Alberta General Insurance Level 1 Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Ace your Alberta General Insurance Level 1 Exam with our comprehensive practice quiz. Tailored to mimic the real test, our quiz offers detailed explanations, expert tips, and all you need to succeed. Start your path to becoming a licensed professional today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

For what main reason should agents and brokers carry Errors and Omissions Insurance?

In case of physical injuries
For lawsuits due to actions or omissions leading to lack of coverage
For property damage caused by the insured
To cover administrative penalties

The correct answer is: For lawsuits due to actions or omissions leading to lack of coverage

Agents and brokers should carry Errors and Omissions Insurance because it protects them from lawsuits arising from their actions or omissions resulting in a lack of sufficient coverage for their clients. This is important because if a client suffers financial loss due to the agent's or broker's error or negligence, they may file a lawsuit to seek compensation. Physical injuries, property damage, and administrative penalties are not typically covered by Errors and Omissions Insurance, so options A, C, and D are incorrect.