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 retention refer to in insurance terms?

Customer loyalty programs
The liability amount retained by the ceding company
Document storage protocols
The term of the insurance contract

The correct answer is: The liability amount retained by the ceding company

Retention in insurance terms refers to the specific amount of liability that an insurance company retains for claims that arise within a certain period of time. This excludes any claims that are passed on to a reinsurer. Options A, C, and D do not accurately represent the concept of retention and are therefore incorrect. Customer loyalty programs are strategies to retain customers, not related to insurance terms. Document storage protocols refer to how records are stored, not related to liability. The term of the insurance contract refers to the length of time the insurance policy is in effect, not related to the amount of liability retained by the ceding company.