Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Which type of insurance typically includes statutory conditions?

1. Auto insurance

2. Fire insurance

3. Life insurance

4. Travel insurance

The correct answer is: Fire insurance

The correct answer is fire insurance, as it typically includes statutory conditions mandated by the law. These statutory conditions are designed to protect the interests of both the insurer and the insured, ensuring that certain responsibilities and rights are clearly defined. In fire insurance, these conditions may cover aspects such as the duty to disclose material facts, the requirements for notice of loss, and obligations regarding the preservation of property post-loss. They are a critical part of the regulatory framework governing property insurance to ensure fair treatment and prevent misunderstandings between parties. While auto insurance may have its own set of regulations, it does not generally include statutory conditions in the same way as fire insurance. Life insurance does not typically involve statutory conditions because it is governed by different principles and laws. Similarly, travel insurance often comes with its own terms regarding coverage and exclusions, but not statutory conditions like those found in property insurance policies.