Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Question: 1 / 475

True or False: A person can sell or assign insurance coverage when selling a business if certain conditions are met.

True

The assertion that a person can sell or assign insurance coverage when selling a business, given that certain conditions are met, is indeed true. This scenario often arises when the ownership of a business is transferred, which may include the rights to its assets, liabilities, and contracts, such as insurance policies.

In many instances, insurance policies may allow for their transfer under specific circumstances, such as with the consent of the insurer or if the policy itself contains provisions regarding assignment. The new business owner may need to ensure that the terms of the existing insurance coverage are suitable for their operations and may even negotiate with the insurer for any changes needed following the transfer.

Thus, it is essential to understand that transferring insurance coverage is possible, provided the necessary conditions and policies allow for such action, making the statement true.

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False

Only if there is an exclusive clause

This is always illegal

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