An individual with a bad driving record comes to your office for automobile insurance. You give him/her a premium quotation. He/she cannot pay you right away but demands cover immediately. What are you obligated to do? OA) You are obliged to provide coverage for 21 days. OB) You must provide coverage. If you wish to cancel it subsequently for non-payment of premium, you must first apply to the Financial Services Regulatory Authority of Ontario for permission to do so. OC) You must provide an application for completion and forward it to an insurer. OD) You should report this type of situation to RIBO for guidance.
An individual with a bad driving record comes to your office for automobile insurance. You give him/her a premium quotation. He/she cannot pay you right away but demands cover immediately. What are you obligated to do? OA) You are obliged to provide coverage for 21 days. OB) You must provide coverage. If you wish to cancel it subsequently for non-payment of premium, you must first apply to the Financial Services Regulatory Authority of Ontario for permission to do so. OC) You must provide an application for completion and forward it to an insurer. OD) You should report this type of situation to RIBO for guidance.
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Transcribed Image Text:An individual with a bad driving record comes to your office for automobile insurance. You give him/her a premium
quotation. He/she cannot pay you right away but demands cover immediately. What are you obligated to do?
OA) You are obliged to provide coverage for 21 days.
OB) You must provide coverage. If you wish to cancel it subsequently for non-payment of premium, you must first
apply to the Financial Services Regulatory Authority of Ontario for permission to do so.
OC) You must provide an application for completion and forward it to an insurer.
OD) You should report this type of situation to RIBO for guidance.
Expert Solution
Step 1: Define automobile insurance
Automobile insurance, often known as car insurance, is a type of insurance that provides financial protection in the case of certain hazards associated with owning and operating a motor vehicle. It is a contract between an individual or corporation (the insured) and an insurance company (the insurer) in which the insurer agrees to compensate the insured for specific losses or obligations related to the insured vehicle.
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