Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Within a broker's or agent's office, which function is commonly conducted?

1. Claims adjustment

2. Risk assessment

3. Premium collection

4. Policy issuance

The correct answer is: Premium collection

Premium collection is a fundamental function typically conducted within a broker's or agent's office. Brokers and agents act as intermediaries between clients and insurance providers, and part of their role involves managing the financial transactions associated with insurance policies. This includes ensuring that clients pay their premiums on time, which is crucial for maintaining the coverage provided by their policies. Efficient premium collection processes help ensure that clients remain insured and reduce the risk of policy lapses. The other functions mentioned are also essential in the broader insurance process. For example, claims adjustment usually falls under the purview of insurance companies rather than brokers or agents, who may assist clients but do not directly adjust claims. Risk assessment predominantly occurs during the underwriting process, where insurers evaluate potential policyholders' risk profiles. Policy issuance is typically the responsibility of the insurance company itself, although brokers and agents facilitate this by submitting applications and offering guidance throughout the process.