Registered Insurance Brokers of Ontario (RIBO) Practice Exam

What restriction applies to individuals who qualify for registration as insurance brokers under supervision?

1. They can act as sole proprietors

2. They can control trust funds

3. They may not hold the title of "Principal Broker"

4. They can manage claims independently

The correct answer is: They may not hold the title of "Principal Broker"

The correct response highlights a critical aspect of the regulatory framework surrounding insurance brokers. Individuals who qualify for registration as insurance brokers under supervision are indeed restricted from holding the title of "Principal Broker." This restriction exists because the role of Principal Broker entails a higher level of responsibility and autonomy, which includes overseeing the practices of other brokers and managing critical aspects of the brokerage. Since these individuals are still under supervision, they have not yet attained the full qualifications or experience required to independently manage a brokerage or act in a principal role. The intention behind this restriction is to ensure that less experienced brokers receive the guidance necessary to develop their skills and adhere to the regulatory standards required in the insurance industry. In contrast, the other choices indicate roles or activities that require a higher level of authority or responsibility than what supervised registration allows. Therefore, these roles are not appropriate for individuals who are still under supervision, ensuring that the integrity and professional standards of the insurance brokerage are maintained.