Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Under Loss Of Use due to theft, when does reimbursement end?

1. The date of the completion of the repairs or replacement.

2. The date the Insurer tenders settlement.

3. Either the completion of repairs/replacement or the tender of settlement, whichever occurs first.

4. The expiry date of the policy.

The correct answer is: Either the completion of repairs/replacement or the tender of settlement, whichever occurs first.

Loss of Use due to theft coverage provides reimbursement for expenses incurred when a policyholder's property is stolen and they are unable to use it. Option A may seem like the correct choice, but it is not always the case. Repairs and replacement may take longer than expected, thus extending the reimbursement period. Option B is incorrect because the insurer's settlement offer may not cover the full cost of repairs or replacement. Option D is also incorrect because the expiry date of the policy does not necessarily coincide with the completion of repairs or tender of settlement. Therefore, option C is the most accurate answer as it covers both possible scenarios and ensures that reimbursement ends once the policyholder has received sufficient compensation for their loss of use due to theft.