Registered Insurance Brokers of Ontario (RIBO) Practice Exam

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Prepare for the Registered Insurance Brokers of Ontario Exam with comprehensive quizzes, flashcards, and expert tips. Build your confidence and knowledge to succeed in your licensing journey!

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Which of the following best describes Direct Compensation for Property Damage (DCPD)?

A system identifying fault across all accidents
A no-fault coverage for vehicle damage
A liability coverage requirement
A system exclusive to personal vehicles

The correct answer is: A no-fault coverage for vehicle damage

The choice indicating that Direct Compensation for Property Damage (DCPD) is a no-fault coverage for vehicle damage is accurate because DCPD was designed to allow insured drivers to recover their own damages directly from their own insurer, regardless of who was at fault in the accident. This approach streamlines the claims process, as it removes the need for determining fault before compensation is awarded for vehicle damage. DCPD primarily assists drivers in covering costs related to vehicle repairs and damages, further enhancing the efficiency of insurance payouts. Under this system, if you are involved in an accident with another vehicle, your own insurer handles your claim, maintaining a focus on quick resolution without the delays that can occur when establishing fault. The other options suggest aspects that do not accurately capture the essence of DCPD. For instance, identifying fault across all accidents does not align with the no-fault principle of DCPD, while liabilities and exclusivities discussed in the other options do not reflect the comprehensive nature of DCPD as a vehicle damage coverage mechanism.