Registered Insurance Brokers of Ontario (RIBO) Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 475

All of the following are true about the risks insured by the Facility Association EXCEPT:

The Facility Association provides coverage only for those who cannot obtain insurance in the regular market.

An application must be accompanied with a rejection letter to place a risk with the Facility.

A broker can assign facility business to any insurer.

The other options are incorrect for the following reasons

Option A is incorrect because the primary purpose of the Facility Association is to provide insurance to high-risk individuals who have trouble obtaining coverage in the regular market.

Option B is incorrect because while an application is required, it does not necessarily need to be accompanied by a rejection letter.

Option D is incorrect because while the Compulsory Insurance Act requires all applicants to have automobile insurance, it does not guarantee that they can obtain it in the regular market. That is why the Facility Association exists.

Get further explanation with Examzify DeepDiveBeta

The Compulsory Insurance Act requires that all applicants must be able to obtain automobile insurance.

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