Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Which of the following statements is FALSE?

1. Comprehensive coverage pays for damage caused by theft of the automobile by an employee of the insured whose duties may include driving an automobile.

2. Uninsured Automobile limit coverage for property damage is $25,000 per occurrence.

3. The caregiver benefit pays up to $250 for the first dependant in need of care.

4. For DCPD to apply, an accident must occur in Ontario, and there must be at least two vehicles involved, insured with a licensed insurer in Ontario, or an insurer outside Ontario who has signed an agreement to be bound by the DCPD agreement.

The correct answer is: Comprehensive coverage pays for damage caused by theft of the automobile by an employee of the insured whose duties may include driving an automobile.

The statement regarding comprehensive coverage being responsible for damage caused by the theft of the automobile by an employee of the insured is misleading and thus represents a false assertion. Comprehensive coverage is designed to protect against a range of risks, such as theft, vandalism, or natural disasters. However, it typically does not extend to cover theft or damage caused by individuals who are considered to be in the course of their employment, as this may fall under exclusions within many standard insurance policies. This is due to the notion of vicarious liability, where an employer is not held liable for the crimes of an employee committed while fulfilling their job duties. In contrast, the other statements accurately reflect the details of insurance coverages: The limit for Uninsured Automobile coverage for property damage is indeed commonly set at $25,000 per occurrence, which is a standard amount within many insurance policies, ensuring that policyholders are aware of the limits when dealing with uninsured motorists. The caregiver benefit, which is typically included within accident benefits, provides financial assistance for those who need care due to an accident. In this case, the correct amount for the first dependant in need of care aligns with policy terms, making it a true statement. For Direct Compensation-Property Damage (DCPD) to