Act

• - if there is a violation, the matter is brought before a complaints committee meeting
• - if they believe an offense has been committed they direct the matter to the Discipline Committee
• - they have the power to revoke, place conditions on, or impose a fine payable to the Treasurer of Ontario

• - over the age of majority (18yrs)
• - of good character
• - no past legal charges
• - has not had a license under the Insurance Act that was refused or revoked
• - meets the education & experience requirement
• - complies with regulations of this Act
• - only business is of an insurance broker including the sale of life insurance and any other business approved by RIBO

- September 30th of every year

- within 30 days of change taking place

• - not unless client is informed & written consent given
• - insurer not subject to Insurance Act Reg's
• - claims payments may be more difficult
• - no AUTO insurance to be  place with unlicensed insurer unless it's in excess than the minimum required
• - must file quarterly with the Superintendent of Insurance particulars of all insurance policies with unlicensed insurers

• - marketable securities
• - stock certificates
• - bonds
• - debentures
• - treasury bills or other negotiable instruments

• - $2500 sole proprietorship
• - $5000 partnership or corporation

- $1,000,000

- $100,000

• - yes, if it is disclosed before the insurance is placed and is shown as a service fee
• - no undisclosed fees or charges
• - no rebating

• - deal with public
• - aid in obtaining insurance or reinsurance
• - provide risk management services
• - provide insurance consulting services

- refer to 991-15 - Misconduct item #12

• - be candid and honest
• - discharge duties with integrity
• - be conscientious, diligent and efficient
• - hold information given in confidence
• - take care of property entrusted to them by clients (policies)
• - no conflict of interest with other occupations
• - no undisclosed charges or fees to be made
• - encourage public respect for the insurance business
• - make services available to the public
• - maintain integrity of profession

• - false advertising
• - unequal comparison of policies
• - monetary inducement to buy a policy
• - rebating
• - harassing prospective clients
• - carrying on business in a different name other than that registered under
• -conduct that results in unfair or delayed claims settlements
• - failing to comply with the RIB Act
• - acting as an insurance broker when not a broker
• - failing to meet code of conduct
• - any convictions under the Criminal Code or Insurance Act

• - individual who has the authority to act on behalf of the firm
• - complies with all RIBO requirements
• - designated may be held personally form the improper acts of the firm or employees
• - responsible to see that all trust accounts, books, records are maintained with reg's

- open and operate a trust account

- set and agreed upon between each insurance company and the broker office

- deal directly with the public with regards to soliciting, negotiation, procuring or making of any contract or insurance on behalf of insurers

- a form approved by the Superintendent

- obtain the written consent of the member of the public whom the broker services to the effect that they are aware their coverage will be carried by an unlicensed insurer in the province

- Acts in any manner in soliciting, negotiating, or procuring the making of any contract of insurance or reinsurance

- $1,000,000 and $100,000

- IBAO: Insurance Brokers Association of Ontario

- On behalf of another negotiate an insurance contract and receive compensation

- finders fees can be paid but only to persons who are registered as insurance intermediaries

- RIBO within 30 days of the change

- by jeopardizing the member's integrity, independence or competence

- you may not act as a sole proprietor, control trust funds, or act as a designated individual

- discuss with the general public their insurance needs

- represent both the client and the insurer at the same time

- the use of any practice or conduct that results in unreasonable or resistance to the fair adjustment of a claim

- you have a quote from your insurance company for $1000. The competition quotes $750 and you decide you really want the business so you match the reduced premium and contribute $250 yourself

- Charging an insured less than the premium shown on the policy

- a self-regulatory body concerned with the operation of insurance brokers

- The protection of the interests of brokers in Ontario

- must notify RIBO if any information on the original application form registration or renewal has become obsolete, including a change in employer, and file a notice correcting that information within 30 days of the change

- you may not act as a sole proprietor, nor be a "Principal Broker" as the term is used in the regulation, nor may you control trust funds

- to maintain a Trust Account for all trust money received

- deals directly with the public and receives compensation

- 21 days

- solicit insurance from members of the public anywhere in Ontario

- for compensation, provides risk management and loss prevention services of behalf of another

- Using an illustration, circulation or memorandum to represent the terms, benefits or advantages of any policy or contract of insurance

- one who holds money or property in trust