Registered Insurance Brokers of Ontario (RIBO) Practice Exam

When must an insurer provide written notice of intent to replace damaged property under Fire Statutory conditions?

1. Within 15 days of receiving proof of loss

2. Within 30 days of receiving proof of loss

3. Within 60 days of receiving proof of loss

4. No written notice is required

The correct answer is: Within 30 days of receiving proof of loss

The requirement for an insurer to provide written notice of intent to replace damaged property under Fire Statutory conditions is established to ensure that the insured is kept informed about the claims process. In this context, the insurer must notify the policyholder in writing within 30 days after receiving proof of loss. This 30-day timeframe serves a critical role in managing expectations for the policyholder, allowing them to understand the insurer's plans regarding replacement. It is a protective measure built into the regulatory framework, reflecting the importance of timely communication in the insurance process. The options provided suggest different notice periods, yet only the 30-day period aligns with the statutory requirements. Understanding this timeframe helps ensure that both insurers and insured individuals can navigate the claims process effectively, promoting transparency and accountability within the industry.