Alberta General Insurance Level 1 Practice Exam

Question: 1 / 400

What is a premium in insurance terms?

The maximum amount payable in case of a claim

The document proving insurance coverage

The price of insurance protection for a specified risk for a specified period

A. The maximum amount payable in case of a claim would be the policy limit, not the premium. The premium is the cost of the insurance, not the maximum claim amount.

B. The document proving insurance coverage would be the insurance policy, not the premium. The premium is the cost of the insurance, not the proof of insurance.

D. An additional fee for insurance processing would be referred to as the insurance processing fee, not the premium. The premium is the cost of the insurance itself.

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An additional fee for insurance processing

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