Alberta General Insurance Level 1 Practice Exam

Specified Perils in an insurance policy are defined as perils that are explicitly named and covered within the terms of the policy. This means that the insurance contract will detail specific risks or events that are insured against, such as fire, theft, or vandalism. By naming these perils, the insurer clarifies which events the coverage will respond to, providing clarity to both the insurer and the insured about what is protected.

In contrast, other options do not accurately describe Specified Perils. Coverage for all possible perils would indicate a more comprehensive policy, typically referred to as "all-risk" or "open perils," which is different from the limited scope of specified perils. Similarly, identifying perils that are specifically excluded from the policy pertains to exclusions rather than coverage. Lastly, the unpredictability of the insurance coverage does not align with the concept of specified perils, which is all about clearly defined and understood risks.