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

The correct answer is that the insured is entitled to Loss of Use by Theft Coverage when they have physical damage coverage. This type of coverage provides financial compensation for the use of a vehicle following a theft, allowing the insured to rent a vehicle or use alternative transportation while their own vehicle is unavailable.

Physical damage coverage typically includes comprehensive and collision coverage, which protects against various types of damage to the insured’s vehicle. When a vehicle is stolen, if the insured holds physical damage coverage, the policy often extends to cover the costs associated with the loss of use of that vehicle. The rationale is that the insured has already secured protection against the potential losses associated with damages, which includes the circumstances surrounding theft.

Other options may mislead; for instance, simply having third-party liability coverage or relying on a special endorsement does not inherently guarantee coverage for loss of use after theft. Additionally, the stipulation regarding a 72-hour timeframe does not apply in the context of whether the insured is entitled to this coverage; rather, it may be relevant for certain claims processing timelines or waiting periods before benefits kick in. However, these stipulations do not influence the basic entitlement linked to the type of coverage purchased.