Alberta General Insurance Level 1 Practice Exam

Participation in a subscription policy benefits insurers by reducing individual risk. This is because by spreading the risk across multiple insurers, it decreases the likelihood of any one insurer having to pay out a large sum. This, in turn, allows for more stable premiums and overall financial stability for the insurer. Options A, C, and D are incorrect because they either focus on increasing premiums or ensuring government subsidies and policy renewals, which may have benefits for the insurers but are not directly related to reducing risk.