Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Is a Transfer and Consent Agreement considered part of an insurance policy?

1. Yes, it is a standard feature

2. No, it is separate from the contract

3. Yes, but only for certain policies

4. No, but it can be included upon request

The correct answer is: No, it is separate from the contract

A Transfer and Consent Agreement is considered separate from an insurance policy itself. This type of agreement typically pertains to the transfer of rights or interests in an insurance policy or the consent required by an insurer for certain changes to be made under the terms of the policy. In most cases, an insurance policy functions as its own standalone document that lays out the rights, obligations, and coverage details between the insurer and the insured. A Transfer and Consent Agreement, on the other hand, is not inherently part of this primary contract but is an ancillary agreement that might be necessary in specific situations, such as when a policyholder wants to transfer their interests to another party. Thus, it exists outside the main terms and conditions outlined in the insurance policy itself. The other options suggest scenarios where the Transfer and Consent Agreement is treated as part of the insurance policy, either as a standard feature, only for certain policies, or included upon request, which does not reflect its nature as a separate legal instrument contingent on specific situations.