Registered Insurance Brokers of Ontario (RIBO) Practice Exam 2025 - Free RIBO Practice Questions and Study Guide

The correct answer is that valuations are needed for items insured on a valued basis. Under a Personal Articles endorsement, which pertains to insuring specific personal property items such as jewelry, fine art, or collectibles, it is essential to provide a valuation for the items that are being insured. This ensures that the items are accurately valued for coverage and helps determine the appropriate premium based on their worth.

Accurate valuations are crucial because they affect the policy's limits and potential claims settlement, ensuring that the insured can recover the full value of an item in the event of loss or damage. The requirement for valuations reflects the endorsement's intent to provide tailored coverage for higher-value items, which often need more careful consideration than standard homeowners policy provisions.

While other options highlight different aspects of insurance coverage practices, they do not pertain specifically to the requirement for valuations on valued items under this endorsement. Hence, having a proper valuation process is a key factor in effectively managing and underwriting such unique insurance needs.