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

Question: 1 / 475

Income replacement coverage under the OAP1 is limited to what percentage of gross weekly income?

60%

70%

Income replacement coverage under the Ontario Automobile Policy (OAP1) is designed to provide financial assistance to individuals who have lost income as a result of an auto accident. The correct percentage for income replacement is 70% of the gross weekly income. This figure reflects a balance between providing adequate support after a loss while ensuring that the insurance system remains financially sustainable.

In determining the appropriate level of income replacement, the policy aims to cover a substantial portion of lost earnings for injured individuals, facilitating their financial stability as they recover. The reason this percentage is not higher, such as 80% or 100%, is to discourage potential misuse of the insurance benefits, wherein individuals might opt to not return to work, favoring their claim benefits more than their actual income. Therefore, setting the cap at 70% helps maintain a focus on rehabilitation and return to work efforts.

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80%

100%

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