Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Newly acquired automobiles are automatically covered under the O.A.P. 1 Owner's Form provided the insurer is notified within:

1. As soon as practicable

2. 14 days

3. 7 days

4. 21 days

The correct answer is: 14 days

Newly acquired automobiles must be reported to the insurer within 14 days in order to be automatically covered under the O.A.P. 1 Owner's Form. This means that if the automobile is not reported within this timeframe, it will not be covered under the policy. Reporting the automobile within 14 days allows the insurer to properly evaluate the risk and adjust the policy accordingly. Option A (As soon as practicable) is too vague and does not specify a specific timeframe, making it difficult for the insurer to properly assess the risk in a timely manner. Options C (7 days) and D (21 days) are both outside the specified timeframe, making them incorrect choices. It is important to report the acquisition of a new automobile to the insurer as soon as possible to ensure coverage under the policy.