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!

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!

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What does Extended Coverage Insurance do?

Limits the coverage of the primary policy
Enlarges the coverage of the primary policy
Covers only commercial properties
Provides life insurance benefits

The correct answer is: Enlarges the coverage of the primary policy

Extended Coverage Insurance, also known as Extra Coverage Insurance or Excess Insurance, is designed to provide additional coverage beyond the limits of the primary policy. This extra coverage can protect against potential liabilities that may exceed the limits of the primary policy. Option A is incorrect because Extended Coverage Insurance does the opposite of limiting coverage - it expands it. Option C is incorrect because Extended Coverage Insurance can cover both commercial and personal properties. Option D is incorrect because Extended Coverage Insurance is not typically related to life insurance benefits. In summary, Extended Coverage Insurance provides additional coverage and should not be confused with limiting coverage, covering only commercial properties, or providing life insurance benefits.