Registered Insurance Brokers of Ontario (RIBO) Practice Exam

In the Additional Agreements of the Insurer, Own Damage, the insurer agrees to waive subrogation against:

1. A neighbour driving the auto with the insured's consent

2. A neighbour who had care or custody of the auto for repair purposes

3. Anyone, other than the named insured, who has breached any condition of the policy

4. Someone who was storing the auto in a parking garage

The correct answer is: A neighbour driving the auto with the insured's consent

The correct option is A because the insurer agrees to waive subrogation, which is the right to seek reimbursement from another party who is responsible for a loss. In this case, the insurer waives their right to seek reimbursement from a neighbour who is driving the insured's car with their consent. This means that if the neighbour is at fault for causing damage to the car, the insurer will not try to recover the costs from them. Option B is incorrect because it mentions a neighbour who had care or custody of the auto for repair purposes. This means that the neighbour had the car in their possession for the purpose of fixing it, but it does not mention anything about the neighbour using the car with the insured's consent. Therefore, this option does not fall under the terms of the insurer's agreement to waive subrogation. Option C is incorrect because it mentions anyone, other than the named insured