Alberta General Insurance Level 1 Practice Exam

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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!

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How is utmost good faith related to a broker's duty of care?

Brokers must disclose all material information to insurers and clients.
Brokers are only required to communicate with insurers.
Brokers should keep information confidential from both insurers and clients.
Brokers are not required to disclose material information to clients.

The correct answer is: Brokers must disclose all material information to insurers and clients.

Utmost good faith goes beyond just fulfilling the broker's duty of care, which requires them to act with the best interests of their clients in mind. In addition to this, the principle of utmost good faith also requires brokers to disclose all material information to both insurers and clients. Option B and C are not correct because they either partially fulfill or completely disregard the duty of care and utmost good faith. Option D is also incorrect because brokers have a duty to disclose material information to their clients in order to ensure transparency and fairness in the insurance process.