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!

Practice this question and more.

What does the unearned premium reserve represent in an insurance company?

Earned premiums
Paid claims
Unearned premiums
Capital investments

The correct answer is: Unearned premiums

The unearned premium reserve represents the portion of an insurance company's premiums that have been received but have yet to be earned through coverage. Option A, earned premiums, refers to the portion of premiums that have already been earned through providing insurance coverage. Option B, paid claims, refers to the portion of premiums that have been used to pay out claims. Option D, capital investments, is not directly related to the concept of unearned premium reserve in an insurance company.