GENERAL INSURANCE LEVEL 1 – ALBERTA EXAM
NEWEST 2025 ACTUAL EXAM WITH COMPLETE 100+
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED A+ / ALBERTA
GENERAL INSURANCE LEVEL 1 REAL EXAM |
GUARANTEED PASS
A "conflict of interest" position means a situation where an
intermediary
A) is charging an excessive rate of interest on a payment plan
B) is looking after the best interests of the client and other stakeholders
C) has an incentive to act other than in the best interests of the client
D) commits a civil wrong, other than a breach of contract - Correct Answer > c)
has an incentive to act other than in the best interests of the client
An SPF4 - Garage Automobile Policy provided coverage for physical
damage to owned automobile. The insured can choose the coverage
from four available options. Which of the following is NOT one of these
options?
A) All perils
,B) Collision or upset
C) Comprehensive
D) Specified perils - Correct Answer > a) All perils
The errors & omissions insurance policy required by the Insurance Act
for all holders of a Certificate of Authority must provide a per claim
minimum limit of
A) $100,000
B) $200,000
C) $500,000
D) $1,000,000 - Correct Answer > c) $500,000
The insurance industry manages large pools of money from premiums
which are generally paid in advance. This capital has a positive influence
on the economy. An example of this is
A) insurers invest in federal, provincial and municipal bonds, thus
recycling premiums into community development
B) the peace of mind that results when substituting a known premium
payment for an uncertain loss payment
C) businesses must set aside reserves of money in case of a future loss
or accident
,D) insurance protects the insured's interests in property, but excludes
the lender's investment - Correct Answer > a) insurers invest in federal,
provincial and municipal bonds, thus recycling premiums into
community development
PIPEDA (Personal Information Protection and Electronic Documents Act)
sets out 10 privacy protection principles that must be followed by
organizations. Which of the following is NOT one of these principles?
A) Personal information shall be accurate, complete and up-to-date as is
necessary for the purposes for which it is to be used
B) Personal information may only be gathered to write authorized types
of business and must not exceed specified limits
C) Personal information shall be protected by security safeguards
appropriate to the sensitivity of the information
D) The collection of personal information shall be limited to that which
is necessary for the purposes identified by the organization - Correct Answer >
b) Personal information may only be gathered to write authorized types
of business and must not exceed specified limits
An insured property is covered by two separate commercial policies
placed with two different insurers. Insurer A's policy has a limit of
$100,000 and Insurer B's policy has a limit of $200,000. The insured
suffers an insurable loss of $230,000. Assuming no deductibles apply,
how much will each insurer pay?
, A) Insurer A will pay $100,000. Insurer B will pay $130,000
B) Insurer A will pay $100,000, Insurer B will pay $200,000
C) Insurer A will pay $76,659. Insurer B will pay $153,341
D) Neither insurer will pay. Two policies on the same property are
prohibited - Correct Answer > c) Insurer A will pay $76,659. Insurer B will pay
$153,341
On a Commercial Building, Equipment, and Stock Form, that insures the
building owner, which of the following would not be included under the
"building" definition?
A) Growing plants and trees inside the building used for decorative
purposes
B) Building maintenance supplies
C) Fixed structures pertaining to the building
D) Temporary fixtures and fittings - Correct Answer > d) Temporary fixtures and
fittings
Under a Commercial Building, Equipment, and Stock insurance policy,
the definition of "stock" includes
NEWEST 2025 ACTUAL EXAM WITH COMPLETE 100+
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED A+ / ALBERTA
GENERAL INSURANCE LEVEL 1 REAL EXAM |
GUARANTEED PASS
A "conflict of interest" position means a situation where an
intermediary
A) is charging an excessive rate of interest on a payment plan
B) is looking after the best interests of the client and other stakeholders
C) has an incentive to act other than in the best interests of the client
D) commits a civil wrong, other than a breach of contract - Correct Answer > c)
has an incentive to act other than in the best interests of the client
An SPF4 - Garage Automobile Policy provided coverage for physical
damage to owned automobile. The insured can choose the coverage
from four available options. Which of the following is NOT one of these
options?
A) All perils
,B) Collision or upset
C) Comprehensive
D) Specified perils - Correct Answer > a) All perils
The errors & omissions insurance policy required by the Insurance Act
for all holders of a Certificate of Authority must provide a per claim
minimum limit of
A) $100,000
B) $200,000
C) $500,000
D) $1,000,000 - Correct Answer > c) $500,000
The insurance industry manages large pools of money from premiums
which are generally paid in advance. This capital has a positive influence
on the economy. An example of this is
A) insurers invest in federal, provincial and municipal bonds, thus
recycling premiums into community development
B) the peace of mind that results when substituting a known premium
payment for an uncertain loss payment
C) businesses must set aside reserves of money in case of a future loss
or accident
,D) insurance protects the insured's interests in property, but excludes
the lender's investment - Correct Answer > a) insurers invest in federal,
provincial and municipal bonds, thus recycling premiums into
community development
PIPEDA (Personal Information Protection and Electronic Documents Act)
sets out 10 privacy protection principles that must be followed by
organizations. Which of the following is NOT one of these principles?
A) Personal information shall be accurate, complete and up-to-date as is
necessary for the purposes for which it is to be used
B) Personal information may only be gathered to write authorized types
of business and must not exceed specified limits
C) Personal information shall be protected by security safeguards
appropriate to the sensitivity of the information
D) The collection of personal information shall be limited to that which
is necessary for the purposes identified by the organization - Correct Answer >
b) Personal information may only be gathered to write authorized types
of business and must not exceed specified limits
An insured property is covered by two separate commercial policies
placed with two different insurers. Insurer A's policy has a limit of
$100,000 and Insurer B's policy has a limit of $200,000. The insured
suffers an insurable loss of $230,000. Assuming no deductibles apply,
how much will each insurer pay?
, A) Insurer A will pay $100,000. Insurer B will pay $130,000
B) Insurer A will pay $100,000, Insurer B will pay $200,000
C) Insurer A will pay $76,659. Insurer B will pay $153,341
D) Neither insurer will pay. Two policies on the same property are
prohibited - Correct Answer > c) Insurer A will pay $76,659. Insurer B will pay
$153,341
On a Commercial Building, Equipment, and Stock Form, that insures the
building owner, which of the following would not be included under the
"building" definition?
A) Growing plants and trees inside the building used for decorative
purposes
B) Building maintenance supplies
C) Fixed structures pertaining to the building
D) Temporary fixtures and fittings - Correct Answer > d) Temporary fixtures and
fittings
Under a Commercial Building, Equipment, and Stock insurance policy,
the definition of "stock" includes
