Registered Insurance Brokers of Ontario (RIBO) Practice Exam

The correct answer indicates that the length of time the applicant has been in business would not impact the rate on a property insurance policy. Property insurance premiums are primarily influenced by factors that directly affect the risk associated with insuring a property.

The amount of coverage purchased is crucial because higher coverage typically translates to higher premiums, as the insurer is taking on more risk. The location of the property is another significant criterion; properties in areas prone to natural disasters, crime, or other risks may attract higher rates. Similarly, the claims history of an applicant is key, as a history of frequent claims indicates a higher risk, leading to increased premiums.

In contrast, while the length of time in business might provide some insights into the applicant's stability or reliability as a business, it isn’t a direct factor that insurers use to determine property insurance rates. Therefore, its impact on the specific price of the insurance policy is negligible compared to the other factors listed.