Registered Insurance Brokers of Ontario (RIBO) Practice Exam

The correct answer indicates that the client's insurance remains the primary coverage when a licensed driver has permission to use the client's vehicle. This aligns with the principle of vicarious liability in insurance, where the owner of the vehicle typically holds the primary responsibility for any incidents that occur while the vehicle is being operated by someone they have authorized to use it.

In cases involving permissive use, the insurance policy of the vehicle owner usually provides coverage first, with the driver’s personal insurance potentially serving as secondary coverage. This helps ensure that there is a clear line of responsibility and financial protection for both the vehicle owner and the driver in the event of an accident.

The other options do not accurately represent the typical handling of such situations. For example, stating that only the driver's insurance applies does not consider the vehicle owner's policy, which generally steps in first. Additionally, suggesting that the client's policy will not cover the driver overlooks the protective nature of permission in most insurance contracts. Lastly, while it is true that the vehicle owner may have some liability, framing it as a primary issue distracts from the standard coverage framework where the owner's insurance responds first.