Registered Insurance Brokers of Ontario (RIBO) Practice Exam

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Prepare for the Registered Insurance Brokers of Ontario Exam with comprehensive quizzes, flashcards, and expert tips. Build your confidence and knowledge to succeed in your licensing journey!

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Following an automobile accident in Ontario, with both parties insured in Ontario, one driver is found 100% liable. Which statement is TRUE?

Damage to the non-liable driver's car will be covered under his own policy subject to deductible
The non-liable driver's family will be compensated under his policy initially
The liable driver will not be compensated for injuries due to being at fault
The insurer of the non-liable driver's vehicle can subrogate against the other insurer

The correct answer is: The non-liable driver's family will be compensated under his policy initially

If one driver is found 100% liable for an automobile accident in Ontario and both parties are insured in Ontario, the non-liable driver's family will initially be compensated under his policy. This means that the non-liable driver's insurance company will cover the costs for any injuries sustained by the driver or their family due to the accident. This is because in Ontario, the insurance policy follows the vehicle, not the driver. Option A is incorrect because the damage to the non-liable driver's car will likely be covered by the liable driver's insurance company. Option C is incorrect because the liable driver's insurance will still provide compensation for injuries, but at fault collisions can result in higher premiums. Option D is incorrect because subrogation (the process of one insurer seeking reimbursement from another insurer) typically only happens when both parties are insured by different companies.