Registered Insurance Brokers of Ontario (RIBO) Practice Exam

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What must a member do if placing insurance with an unlicensed insurer in Ontario?

Inform the insurer of the decision.
Obtain written consent from the insured member of the public.
Notify RIBO of the action.
Return the policy to the insured.

The correct answer is: Obtain written consent from the insured member of the public.

The correct answer is to obtain written consent from the insured member of the public. In Ontario, it is a requirement for insurance brokers to ensure that their clients are well informed about the implications of dealing with unlicensed insurers. When placing insurance with such insurers, brokers must secure the understanding and consent of their clients. This step is crucial to maintain transparency and ensure that clients understand the potential risks associated with unlicensed insurance providers, which may include challenges in claim processing or lack of regulatory oversight. Informing the insurer about the decision, notifying RIBO, or returning the policy to the insured are important actions in certain contexts, but they do not address the fundamental requirement of obtaining consent from the client when engaging with an unlicensed insurer.