Registered Insurance Brokers of Ontario (RIBO) Practice Exam

If a driver is found to not have insurance, what is the potential impact on claims made for an accident?

1. The claim will be fully covered

2. The claim may be denied

3. The insured can still claim against their policy

4. Claims against uninsured drivers are always successful

The correct answer is: The claim may be denied

When a driver is found to not have insurance, it can significantly impact the resolution of claims made for an accident. The correct response indicates that the claim may be denied. This is because insurance policies typically require that drivers hold valid insurance coverage at the time of the accident to qualify for benefits. If a driver does not have insurance, they may be held liable for damages, and as a result, their claims could be rejected either by their own insurer or the other party's insurer, depending on the circumstances of the incident. Many jurisdictions have laws that require drivers to maintain a minimum level of insurance coverage, and driving without insurance can also result in legal penalties such as fines or license suspensions. Therefore, if a driver involved in an accident lacks insurance, the potential for a successful claim diminishes, leading to the possibility of denial based on the absence of coverage. In contrast, the other options suggest outcomes that do not align with standard insurance practices. For instance, a fully covered claim would imply that the driver’s financial protection is intact despite not having insurance, which contradicts policy conditions. The notion that the insured can still claim against their policy suggests there would be assistance from their insurance provider, which typically would not happen if there is no active policy