GENERAL LEVEL 1 INSURANCE LICENCE
ALBERTA 200 QUESTIONS AND
ANSWERS
1. Accident and health (sickness) insurance: A form of insurance
compensating an individual for loss as a result of an accident or illness. It may
pay certain or all expenses for medical and similar services and a weekly or
monthly indemnity for loss of income. The amounts and items covered vary from
policy to policy and depend to some extent on what coverage is purchased by
the insured.
2. Accident basis: The injury or damage must be due to an event that is sudden,
unintended (not deliberate), and unexpected.
3. Accident frequency: The determination of how often the rate or frequency of
accidents occur at a particular operation, site, or location, or to the insured as a
whole, for a specified period of time for the exposure units involved.
4. Accidental death and dismemberment insurance: Form of accident
insurance that indemnifies or pays a stated benefit to the insured or his/her
beneficiary in the event of bodily injury or death due to accidental means (other
than natural causes).
5. Actual cash value (ACV): The fair market value of property, taking into account
factors that might augment or reduce the value of the property in question.
Actual cash value (ACV) is usually calculated in one of three ways: (1) cost to
repair or replace less depreciation; (2) fair market value; or (3) consideration of
all relevant evidence of the value of the damaged property.
6. Adjustable premium: An insurance premium that can move up or down over
time based on a policy that is agreed to at the outset of an insurance contract.
, There are several factors that may cause adjustable premiums to change,
including the varying costs of maintaining the contracts. Also known as a
"variable premium."
7. Adjuster: One who investigates insurance claims, makes recommendations
regarding the payment of benefits from insurance policies, and negotiates
payments and settlements.
8. Agency contract: A contract that allows one person to employ another to do
her or his work, sell her or his goods, and acquire property on her or his behalf
as if the employer were present and acting in person. The principal may
authorize the agent to perform a variety of tasks or may restrict the agent to
specific functions, but regardless of the amount or scope of authority given to
the agent, the agent represents the principal and is subject to the principal's
control. The principal is liable for the consequences of acts that the agent has
been directed to perform.
9. Agent: A person who is employed or authorized to act on behalf of another.
Agents can be independent or direct writers. An independent agent is one who
contracts with at least two or more insurance companies to sell their insurance
policies to the public and is paid a commission based on the percentage of each
premium paid. This includes a fee for each policy serviced. A direct agent
represents only one company and sells for only one company.
10. Aggregate: The aggregate amount represents the total limit payable in any one
policy period. It can apply to the entire policy or may only apply to losses arising
from specific sections such as products or completed operations. Unlike most
property policies, there is no automatic reinstatement of the limits of insurance
under the CGL; once the aggregate limit is exhausted there is no more
coverage.
11. All-risks policy: A name given to an insurance policy that covers each and
every loss except for those that are specifically excluded. If the insurer does not
, .
exclude it, then it is automatically covered. This is the broadest type of policy
that can be purchased. It is contrary to specified perils coverage, which is written
to insure damage to property caused by specific "named perils," which are listed
on the policy.
12. Any occupation definition of disability: The insured's eligibility for benefits
depends on the inability to work in any occupation for which that individual is
reasonably suited by education, training, or experience.
13. Asset: Property of all kinds, real or financial, that belongs to a person or
corporation or to the estate of a decedent. An asset is anything that has financial
value including cash, bank balances, investments, proceeds of a life insurance
policy, vehicles, real estate, household goods, and personal effects. The total
of an individual's property is referred to as that person's assets.
14. Bailee: in contract and property law, one to whom goods or property are
entrusted for a stated purpose. Can be either gratuitous (for no consideration)
or for hire (for consideration).
15. Bailees: Bailees such as dry cleaners are liable for customers' goods while in
possession of them. The description of property will indicate whether the policy
covers only the insured's interest as bailee or the joint interest of the insured (as
bailee) and the customers (as owners of the goods).
