Successful completion of both the “Unrestricted – Management” examination and the “Unrestricted – Technical Only” examination qualifies an individual to the “Unrestricted” registration and therefore eligible to act as the Principal Broker of a broker business. However, individuals who hold an “Unrestricted” registration will still be under the direction of the Principal Broker of the firm they are employed by.

To make application to write the “Unrestricted – Management” examination, an individual must hold a RIBO registration restricted to “Acting Under Supervision” or “Unrestricted – Technical Only” and have been actively employed for at least two (2) years with a RIBO registered firm.

Successful completion of only the “Unrestricted – Management” examination will not remove the restriction of “Acting Under Supervision”. It is suggested that all those planning to write the examination carefully review the Standards for Management Skills.

About the Examination

The examination for Management Skills of the “Unrestricted” registration is three (3) hours in length and is comprised of three (3) parts. A minimum of 60% in each part and an overall total of 75% must be obtained to qualify successfully. Failure to obtain the minimum mark in either Part 1 or Part 3, provided the passing mark of 75% was obtained, a rewrite of that part alone would be granted. Otherwise, ALL three (3) parts of the examination must be rewritten.

The examination was developed by a team of experienced insurance professionals. It is revised bi-annually and with any legislative changes to the insurance industry.

Parts

1. RIB Act and Regulations
Style of Answer: Multiple Choice
Total Markers: 20
60% Pass Mark: 12
Exam Content: 17%

2. Administration and Finance
Style of Answer: Narrative
Total Markers: 85
60% Pass Mark: 51
Exam Content: 70%

3. RIBO Form 1; Financial Statement
Style of Answer: Narrative
Total Markers: 15
60% Pass Mark: 9
Exam Content: 13%

Sample Case Study Examination Question

Question:

Three (3) budgets a broker should develop are:

  • Income or Sales Budget
  • Expense Budget
  • Cash Budget

Briefly describe each one and its purpose. (9 marks)

Analyze the Question:

  • There are three (3) types of budgets listed.
  • A brief description of each type of budget and its purpose is required.
  • The mark value is 9 so each type of budget is worth 3 marks.

An appropriate Answer:

  • Income or Sales Budget - details anticipated income receivable from all sources for the planning period (usually one year) with monthly breakdown. It tells the broker what his/her income is likely to be.
  • Expense Budget - details the anticipated expenses during planning period. It tells the broker what his/her expenses are likely to be so that he/she can compare them to income to ensure a positive result.
  • Cash Budget - details anticipated cash available at each month end to cover expenses. If expenses in a particular month will exceed income, then additional monies will have to be found to cover the shortfall. This budget is the leading indicator to the broker that he/she could be in a negative position later in the year unless remedial action is taken.

Self-Study Resources

Individuals who prefer to study on their own may find the following resources useful:

  • The RIB Act, Ontario Regulations 989, 990 and 991, RIBO By-laws
  • Financial Management Supplement
  • PB Handbook
  • Guidelines to Assist in Completing FORM 1
  • Form 1 Position Report
  • Guidelines on Marketing Practices
  • "C.A.I.B. Volume IV" available from:
    I.B.A.O. (Insurance Brokers Association of Ontario)
    1 Eglinton Avenue East, Suite 700
    Toronto, Ontario M4P 3A1
    Telephone: (416) 488-7422 / 1-800-268-8845
    Fax: (416) 488-7526
    www.ibao.org
  • "C132 Practical Issues Broker Management" available from:
    The Insurance Institute of Ontario
    18 King Street East, 16th Floor
    Toronto, Ontario M5C 1C4
    Telephone: (416) 362-8586
    Fax: (416) 362-1126
    www.insuranceinstitute.ca