Registered Insurance Brokers of Ontario (RIBO) Practice Exam

How many years of past claims experience must be disclosed on an automobile application?

1. 3 years for the applicant only

2. 6 years for the applicant and others in the same household

3. 5 years for the applicant and 3 for others

4. No past claims experience is required

The correct answer is: 6 years for the applicant and others in the same household

The correct answer highlights the requirement for disclosing past claims experience on an automobile insurance application, which is crucial for determining the risk profile of the applicant. Specifically, in Ontario, applicants must disclose their claims history for the past six years, along with the claims of all individuals residing in the same household. This information is essential as it helps insurance companies assess risk and establish premiums based on the claims history of all relevant parties, not just the primary applicant. A more limited disclosure period, such as three years for just the applicant, would not provide a comprehensive view of the household’s risk, while other options that suggest varied or no disclosures fail to reflect the standard practices in the industry. Consistent reporting on claims from the past six years for both the applicant and other household members ensures more accurate underwriting processes.