Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Which entity can determine the adequacy of coverage and premium adjustments in insurance?

1. Public Adjuster

2. Insurance Agent

3. Insurance Underwriter

4. Insurance Assessor

The correct answer is: Insurance Underwriter

The correct answer is the insurance underwriter. An insurance underwriter plays a crucial role in the insurance industry by evaluating risks and determining the terms and pricing of insurance policies. They assess various factors, including the applicant's risk profile and the overall risk associated with insuring that individual or entity. By analyzing these elements, underwriters can determine the adequacy of coverage and make necessary premium adjustments to ensure that the insurance product is both appropriate for the insured and financially viable for the insurer. Their expertise in risk management allows them to set premiums that reflect the level of risk involved, ensuring that the insurer can cover potential claims while remaining competitive in the market. Other roles, such as public adjusters, insurance agents, and insurance assessors, have distinct responsibilities that do not primarily focus on the determination of coverage adequacy and premium adjustments. While public adjusters advocate for policyholders' claims, insurance agents typically sell and service insurance products, and assessors evaluate property damage for claims purposes, none of them are primarily responsible for the underwriting process and making decisions on coverage and premiums.