Ace the 2026 RIBO Exam – Boost Your Insurance Broker Swagger!

The Facility Association is not a reinsurance device, as described in option B. Reinsurance is a way for insurers to protect themselves against large losses by transferring a portion of their risk to other insurers.

The Facility Association is also not an insurance pool subscribed to by all automobile insurance carriers, as described in option C. An insurance pool is a group of insurers who join together to share risk.

It is also not the provincial government insurance office, as described in option D. While the Facility Association is regulated by provincial governments, it is not directly responsible for accepting applications from automobile owners.

The correct answer, option C, is the most accurate description of the Facility Association. It is a pool subscribed to by all automobile insurance carriers, but it specifically shares the writing of risks that are not commonly covered in the regular market. This allows for high-risk drivers or those who have been