Alberta General Insurance Level 1 Practice Exam

A loss run report serves as an essential document that provides a detailed history of an insured's claims over a specified period. It typically includes information regarding the date, nature, and costs associated with each claim. Such reports are crucial for insurers when evaluating risks and determining premium pricing for new policies or renewals, as they help identify the insured's loss history and any patterns of risk associated with their claims.

Insurers and brokers often use loss run reports to assess how likely it is that an insured will have future claims, which in turn influences underwriting decisions and premium calculations. Properly understanding and analyzing this information assists both parties in managing risks effectively.

Other options do not encompass the primary function of a loss run report. For example, while comparing insurance premiums and analyzing industry trends may be beneficial in the insurance realm, those tasks are unrelated to the specific intent and utility of a loss run report. Similarly, summarizing all active insurance policies does not relate to the claim history that a loss run report captures.