Registered Insurance Brokers of Ontario (RIBO) Exam 2026 – 400 Free Practice Questions to Pass the Exam

The correct answer is indeed that the insurer and the broker set the rules and agreements concerning the binding of insurance coverage. This is because the relationship between brokers and insurers is collaborative when it comes to establishing terms and conditions for insurance policies. Brokers act as intermediaries, representing clients and negotiating on their behalf, but they must also comply with the guidelines and requirements set forth by the insurers they work with.

Together, the insurer and the broker determine the specifics of coverage availability, limits, exclusions, and the processes required for binding coverage, ensuring that both parties have a mutual understanding of the agreements made. This collaboration is crucial since it helps safeguard the interests of all involved, ensuring that policies are issued correctly and appropriately represent the coverage being sought by the insured.