Registered Insurance Brokers of Ontario (RIBO) Practice Exam

In terms of property coverage, a broad form generally means:

1. Limited coverage for contents

2. All risks coverage

3. Coverage for specified perils only

4. No coverage for contents

The correct answer is: All risks coverage

The concept of "broad form" in terms of property coverage typically refers to a policy that offers broader protection than a standard form. Specifically, it generally includes "all risks" coverage, which means it covers a wide array of potential losses and damages to property, barring only specific exclusions. This contrasts with forms that limit coverage to specified perils, which only cover losses from explicitly listed hazards. In a broad form, the intent is to provide comprehensive coverage for both the building and the contents within it, as long as the cause of loss is not explicitly excluded by the policy. Consequently, this form is considered more advantageous for property owners seeking extensive protection against a variety of risks. The other options, while addressing different types of coverage, do not accurately reflect the essence of broad form coverage. Limited coverage for contents suggests a restriction that is not characteristic of broad form, while coverage for specified perils only directly contradicts the nature of broad form by limiting the causes of loss. Lastly, indicating no coverage for contents misrepresents what broad form policies typically encompass, as they usually include contents up to certain limits.