Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Who can legally give notice when a loss occurs?

1. The agent of the insured must give notice

2. Only the insured can legally give notice

3. The insurance agent and the agent of the insured are the same

4. Any person to whom any part of the money is payable may give notice

The correct answer is: Any person to whom any part of the money is payable may give notice

When a loss occurs, any person to whom any part of the insurance money is payable can legally give notice. This is because the insurance policy is a contract between the insurance company and the person who will receive the insurance money, and that person has a vested interest in reporting the loss as soon as possible. Option A is incorrect because it assumes that the insurance agent and agent of the insured are the same, which is not always the case. Option B is incorrect because the insured may not always be available to give notice, or they may not be aware of the policy details. Option C is incorrect because the insurance agent and agent of the insured are not always the same, and their roles and responsibilities may differ. The correct choice, Option D, is the most inclusive and accounts for all parties who may have a claim to the insurance money.