Registered Insurance Brokers of Ontario (RIBO) Practice Exam

A fiduciary in the context of insurance refers to a person or organization that has the responsibility to manage someone else's money or property with a high level of care and trust. This relationship involves the fiduciary acting in the best interests of the other party, often referred to as the principal.

In the case of the correct answer, describing a fiduciary as someone who holds goods on behalf of another accurately captures this essence. For instance, in insurance, brokers often handle clients' funds, such as premiums or trust accounts, which reinforces the obligation to act in the clients' best interest.

The other options, while relevant in the context of insurance, do not embody the core definition of a fiduciary. For instance, being insured against liability reflects a concept of protection rather than the responsibilities involved in fiduciary duties. Responsibilities for claims payments are typically handled by the insurer rather than being a characteristic of the fiduciary role. Assessing risk for an insurer pertains more to underwriting processes and is not a central aspect of fiduciary responsibility.