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 frequency of loss assume about the size of loss?

It is decreasing over time
It is increasing over time
It is constant
It is not relevant

The correct answer is: It is constant

Frequency of loss assumes that the size of the loss remains constant. This means that the frequency of occurrence of a particular type of loss is expected to remain relatively the same over time. Option A and B, which state that the size of loss is either decreasing or increasing over time, do not align with the assumption of a constant frequency of loss. Option D, stating that the size of loss is not relevant, is also incorrect as the size of loss is an important factor in understanding the impact of losses. Therefore, option C is the most accurate answer.