16. Bailors: Persons who entrust goods to another.
17. Benefit offsets: Provision in group disability plan providing that benefits will be
reduced, or that overpayments will be repaid to the group carrier, in the event
that the plan member receives disability benefits from other sources including
other group policies or government plans
ALBERTA 200 QUESTIONS AND
ANSWERS
1. Accident and health (sickness) insurance: A form of insurance
compensating an individual for loss as a result of an accident or illness. It may
pay certain or all expenses for medical and similar services and a weekly or
monthly indemnity for loss of income. The amounts and items covered vary from
policy to policy and depend to some extent on what coverage is purchased by
the insured.
2. Accident basis: The injury or damage must be due to an event that is sudden,
unintended (not deliberate), and unexpected.
3. Accident frequency: The determination of how often the rate or frequency of
accidents occur at a particular operation, site, or location, or to the insured as a
whole, for a specified period of time for the exposure units involved.
4. Accidental death and dismemberment insurance: Form of accident
insurance that indemnifies or pays a stated benefit to the insured or his/her
beneficiary in the event of bodily injury or death due to accidental means (other
than natural causes).
5. Actual cash value (ACV): The fair market value of property, taking into account
factors that might augment or reduce the value of the property in question.
Actual cash value (ACV) is usually calculated in one of three ways: (1) cost to
repair or replace less depreciation; (2) fair market value; or (3) consideration of
all relevant evidence of the value of the damaged property.
6. Adjustable premium: An insurance premium that can move up or down over
time based on a policy that is agreed to at the outset of an insurance contract.
, There are several factors that may cause adjustable premiums to change,
including the varying costs of maintaining the contracts. Also known as a
"variable premium."
7. Adjuster: One who investigates insurance claims, makes recommendations
regarding the payment of benefits from insurance policies, and negotiates
payments and settlements.
8. Agency contract: A contract that allows one person to employ another to do
her or his work, sell her or his goods, and acquire property on her or his behalf
as if the employer were present and acting in person. The principal may
authorize the agent to perform a variety of tasks or may restrict the agent to
specific functions, but regardless of the amount or scope of authority given to
the agent, the agent represents the principal and is subject to the principal's
control. The principal is liable for the consequences of acts that the agent has
been directed to perform.
9. Agent: A person who is employed or authorized to act on behalf of another.
Agents can be independent or direct writers. An independent agent is one who
contracts with at least two or more insurance companies to sell their insurance
policies to the public and is paid a commission based on the percentage of each
premium paid. This includes a fee for each policy serviced. A direct agent
represents only one company and sells for only one company.
10. Aggregate: The aggregate amount represents the total limit payable in any one
policy period. It can apply to the entire policy or may only apply to losses arising
from specific sections such as products or completed operations. Unlike most
property policies, there is no automatic reinstatement of the limits of insurance
under the CGL; once the aggregate limit is exhausted there is no more
coverage.
11. All-risks policy: A name given to an insurance policy that covers each and
every loss except for those that are specifically excluded. If the insurer does not
, .
exclude it, then it is automatically covered. This is the broadest type of policy
that can be purchased. It is contrary to specified perils coverage, which is written
to insure damage to property caused by specific "named perils," which are listed
on the policy.
12. Any occupation definition of disability: The insured's eligibility for benefits
depends on the inability to work in any occupation for which that individual is
reasonably suited by education, training, or experience.
13. Asset: Property of all kinds, real or financial, that belongs to a person or
corporation or to the estate of a decedent. An asset is anything that has financial
value including cash, bank balances, investments, proceeds of a life insurance
policy, vehicles, real estate, household goods, and personal effects. The total
of an individual's property is referred to as that person's assets.
14. Bailee: in contract and property law, one to whom goods or property are
entrusted for a stated purpose. Can be either gratuitous (for no consideration)
or for hire (for consideration).
15. Bailees: Bailees such as dry cleaners are liable for customers' goods while in
possession of them. The description of property will indicate whether the policy
covers only the insured's interest as bailee or the joint interest of the insured (as
bailee) and the customers (as owners of the goods).
16. Bailors: Persons who entrust goods to another.
17. Benefit offsets: Provision in group disability plan providing that benefits will be
reduced, or that overpayments will be repaid to the group carrier, in the event
that the plan member receives disability benefits from other sources including
other group policies or government plans
