1|Page
ALBERTA GENERAL INSURANCE LEVEL 1 EXAM, PRACTICE EXAM
AND STUDY GUIDE NEWEST 2025/2026 COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)|ALREADY
GRADED A+
The insurance market is dynamic and constantly changing. Your knowledge
of current market conditions will be invaluable
a) in matching your client's needs to the most appropriate insurance product
being offered at the time
b) in understanding that an underwriter will be willing to cut prices in a hard
market
c) in understanding that an underwriter will implement stricter terms and
conditions in a soft market
d) all of the above - ANSWER-a) in matching your client's needs to the most
appropriate insurance product being offered at the time
Why is it necessary to monitor and modify a risk management plan?
a) If it is determined that a technique is not effective, changes may be
required
b) New exposures to loss may develop
c) Benchmarks used to measure outcomes may be unrealistic and require
modification
,2|Page
d) all of the above - ANSWER-d) all of the above
There may be times when the premium you quote to a client from the rate
manual and the final premium differ. It is important that you discuss the
reason for the discrepancy with your underwriter so you can
a) have the discrepancy corrected
b) explain the reasons for the difference to your client
c) look for other solutions such as an increase in deductible to lower the
premium
d) all of the above - ANSWER-d) all of the above
A premium
a) is not a primary motivator for clients in obtaining insurance coverage
b) in the rate manual is the final premium
c) is the amount of money an insurer charges to provide insurance coverage
d) if lower, is the sole factor in customer retention - ANSWER-c) is the
amount of money an insurer charges to provide insurance coverage
,3|Page
Agencies/brokers must have efficient systems to handle reported claims.
While it is not generally the function of producers to be involved in the
handling of claims, they must do which of the following?
a) Promptly notify the insurer if a loss is reported and appears not to be
covered by the policy
b) recommend and appoint an adjuster
c) Monitor the progress of the claim and assist the client, adjuster and
insurer, whenever requested
d) all of the above - ANSWER-c) Monitor the progress of the claim and assist
the client, adjuster and insurer, whenever requested
Brokers or agents do not normally adjust claims, but you are an advocate for
the insured. To provide good claims service to your client, it is important to
a) promptly notify the insurer of the loss and explain the claims process to
your client
b) monitor the progress of the claim
c) contact the client periodically to verify that the claim is progressing to his
or her satisfaction
d) all of the above - ANSWER-d) all of the above
, 4|Page
The binding limits outlined in the agency agreement
a) represent the minimum amount an insurance company will entertain
b) grant the same degree of binding authority to an insurer's broker
c) act as a control on broker's binding powers
d) none of the above - ANSWER-c) act as a control on broker's binding
powers
Before an insurance agent may bind an insurer to a policy at the request of
a client, he or she must always have
a) a signed application
b) a signed application and the premium must be paid in advance
c) authority from an insurer to bind the risk
d) the rest of the insured's business - ANSWER-c) authority from an insurer
to bind the risk
When reviewing policy wordings, identify any conditions or warranties that
require action or duties on the part of the insured in order to maintain
coverage. Once identified,
ALBERTA GENERAL INSURANCE LEVEL 1 EXAM, PRACTICE EXAM
AND STUDY GUIDE NEWEST 2025/2026 COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)|ALREADY
GRADED A+
The insurance market is dynamic and constantly changing. Your knowledge
of current market conditions will be invaluable
a) in matching your client's needs to the most appropriate insurance product
being offered at the time
b) in understanding that an underwriter will be willing to cut prices in a hard
market
c) in understanding that an underwriter will implement stricter terms and
conditions in a soft market
d) all of the above - ANSWER-a) in matching your client's needs to the most
appropriate insurance product being offered at the time
Why is it necessary to monitor and modify a risk management plan?
a) If it is determined that a technique is not effective, changes may be
required
b) New exposures to loss may develop
c) Benchmarks used to measure outcomes may be unrealistic and require
modification
,2|Page
d) all of the above - ANSWER-d) all of the above
There may be times when the premium you quote to a client from the rate
manual and the final premium differ. It is important that you discuss the
reason for the discrepancy with your underwriter so you can
a) have the discrepancy corrected
b) explain the reasons for the difference to your client
c) look for other solutions such as an increase in deductible to lower the
premium
d) all of the above - ANSWER-d) all of the above
A premium
a) is not a primary motivator for clients in obtaining insurance coverage
b) in the rate manual is the final premium
c) is the amount of money an insurer charges to provide insurance coverage
d) if lower, is the sole factor in customer retention - ANSWER-c) is the
amount of money an insurer charges to provide insurance coverage
,3|Page
Agencies/brokers must have efficient systems to handle reported claims.
While it is not generally the function of producers to be involved in the
handling of claims, they must do which of the following?
a) Promptly notify the insurer if a loss is reported and appears not to be
covered by the policy
b) recommend and appoint an adjuster
c) Monitor the progress of the claim and assist the client, adjuster and
insurer, whenever requested
d) all of the above - ANSWER-c) Monitor the progress of the claim and assist
the client, adjuster and insurer, whenever requested
Brokers or agents do not normally adjust claims, but you are an advocate for
the insured. To provide good claims service to your client, it is important to
a) promptly notify the insurer of the loss and explain the claims process to
your client
b) monitor the progress of the claim
c) contact the client periodically to verify that the claim is progressing to his
or her satisfaction
d) all of the above - ANSWER-d) all of the above
, 4|Page
The binding limits outlined in the agency agreement
a) represent the minimum amount an insurance company will entertain
b) grant the same degree of binding authority to an insurer's broker
c) act as a control on broker's binding powers
d) none of the above - ANSWER-c) act as a control on broker's binding
powers
Before an insurance agent may bind an insurer to a policy at the request of
a client, he or she must always have
a) a signed application
b) a signed application and the premium must be paid in advance
c) authority from an insurer to bind the risk
d) the rest of the insured's business - ANSWER-c) authority from an insurer
to bind the risk
When reviewing policy wordings, identify any conditions or warranties that
require action or duties on the part of the insured in order to maintain
coverage. Once identified,
