• Level 3 – Management

Level 3 – Management

Exam Length: 3 Hours

Exam Format:

  • Section 1: RIB Act + Regulations (20 Multiple Choice)
  • Section 2: Administration + Finance (85 Narrative Marks)
  • Section 3: RIBO Form 1 Financial Statement (15 Narrative Marks)

Passing Grade:

  • 75% Overall grade
  • 60% in each section
  • Failure to obtain the passing grade in Section 1 or 3, provided 75% was obtained overall requires a rewrite of only the failed section.
  • Otherwise, all three sections must be rewritten.

Eligibility to Write the Exam:

  • Active RIBO 1 License
  • 2 Years Work Experience Out-of-Province licensed insurance brokers*
  • Please refer to the RIBO Exam Rules for more details.

Helpful Resource:

Successful completion of both the “Level 3 Management” examination and the “Level 2 Technical” examination qualifies an individual to the “Level 3” License and therefore eligible to act as the Principal Broker of a broker business. However, individuals who hold a “Level 3” License will still be under the direction of the Principal Broker of the firm they are employed by.

To apply to write the “Level 3” examination, an individual must hold a RIBO registration restricted to “Level 1” or “Level 2” and have been actively employed for at least two years with a RIBO registered firm.

Successful completion of only the “Level 3” examination will not remove the restriction of “Level 1.” It is suggested that all those planning to write the examination carefully review the Standards for Management Skills. 

Upon completion of the RIBO exam, results will be provided to you by your exam service provider once they are available. Please do not contact RIBO for your exam results.

How to Apply to Write the Examination

You can register for a RIBO exam with the following exam providers:

Candidates are eligible to rewrite within the 8-month period following their first examination per exam provider. Candidates after two failed attempts are subject to an 8-month waiting period following their second failed attempt with the same service provider. 

Exam Standards

Please carefully read the Exam Standards.

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

The following Brokerage Management course texts are recommended as exam preparation or self-study materials for this exam:

Additional self study materials are available for download in the broker resources section of the website: