Registered Insurance Brokers of Ontario (RIBO) Practice Exam

What is the requirement for an individual who solicits or negotiates a contract of insurance?

1. They must be registered as an insurance broker.

2. They must work only under supervision.

3. They do not need any registration.

4. They can operate if they do not receive compensation.

The correct answer is: They must be registered as an insurance broker.

The correct answer highlights that individuals soliciting or negotiating contracts of insurance are required to be registered as insurance brokers. This requirement is in place to ensure that these individuals are knowledgeable about the insurance products they are handling and comply with the regulations set forth by governing bodies. Registration signifies that the broker has undergone the necessary training and adheres to ethical standards mandated by legislation, protecting consumers from potential fraud or misinformation. The other options do not meet the legal requirements for operating in the insurance field. For instance, working under supervision does not eliminate the need for registration, as one must still be officially recognized to perform such duties. Similarly, unregistered individuals cannot engage in these activities, irrespective of whether they receive compensation. Lastly, the lack of registration is not permissible, demonstrating that understanding the insurance domain and maintaining professional standards is crucial for those involved in the industry. Overall, the necessity of being a registered insurance broker emphasizes the importance of professionalism and accountability in the practice of insurance solicitation and negotiation.