Registered Insurance Brokers of Ontario (RIBO) Practice Exam

True or False: Statutory Conditions can be altered at the request of the insured to provide less than the minimum legislated coverage available.

1. True

2. False

3. Depends on the insurer

4. Only under special circumstances

The correct answer is: False

The correct answer is that statutory conditions cannot be altered to provide less than the minimum legislated coverage available. Statutory conditions are established by law and are designed to ensure that insurance policies provide a baseline level of protection for policyholders. These conditions are mandatory and serve to uphold the standards of the insurance contract. Since these conditions are regulated, they protect the interests of consumers by preventing insurers from offering policies with inadequate coverage that may not meet the basic legal requirements. Altering these conditions to provide less coverage would undermine this protective framework, which is why such modifications are not permissible. The other possible answers imply varying degrees of flexibility in changing statutory conditions, but the fundamental principle is that they are legally defined and must be adhered to strictly, ensuring all policyholders receive at least the minimum protections required by law.