Registered Insurance Brokers of Ontario (RIBO) Practice Exam

How must temporary insurance be cancelled?

1. Through a formal letter

2. In the same way as a similar policy type

3. By notifying the insurance regulator

4. By contacting the insurance broker only

The correct answer is: In the same way as a similar policy type

The correct approach for cancelling temporary insurance is to follow the same procedure that applies to cancelling a similar policy type. This is grounded in the idea that temporary insurance is essentially a form of insurance with a specific duration, and its cancellation should align with the established practices for other insurance policies in similar circumstances. When cancelling an insurance policy, the requirements may vary based on the duration and type of the policy. Typically, the cancellation process might include providing written notice or adhering to specific protocols that are already in place for the corresponding type of coverage, ensuring consistency and clarity in the process. This alignment helps streamline operations and maintain customer understanding and trust. The other methods mentioned, such as a formal letter, notifying the insurance regulator, or contacting the broker alone, may not encompass the full scope of what is required or could unnecessarily complicate the cancellation process. Therefore, adhering to the standard procedure for cancelling a similar policy is the most effective and recognized method for handling the cancellation of temporary insurance.