ALBERTA GENERAL INSURANCE LEVEL 1 EXAM LATEST 2026
UPDATED QUESTIONS AND VERIFIED 100% SOLUTIONS
(2026/2027) |A+ GRADED |GUARANTEED PASS
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 - Answers -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 - Answers -d) all of the above
The binding limits outlined in the agency agreement
a) represent the minimum amount an insurance company will entertain
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,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 - Answers -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 - Answers -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,
a) contact the insurer and have them removed
b) contact the insurer and have them modified
c) bring them to the attention of the insured and explain the effect they would have on
potential losses
d) all of the above - Answers -c) bring them to the attention of the insured and explain the effect
they would have on potential losses
Which of the following is NOT an example of private or personal information
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,a) A client's contact information
b) A client's credit rating
c) A list of criteria for acceptable risk identification
d) Medical history for an identified client - Answers -c) A list of criteria for acceptable risk
identification
Customer profiles are useful tools for identifying clients and their insurance needs. Because
information being collected is confidential, discretion and respect for the privacy of others is
essential. A federal statute, the Personal Information Protection and Electronic Documents Act
requires
a) information gathered for a specific purpose must only be used for that purpose
b) information requested must be relevant
c) information collected must be held in strictest confidence
d) all of the above - Answers -d) all of the above
Privacy laws are in effect to provide consumers with confidence that their personal information
will be kept confidential. A client's financial history reveals a bankruptcy filing which took place
seven years prior. You must not share this information with
a) the underwriter
b) others within your office
c) the marketing broker in your office helping you place coverage
d) the customer service representative in your office assisting you in arranging adequate
insurance coverage - Answers -b) others within your office
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, The Personal Information Protection Act (PIPA) states that an organization may use personal
information only
a) arbitration or mediation purposes
b) purposes that are reasonable
c) 30 days unless consent has been granted
d) purposes in relation to existing or proposed organizational program - Answers -b) purposes
that are reasonable
A broker or agent has a fiduciary duty to the insurers they represent. A fiduciary duty
a) is a duty to act in trust and in the best interests of another
b) arises in the relationship between an agent and his or her principal
c) applies to monetary aspects of the relationship between the agent and his or her principal
d) all of the above - Answers -d) all of the above
Brokers or agents usually have two bank accounts for their business, an operating account and a
trust account. A trust account is one that is used to deposit
a) premiums collected to pay insurers for policies issued
b) commission earned
c) contingent profits earned
d) earned premiums - Answers -a) premiums collected to pay insurers for policies issued
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UPDATED QUESTIONS AND VERIFIED 100% SOLUTIONS
(2026/2027) |A+ GRADED |GUARANTEED PASS
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 - Answers -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 - Answers -d) all of the above
The binding limits outlined in the agency agreement
a) represent the minimum amount an insurance company will entertain
1|Page
,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 - Answers -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 - Answers -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,
a) contact the insurer and have them removed
b) contact the insurer and have them modified
c) bring them to the attention of the insured and explain the effect they would have on
potential losses
d) all of the above - Answers -c) bring them to the attention of the insured and explain the effect
they would have on potential losses
Which of the following is NOT an example of private or personal information
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,a) A client's contact information
b) A client's credit rating
c) A list of criteria for acceptable risk identification
d) Medical history for an identified client - Answers -c) A list of criteria for acceptable risk
identification
Customer profiles are useful tools for identifying clients and their insurance needs. Because
information being collected is confidential, discretion and respect for the privacy of others is
essential. A federal statute, the Personal Information Protection and Electronic Documents Act
requires
a) information gathered for a specific purpose must only be used for that purpose
b) information requested must be relevant
c) information collected must be held in strictest confidence
d) all of the above - Answers -d) all of the above
Privacy laws are in effect to provide consumers with confidence that their personal information
will be kept confidential. A client's financial history reveals a bankruptcy filing which took place
seven years prior. You must not share this information with
a) the underwriter
b) others within your office
c) the marketing broker in your office helping you place coverage
d) the customer service representative in your office assisting you in arranging adequate
insurance coverage - Answers -b) others within your office
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, The Personal Information Protection Act (PIPA) states that an organization may use personal
information only
a) arbitration or mediation purposes
b) purposes that are reasonable
c) 30 days unless consent has been granted
d) purposes in relation to existing or proposed organizational program - Answers -b) purposes
that are reasonable
A broker or agent has a fiduciary duty to the insurers they represent. A fiduciary duty
a) is a duty to act in trust and in the best interests of another
b) arises in the relationship between an agent and his or her principal
c) applies to monetary aspects of the relationship between the agent and his or her principal
d) all of the above - Answers -d) all of the above
Brokers or agents usually have two bank accounts for their business, an operating account and a
trust account. A trust account is one that is used to deposit
a) premiums collected to pay insurers for policies issued
b) commission earned
c) contingent profits earned
d) earned premiums - Answers -a) premiums collected to pay insurers for policies issued
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