Ch.13/RIB Act

Question 1

Who is RIBO?

Answer 1

• overseer of in’s. Broker biz
• self governing organization for general ins. Brokers
• regulates licensing, professional competence, ethical conduct, insurance related financial obligations
• examine candidates
• investigates complaints + penalizes

Question 2

RIBO is governed by?

Answer 2

The council:

13 ppl

• 9 elected brokers
• 4 public members

Acts as “board of directors “

council elected annually

Question 3

Councils main authority(Q/RCD)

Answer 3

1. Qualification and registration committee
2. Complaints committee
3. Discipline Committee

Question 4

RIBO 5 departments

Answer 4

1. Admin and finance 2. Complaints and investigation 3. Corporation legal services 4. Marketing and communication 5. Qualification and registration

Question 5

Administration and finance

Answer 5

-financial matters - clerical and office services

Question 6

Complaints and investigations Dept

Answer 6

• monitor broker conduct and financial position
• spot checks every 3-5 years
• hears and reviews initial complaints
• if serious, assigned to investigator
• once broker notified of complaint agains them, they have 2 week to respond in writing

Question 7

Corporate legal services

Answer 7

• legal services to council , committees, etc -reports to general manager - counsels any RIBO member on RIBO act

Question 8

Communication and marketing

Answer 8

-Responsible for all marketing materials and newsltters

Question 9

Qualification and Registration

Answer 9

-Administers qulification an registration requirements of RIB act -reviews all applications and renewal applications -reponsible for broker examinations and any changes necessary -gives advice and guidance on all q&r issues

Question 10

policy/certificate

Answer 10

must be provided to cient within 21 days after placing such covrage

Question 11

fees for services

Answer 11

PRIOR TO PLACING- must be disclosed to the person: the amount of fee, portion of premium retained, total premium

Question 12

brokers responsibilities

Answer 12

• give knowledgeable advice
• counsel on risk management
• give adequate knowledge of risk to insurer
• co-operate w/ insurer

Question 13

broker trust account

Answer 13

-premiums from clients must be deposited in to trust account within 3 banking days

Question 14

brokers are fiduciary in nature

Answer 14

• special trust/confidence in handling/supervising affairs/funds of others

Question 15

discipline committee

Answer 15

if violation, brought before complaints commiitee -may direct matter to Discipline committee - power to: revoke,

place conditions,

imposr a fine,

impose reimbursement

Question 16

who can be a broker

Answer 16

see pic

Question 17

when does RIBO cert. expire

Answer 17

sept 30 every year

Question 18

notify RIBO of change in status

Answer 18

within 30 days

Question 19

issuing with unlicenced insurers

Answer 19

-must inform clients that insurer not licensed before place client -req written consent -cannot place auto insurance UNLESS is in excess of min limits -file quarterly w/ superintendent re: UN licence

Question 20

what investments can be purchased w/ trust funds

Answer 20

• marketable securities
• stock certificates
• bonds
• debentures
• treasury billd or any other thing of value tha can be negotiated by broker

Question 21

Minimum equity capitalization member needs

Answer 21

$2500 sole prop

$5000 partnership/corp

Question 22

errors and omissions insurance minimum

Answer 22

$3,000,000

Question 23

Fidelity Insurance min

Answer 23

$100,000

Question 24

can broker make other arragements for payment of policy?

Answer 24

YES must be disclosed before insurance placed + shown as service fee no rebating (giving back to cust some of commission or paying part of premium)

Question 25

RESTRICTED LICENCE

Answer 25

can: -deal w/ public -aid in obtaining insurance/reinsurance -provide risk mgmt -provide insurance consulting services

Question 26

can broker pay referral lead fees

Answer 26

991-15 misconduct #12 (pg30-31) Can pay referral fees to ppl only if: - licences insueanre agent/broker -licences to seek mutual funds - licenced to sell real estate -licenced mortgage broker Financial planner Providing financing for payment Providing a prod/sec that reduces risk

Question 27

RIBO misconduct

Answer 27

false advertising rebating harassing potential clients acting as a broker when no see list

Question 28

what is a principal broker

Answer 28

-has a uthority to act in the name/on behalf of the firm -personally responsible for inproper acts of the firm -responsible to see that all trust accounts/book; records, and accounts maintained

Question 29

Fine for misconduct

Answer 29

* Maximum: $100,000 * **UNLESS** member is an individual: max $25000

Question 30

By law 20

Answer 30

* mus t renew membership every year * applocation and fees must be filed on/before aug 31 * otherwise, suspended by sept 30